Healthcare costs are increasing, negatively impacting workers’ financial well-being.

Thousands of residential building service workers represented by the 32BJ SEIU union recently voted decisively to authorize a strike, underscoring the increasing pressures regarding wages, working conditions, and essential benefits. Central to this growing tension is the imperative to safeguard healthcare coverage that many workers and their families rely on daily.

Healthcare access is often positioned as a fundamental right, yet the current landscape suggests a pressing need for advocacy, particularly as federal protections wane for millions. The focus of the union’s concerns revolves around the soaring costs associated with hospital services, which disproportionately consume a significant portion of compensation for workers. In fact, current data reveals that hospital expenditures account for roughly 50 percent of healthcare spending, as well as nearly 13 percent of the total compensation of unionized workers. These expenses often surpass costs related to essential services such as transportation and childcare, further compounding challenges associated with housing affordability.

A striking example of these challenges arose when 32BJ SEIU severed ties with NewYork-Presbyterian Hospital due to exorbitant charges to their health fund. While this decision disrupted healthcare access for many members, it yielded substantial savings that could be redirected towards enhancing wages. However, this is not a sustainable long-term strategy; thus, the union is advocating for the passage of the Fair Pricing Act (FPA) in Albany. This proposed legislation aims to impose price limits on common medical procedures, seeking to maintain affordability without sacrificing quality.

Specifically, the Fair Pricing Act would establish a price ceiling for routine healthcare services, including vaccinations and basic diagnostic tests. This legislative measure would help ensure that patients are not subject to exhorbitant price variations for routine services, regardless of whether they are provided by large hospital systems or local practices.

The rising costs of healthcare have significant implications for working families and employers alike, often leading individuals to forgo necessary medical care due to affordability issues. In 2022, about 66 percent of New Yorkers reported delaying or forgoing healthcare because of costs, with the impact being even more pronounced among Hispanic and Latino adults, where the rate surged to 81 percent. As millions face increasing marketplace healthcare premiums due to the expiration of enhanced tax credits, these alarming trends are likely to worsen, potentially jeopardizing the health of many residents.

The Fair Pricing Act presents a crucial opportunity to alleviate these financial burdens. According to research conducted by health economists at Brown University, the legislation could potentially save patients 3 million through reduced out-of-pocket expenses. These savings, while modest compared to the vast revenues of major hospital systems, offer meaningful relief to working individuals and families grappling with rising healthcare costs.

Furthermore, the FPA thoughtfully exempts safety net and public hospitals from its provisions, thereby protecting access for vulnerable populations while targeting inflated fees associated with larger hospital networks. The ongoing dialogue around healthcare affordability calls for urgency, and it is essential for lawmakers to cooperate in passing the Fair Pricing Act, ensuring that quality care does not come at an exorbitant price for the millions of New Yorkers who need it.

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