New York City has proposed a new self-funded health plan administered by EmblemHealth and UnitedHealthcare for municipal employees, pre-Medicare retirees and their dependents.
If approved by city regulators, the new plan would be effective on Jan. 1, according to an Aug. 28 news release.
The proposed plan is the city’s first health plan procurement in more than four decades and would cover 75% of the workforce and their families, or 750,000 people. The proposed plan would cut spending by 10%, saving up to $1 billion annually. In addition, more than 200,000 members who have used physicians who are currently out of network, will be in network under the proposed plan.
New York City spends more than $11 billion annually on health benefits for 1.2 million people. About 75% of those individuals are covered through a PPO program administered by Anthem Blue Cross for hospital coverage and EmblemHealth for medical coverage, while another 20% are enrolled in an HMO plan also administered by EmblemHealth.
