To: Mr. Lawsky, President Donald Trump, The New York State House, The New York State Senate, Governor Andrew Cuomo, The United States House of Representatives, and The United States Senate
Emblem Health unethical to NY brokers
Stop Emblem Health from putting all NY brokers out of business
Why is this important?
Emblem Health has notified all NY brokers that they will no longer pay commission as of 05/01/13. This is completely unethical and will have a drastic impact on our clients and the livelihood of all NY brokers. Because Emblem Health was denied a rate increase by the Department of Financial Services –DFS, they are taking action on the brokers that helped build their brand, and who service there policy holders. (See DFS statement below)
With Healthcare reform to take effect in 2014, our knowledge and service is crucial in keeping our clients in compliance. This action needs to be stopped NOW!
“Thus, while EmblemHealth, Inc. and HIPGNY have been profitable, their operating subsidiary, GHI, for some reason is not. In reviewing the reasons for this disparity, DFS has become increasingly concerned that Emblem’s overall management and its executive
compensation practices have been a significant cause of GHI’s marginal financial condition. Moreover, DFS is concerned about the impact on the public of the rate increases proposed in the instant rate application. As a not-for-profit corporation, Emblem has a special duty to provide affordable health insurance to New Yorkers and to manage itself appropriately to make that possible. Poor management and compensation not related to both short and long-term performance can create improper incentives and have a deleterious impact on a company’s operations.”
With Healthcare reform to take effect in 2014, our knowledge and service is crucial in keeping our clients in compliance. This action needs to be stopped NOW!
“Thus, while EmblemHealth, Inc. and HIPGNY have been profitable, their operating subsidiary, GHI, for some reason is not. In reviewing the reasons for this disparity, DFS has become increasingly concerned that Emblem’s overall management and its executive
compensation practices have been a significant cause of GHI’s marginal financial condition. Moreover, DFS is concerned about the impact on the public of the rate increases proposed in the instant rate application. As a not-for-profit corporation, Emblem has a special duty to provide affordable health insurance to New Yorkers and to manage itself appropriately to make that possible. Poor management and compensation not related to both short and long-term performance can create improper incentives and have a deleterious impact on a company’s operations.”