| Company | NYLCare Health Plans |
| Date Announced | 9/20/1995 |
| Site | One Liberty Plaza |
| Total Subsidy | $3.7 million |
|
$0.48 million |
| Promised Job Creation | 109 |
| Promised Job Retention | 697 |
| Length of Contract | 10 years |
| Competing Sites | ??? |
| Conditions | none |
| Notes | Health insurer NYL Care received $3.7 million in subsidies from the city and state in exchange for a promise to keep 697 jobs in New York City and create 109 more over the 10-year course of the deal. Aetna acquired NYLCare in 1998. Good Jobs New York has not yet learned if Aetna has created or retained the promised NYLCare jobs. |
| Corporate Notes | NYLCare was the health insurance subsidiary of New York Life at the time this deal went through. NYLCare was bought by Aetna Inc. in a transaction completed in July 1998. Aetna, the country's largest health insurer and also an international insurance and financial services giant, announced plans in July 2000 to sell its financial services and international insurance businesses to ING (another subsidy recipient - see separate entry.) The deal allows Aetna to focus on its troubled health insurance division, U.S. Healthcare, which it acquired in 1996, laying off 4,000 people nationally. (Aetna announced plans to cut another 1,000-2,000 jobs nationwide when it bought Prudential Insurance Co.'s health insurance business in 1998.) The New York State Insurance Department fined NYL Care and Aetna U.S. Healthcare a total of $10,700 in January 1999 for failure to comply with New York's Prompt Pay Law in 1998, which requires carriers to pay undisputed claims and bills within 45 days. |
| Critics | |
| A
note on sources -- or why many of these profiles appear incomplete.
They are. Good Jobs New York compiled the numbers in these profiles from
press releases and news accounts of the deals. Unfortunately, more
detailed information on these subsidies is very difficult to obtain --
even though it should be readily available to the public. In many cases,
neither the company nor the city nor state released certain information,
particularly the terms of the agreement, i.e., the conditions which the
company had to meet in order to receive the subsidy. It should also be
noted that the value of the subsidy may not end up being equal to the
value estimated at the time of the agreement. And it should not be assumed
that the actual number of jobs retained and created will be the same as
the numbers predicted.
Because the public deserves easy access to information about how taxpayer dollars are being spent, Good Jobs New York will update these profiles as we uncover more information. Good Jobs New York - May 25, 2001 |
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