New York City's teachers union has pulled support for the city's shift to Medicare Advantage, further complicating the controversial effort, the New York Daily News reported June 24.
New York City has been trying to implement a Medicare Advantage contract for retirees since 2021. The city awarded a $15 billion contract to Aetna to manage benefits for 250,000 retired employees in 2023, but the contract has been blocked by judges.
The contract, if implemented, would be one of the largest Aetna has been awarded.
The switch to Medicare Advantage was negotiated in part by the Municipal Labor Committee, which represents the city's public sector unions, according to the Daily News. The teacher's union, UFT, is one of the largest in the organization.
UFT President Michael Mulgrew said he reversed his position on the contract in a letter sent to labor leaders June 23. In the letter, Mr. Mulgrew wrote that Mayor Eric Adams' administration was unwilling to continue work on the Medicare Advantage contract in good faith.
"This administration has proven to be more interested in cutting its costs than honestly working with us to provide high-quality healthcare to city workers," Mr. Mulgrew wrote.
Mr. Adams has said a Medicare Advantage plan will save the city $600 million annually in costs for retired employees.
The loss of union support is the latest challenge for the city in implementing a Medicare Advantage plan for retired employees. In May, an appellate court upheld a judge's previous ruling that blocked the city from implementing the contract. A group of retirees sued to block the plan, alleging that offering MA as the only option for retiree benefits violated the city's obligation to provide health benefits to its retired workers.
Mr. Adams is appealing the decision to the state's highest court, which has not said whether it will take up the case, according to the Daily News.
Members of the Municipal Labor Committee will meet June 26 to try to reach a unified stance on the Medicare Advantage plan, the Daily News reported.