NYC judge kills Eric Adams’ bid to overhaul Medicare for 250K retired workers

A judge’s ruling Friday put the kibosh on Mayor Eric Adams’ bid to move 250,000 city retirees off their traditional Medicare insurance plan and into a trimmed, privately managed version of the program.

City Hall immediately vowed to appeal.

Manhattan Supreme Court Judge Lyle Frank wrote that the city is “permanently enjoined from requiring any city retirees, and their dependents from being removed from their current health insurance plan(s).”

The order added the city also cannot require retirees “to either enroll in an Aetna Medicare Advantage Plan or seek their own health coverage.”

City workers faced the reality of having their traditional Medicare cut in favor of Aetna’s cost-saving option Medicare Advantage Plan.

“We are extremely disappointed in this ruling, and intend to appeal,” City Hall spokesman Jonah Allon said in a statement.

“This Medicare Advantage plan, which was negotiated closely with and supported by the Municipal Labor Committee, would improve upon retirees’ current plans, including offering a lower deductible, a cap on out-of-pocket expenses, and new benefits, like transportation, fitness programs, and wellness incentives. In addition, it would save $600 million annually, especially critical at a time when we are already facing significant fiscal and economic challenges.”

“This decision only creates confusion and uncertainty among our retirees,” the statement ended.

The move to switch over was first proposed by former Mayor Bill de Blasio — and was designed to allow the city to tap into an estimated $600 million in federal subsidies available to Medicare Advantage plans, potentially lowering New York City’s costs to provide healthcare for its retired public workers.

And while Adams advanced the program with changes that were approved by the Municipal Labor Committee — comprised of union leaders coalitions representing workers and retirees — it faced bitter criticism from retirees and New York’s Democratic Rep. Alexandria Ocasio-Cortez, who called the program a “cash cow” for private insurers.

The lawsuit, brought by retired municipal workers and the NYC Organization of Public Service Retirees, was introduced in May after retired city government workers sued Adams and the city for $55 million over $15 copays for doctor visits.

On June 5, Frank issued a preliminary injunction blocking the transition just days before it would go into effect.

Jake Gardener, lawyer for the retirees, said in a statement that ““We are grateful to Justice Frank for again recognizing the multiple ways in which the health and healthcare rights of retired City workers would be imperiled by the City’s new Medicare Advantage plan.  Because of Justice Frank’s well-reasoned decision, hundreds of thousands of senior citizens and disabled first responders will be able to continue receiving the medical care they desperately need and to which they are entitled.”

Marianne Pizzitola, president of the New York City Organization of Public Service Retirees — one of the lead plaintiffs — was also elated.

“This is now the third time in the last two years that courts have had to step in and stop the City from violating retirees’ healthcare rights,” her statement said.

“We once again call on the City and the Municipal Labor Committee to end their ruthless and unlawful campaign to deprive retired municipal workers of the healthcare benefits they earned. Knowing after every win, the City has found a way to go around the Judge’s decision, the City Council should support Intro 1099 sponsored by Councilman Charles Barron, and stop this administration from wasting taxpayer dollars appealing righteous decisions by the Court. NYC Retirees earned their right to Federal Medicare and we relied on the promise we would have this benefit through our lifetime. We hope this decision will help retirees nationwide stop their former unions and employer from privatizing the Federal Public Health Benefit of Medicare so we can live the rest of our lives in peace.”