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Lawmaker: Debt may sink some health care providers

ALBANY, N.Y. (AP) — A New York lawmaker says thousands of health care providers could be without jobs if the state Workers Compensation Board doesn’t step in to help with problems stemming from a 2009 bankruptcy.

Queens Sen. Tony Avella, chair of the social services committee, is asking the board on Thursday for a six-month extension for companies that employ the workers to come up with a way to pay $188 million in debt from the Health Care Providers Self Insurance Trust bankruptcy.

Avella says the trust was created to help the companies lower the cost of their worker compensation coverage. After it folded, trust members were liable for repaying the debt, which many cannot afford.

In a letter to the board, the Democrat says the debt will cause members to file for bankruptcy or face lawsuits.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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