|
50,000+ licensed yellow cab drivers labor 12-hour shifts, seven days a week in one of the most hectic and stressful occupations in the city, without industry-sponsored health care, paid time off or guaranteed income. A 2008-2009 study conducted by NYC Councilman Eric Gioia found drivers to be uninsured at double the rate of fellow New Yorkers - 52% of drivers reported having no coverage. Of taxi drivers who had both a doctor's visit and a stay in the hospital within the last twelve months of the survey - a group particularly in need of insurance and prescription drugs - 41% were without insurance.
Taxi drivers, uninsured and vulnerable, also labor with almost universal rates of pain and stress. In an ergonomics study funded by the National Institute of Occupational Safety and Health, researchers from the Occupational Health Internship Program (OHIP) found 76.3% of drivers experienced lower back pain, 39.2% had right shoulder pain, 41.7% had knee pain and almost half (48.2%) had right ankle pain. Taxi drivers are also especailly vulnerable to several medical conditions.
Given taxi driving is a high risk occupation, many of our members' health issues are a result of suffering violence on the job. A 2010 Department of Labor study found that taxi drivers are 33 times more likely to be killed on the job than other workers; in 2001, the DOL concluded drivers were 80 times more likely to be robbed. NYTWA's own survey of 191 drivers in Summer 2010, conducted by OHIP researchers, found further startling facts: 56% of drivers reported they had been called racial slurs; 35% reported that they been assaulted while driving, with 17% having been assaulted within 12 months of the interview. Of those assaulted, 35% had been assaulted with a weapon. Meanwhile, only 5% of drivers injured in assaults filed a Worker's Compensation claim.
The Taxi Workers Health and Wellness Fund (HWF) would be a ground-breaking initiative that would serve over 50,000 hard-working New Yorkers, almost universally without benefits and insurance. New York State's Insurance Department would gain revenue, New York City's overburdened emergency rooms and public clinics would be relieved in time and cost, and the health care industry would generate new jobs. The Fund would further serve as a model for how to deliver care to independent contractors and other contingent workers. Benefits would include healthcare (medical and dental), as well as NY State disability insurance, and term life and accidental death and dismemberment insurances. Full-time, active drivers who meet eligibility requirements would receive paid benefits while remaining license holders (seasonal, part-time, not working) would have the opportunity to purchase the benefits at cost.
The Fund would be established and enforced by TLC rulemaking and classified as a Voluntary Employee Beneficiary Association (VEBA). A Board of Trustees, made up primarily of drivers as well as prominent New Yorkers with expertise and commitment to worker health and safety would provide financial oversight. The Board would employ a Fund Administrator to oversee the daily operations and upkeep with all city, state and federal rules governing Fund administration. |
|
Health Care: Family Health Plus Employer Buy-In Program
.
The Fund would contract with New York State's Family Health Plus (FHP) Employer Buy-In Program, a state-subsidized private plan which provides the same level of coverage as the state's public program, Family Health Plus. At present, home-based child care workers, also deemed independent contractors, are insured under the FHP Employer Buy-In Program. Employers are given rates according to workforce size and the NYS Department of Health announces rate reviews on an annual basis. The employer must pay for 70% of the premium costs, while the state covers the remaining 30%. FY 2010 monthly premiums are $276.05 per participant for medical and dental. All drivers, whether through the private or public component of FHP, would receive comprehensive services, including: physician services, prescription drugs, diagnostics, physical and occupational therapy, diabetic supplies, preventive services, inpatient/outpatient services, smoking cessation products and more.
.
NYS Disability Insurance
.
The New York State Insurance Fund provides disability coverage to New Yorkers who suffer loss of income due to an injury and to pregnant working women. Coverage is capped at $170 per week for up to 26 weeks. (Longer loss of time is considered permanent disability and covered only federally, not at the state level.) At present, taxi drivers are covered only by Workers Compensation. And only lease drivers are eligible. The Taxi Workers HBF's state disability insurance coverage would provide all drivers, lease drivers and owner-ops, a necessary safety net. Furthermore, such coverage would support drivers unable to work due to an injury that is not work related. The Taxi Workers HBF would purchase the statutory levels through NYS. Similar to most other private employers, the Fund would purchase supplementary disability coverage through the private insurance market. NYS would gain revenue from this new source.
.
Life Insurance
.
NYTWA at present provides term life and accidental death and dismemberment insurances to all of our members through Amalgamated Life Insurance Company ( see more benefits here). Similar to state disability, life insurance policies are one of the most cost efficient fringe benefits. The Fund would aim for an initial coverage of $10,000 for each insurance type. At present calculations, 30,000 drivers could be provided disability and life insurances for just $2.1 million.
.
Eligibility Requirements
.
The primary eligibility criteria would be the number of shifts worked during the 12-month license period for each driver. We would propose such number to be a minimum of 200 shifts per year for lease drivers and a number to correspond with the TLC's owner-must-drive regulation for owner-operators who purchased the medallion after 1990. We estimate that there are, at maximum, 30,000 out of 50,000 license holders who would meet the criteria. The Fund would collect $25 per month from each eligible driver, covering health insurance, NYS disability, and life insurance. Drivers who do not work full time would have the option to purchase the benefits at cost. However, the Fund would project for the premium costs only for drivers determined to be eligible.
.
|
|
Expenses and Revenue: How the HBF Will Be Funded |
|
At current rates, we estimate the cost of the Fund to be $51,789,000 for healthcare, state disability insurance and life insurance.
* The calculation is for 15,000 drivers only because the remaining 15,000 are expected to be covered 100% by the state through Family Health Plus or Medicaid.
The cost of administration would fluctuate depending on the size and scope of the Fund. Our estimate for a Fund which administers all the benefits above, screens 50,000 drivers and manages the enrollment of 30,000 drivers would approximate $2.1 million.
As such, the total cost of a comprehensive Fund would be just under $54 million.
The sources of revenue for the Fund would be varied:
- Industry Contribution
- Industry-Specific Revenue Generating Programs
- Driver Contribution
- State Subsidies
- Federal Subsidies
- Private Foundation Support
The seed money would be derived from the industry and driver contributions.
See charts below for totals reached in each category.
Rooftop Ad Revenue: At minimum, owner-operators receive $100 per month for roof-top advertising. Fleets and agents typically earn more.
Lease Contribution: This amount must be borne by the industry and not the drivers. Lease caps must not be increased. Fleets and agents have already increased their lease revenue by by-passing TLC regulations, with the former charging weekly drivers the daily rate and the latter calling their overcharges "vehicle expenses." The overcharges average $200 to $250 per week above the lease cap, an annual loss of income of $5,000-$10,000 per driver. The TLC must bring the overcharges in line and earmark monies per shift toward the Fund, requiring garages and agents to submit the monies on a weekly basis. A rate of $3 per shift per garage or agent leased taxi would yield over $44 million. This represents 89% of the estimated health care costs and 82% of the total Fund budget.
Direct Driver Contribution: The Fund would collect $25 per month, or $300 per year, from drivers who meet the eligibility requirements of full-time active members of the workforce. The monies would be collected directly from the drivers, not through taxi companies or the TLC.
Credit Card Processing: Credit card processing generates millions of dollars for vendors, fleets and agents. Drivers pay three service fees on every transaction, with just under 2% of the five percent going to fleets and agents who act as processors. The Fund could easily take on this role without an increase in percentage to burden the driver; 5% is already double the rate paid by other businesses. As such, each driver would have their own merchant credit card account. The HBF would process all transactions at the current rate charged by fleets and agents, excluding the tip, toll, tax and any other future monies which are liabilities for the driver.
Subsidies and Other Support: The Fund would be eligible for a number of non-industry sources, both public and private. Supplemental seed money could also be derived from private foundations particularly interested in new models of providing for the uninsured. NYTWA has partnered with NYU Medical School on a number of community-based research programs to address health disparities. We are also developing a similar relationship with Mt. Sinai Hospital and Bellevue Hospital. We've mobilized over 40 community clinics and service organizations to screen over 10,000 drivers in 10 years through our health fairs at airports, the office and places of worship. There is tremendous support for the health of taxi workers and a city-endorsed Fund would no doubt garner an outpouring of aid.
|
|
