Are there any other 69 7/10/01 LAW & GOV'T - RES. 000476 union representatives who wish to be heard who have not been heard? (No response.)
Kathy Scott or Linda Ryan or from any other union? If not, Joe Goldberger from the retirees. And then if there's anyone else present who wishes to be heard, the committee will be glad to hear you. Reverend Blount, if there's anything you would like to add, you would be welcome.
My name is Joe Goldberger, a retired City employee. Mr. Chairman, thank you for allowing me to again present my thoughts about problems in developing an adequate pharmaceutical benefit for retired non-represented City employees. There are numerous important issues that this committee has uncovered in its attempts to 70 7/10/01 LAW & GOV'T - RES. 000476 investigate the City's failure to develop a cost-effective and efficient pharmaceutical benefit for non-represented retirees and non-represented employees. Perhaps the most important related issue is the Administration's failure to cooperate by providing requested documents and answers to past Administration actions. The role of the City Council in Philadelphia government has been minimized, and this committee represents the finest attempt to correct this government imbalance. The use of the subpoena power is absolutely critical. If the Administration is allowed to ignore City Council's requests, what can retirees expect from that administration in resolving our problem? The Administration has exercised poor or no judgment in past pharmaceutical benefit negotiations, as evidenced by their inability or unwillingness to answer specific questions related to existing and past pharmaceutical benefit plans, coverage statistics, contract negotiations, and actual contract documents. This said, where are we now and what should be the priority? There is a need to focus on 71 7/10/01 LAW & GOV'T - RES. 000476 a priority issue critical, I believe, to the issues of future retiree and non-represented employee benefits and future labor negotiations. And that is the elimination of the discriminatory grouping of older non-represented retirees from newer non-represented retirees. The need to eliminate this inequity prior to negotiating a pharmaceutical benefit plan is clear and the time frame so immediate that I believe efforts must prove successful, or any negotiation for new plans scheduled to begin January 1, 2002 and which are to be presented to us in the fall of 2001 will present a continued unsatisfactory benefit. Until this inequitable grouping is replaced by a larger "blended" rate, many non-represented retirees will be substantially disadvantaged by higher costs and less benefits. The smaller the group, the less likely costs can be spread as they properly should be over as large as possible a number of individual to see obtain an adequate plan, a plan such as presently available for School District of Philadelphia, Commonwealth of Pennsylvania, and District Council 47 retirees. I have used the term "discriminatory" in 72 7/10/01 LAW & GOV'T - RES. 000476 referring to the invidious separation of older non-represented retirees from other non-represented retirees. While I am not a lawyer, I wish to bring to your attention a Third District Court of Appeals ruling affecting the States of Delaware, New Jersey, and Pennsylvania that the County of Erie, Pennsylvania violated the Age Discrimination in Employment Act by providing Medicare-eligible retirees with health insurance benefits that were inferior to those provided to younger retirees. Perhaps the City Law Department can shift its attention away from studying ways to prevent this committee from obtaining necessary documents to examine the effects of this decision. Or should we plan on taking the City to the United States District Court to obtain resolution? The City Administration has over the years been allowed to follow a path of no resistance in its poor health benefit negotiations. The City has been "rewarded" by having retirees drop from the City-administered plans to fend for themselves. Those retirees who dropped out of City-administered plans last December, who did not participate in the may plans offering must be allowed to return to 73 7/10/01 LAW & GOV'T - RES. 000476 newly negotiated adequate plans effective January 1, 2002.
No negotiation or fact-gathering can be undertaken without some idea of the values the negotiator wishes to maximize. We have been treated to the Personnel Director's statements that the City has no "obligation" to those retired over four or five years. Isn't that strange, when the City provides free pharmaceuticals to the City health Center clients who do not have insurance coverage? This Council has been providing funding for that program for many years. City Council in the Resolution No. 15 000476 establishing this investigation stated a value that should be shared by Administration benefit negotiators. It asks the question whether the City could provide more comprehensive and less costly coverage. . if other options were pursued? Can we expect the same value from the Administration? Is this ran unreasonable question request? I conclude my remarks by again stating that although there are very vital issues to be resolved with respect to past union negotiations and 74 7/10/01 LAW & GOV'T - RES. 000476 under-funding of District Council 47's health plans and the critical need to establish a strong City Council presence in the conduct of municipal government, there is an immediate and time-critical need for announced decision to abolish the discriminatory grouping of non-represented retirees (over four or five years) for health benefit purposes. Thank you.
Thank you very much, Mr. Goldberg. The committee will consider your comments. Is there anybody else to be heard? Please come forward. Whoever wishes to be heard, please come forward and sit around the table. (Witnesses come forward.)
Reverend Blount, identify yourself for the record and proceed. REV. BLOUNT: Yes. Reverend Harold Blount. I am also a retired employee for the City of Philadelphia. And I'd like to apologize for the way I sound but I came straight from the dentist's office this morning to be here at the hearing. So, therefore, the novocain is wearing off a bit, 75 7/10/01 LAW & GOV'T - RES. 000476 period. But one of the things from listening and particularly from the City Solicitor, and I'm not a lawyer. However, you know, I have a master's degree from Temple, I have a master's degree from the University of Pennsylvania, and I'm now pursuing a master's degree at Eastern College in education. And what I don't understand for one thing is how do you come up here and you have to develop a written response to a request by City Council about some document that he had that he's concerned being privileged; when, in fact, Miss Berkowitz, who is doing almost the same kind of thing, presenting a document of some kind, and she had no problem whatsoever in complying with that request that came from the chair of the Council at this time, period. And to me, you know, I don't understand hop City Council and itself and this committee will allow itself to be placed in a position where they are third-class in the City of Philadelphia.
Thank you very much. We share your sentiments and are working to try to avoid being second- or third-class citizens. Thank you very much, Reverend Blount. 76 7/10/01 LAW & GOV'T - RES. 000476 We appreciate your coming here today. REV. BLOUNT: I had no intentions of saying anything whatsoever, but I just couldn't sit by here and go through this shenanigan.
Very good, sir. Please identify yourself for the record.
Yes, sir, Mr. Chairman. Thomas Lamb. I administer the FOP Blue Cross Program. Today with us is Robert Hirsch (ph.), who administers our dental, optical, prescription plan. If the chairman would, I'm requesting an update. In previous hearings, you requested the City Controller's employees be present to conduct an audit. I think the last two audits were 1994 and 1995. Regretfully during those hearings, we heard the same smoke and mirrors that we've heard all along and that we've experienced in the last four contracts. Is there any update, Mr. Chairman, on when the City Controller can finally review the City medical plans?
Is there anyone here from the Controller's office that's authorized to give us a reply? 77 7/10/01 LAW & GOV'T - RES. 000476 (No response.)
We understood that there was a promise by the City to comply with the City Controller's request. Yes, Miss Albert. We don't want you to go beyond your authorization, but if you could shed any light. (Witness comes forward.)
My name is Stacey Albert of Controller's Office. I'm auditor of the City Controller's Office. I came today as just an observer; I'm not authorized to answer any questions, I can't answer any questions.
Yes, sir, I have been to the hearings as an observer and I've been receiving documents that you've been receiving.
And I know that the City Controller is very anxious to conduct the audit. We will further communicate with him. Today's hearing was basically for the purpose of 78 7/10/01 LAW & GOV'T - RES. 000476 getting clarity on the production of document requests we made to the City and to see to what degree they were ready to comply with it. We were not expecting a call to the City Controller because he has his own relationship with the City and we want to do respect his right to work it out, but he's assured us that he's very serious about getting the information and that he's been promised that the City will cooperate. Okay, we're going to stand in recess until Tuesday, July the 31st, at 2 p.m. And among the questions raised will be the question, and you may, Miss Albert, so inform the City Controller --
I'm going to him or a representative of his office to be present to update us on the status of the City Controller's request to audit the health records of the City.
All right and thank you very much. The committee will stand in recess until Tuesday, July 31st at 2 p.m. 79 7/10/01 LAW & GOV'T - RES. 000476 Thank you. (Adjourned 1:52 p.m.) 80 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Tuesday, July 10, 2001, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE ON LAW AND GOVERNMENT RES. NO. 000476 __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter