New York City’s plan to transition the healthcare insurance of 250,000 retired public servants from the original Medicare to a privately managed Medicare Advantage plan by Aetna, starting in 2022, has encountered opposition from the retirees who have appealed against the move. On May 21, the Appellate Division First Judicial Department of the New York State Supreme Court upheld the lower Manhattan State Supreme Court’s ruling, halting the implementation of the city’s proposal.
Retired public servants argue that the city’s plan offers them poorer and more expensive healthcare insurance services. Previously, Judge Lyle Frank of the Manhattan State Supreme Court ruled that forcing retirees to change their healthcare insurance plan violated the New York City Administrative Code, which mandates the city to cover all healthcare insurance costs for retirees.
New York City Comptroller Brad Lander issued a statement on the 21st, stating that the court’s ruling was another victory for retirees. He mentioned that when the Medicare Advantage contract was presented to his office last year, he refused to sign it, and the court’s judgment proved that their decision was correct.
Lander expressed concerns not only within the scope of the city comptroller’s duties but also regarding the transfer of healthcare insurance services to private companies, the excessive charges by insurance companies, and the care restrictions under the Medicare Advantage plan. He emphasized that ensuring all seniors and citizens of New York City can access quality health coverage is a fundamental human right.
According to a report by the New York Daily News, Nicholas Paolucci, a spokesperson for the city’s legal department, stated that the city plans to continue appealing to the final court in New York State – the New York State Court of Appeals.