New York City Mayor Eric Adams is overriding the city comptroller's attempt to block the implementation of its contract with Aetna to administer a Medicare Advantage plan for 250,000 city retirees.
In a June 15 news release, Mr. Adams said the city is "clearly within our authority under the charter to deem this contract registered."
The contract is set to take effect Sept. 1.
On June 8, New York City Comptroller Brad Lander said his office would block the implementation of the contract while a lawsuit from retirees challenging the plan is ongoing.
In a news release, Mr. Lander said he is "seriously concerned about the privatization of Medicare plans, overbilling by insurance companies, and barriers to care under Medicare Advantage."
In a lawsuit filed May 31, nine retired New York City employees allege providing Medicare Advantage as the only option for retirees violates the city's obligation to provide health benefits to its retired workers.
Retired workers can opt out of the Medicare Advantage plan for traditional Medicare but will have to pay for any supplemental coverage out of their own pockets.
In the lawsuit, the retirees alleged they could face coverage denials, out-of-pocket costs and lose their current providers if they are not in Aetna's Medicare Advantage network.
Aetna filed a petition to intervene in the lawsuit on June 13.
Mr. Adams has previously said the Medicare Advantage contract could save the city $600 million a year.
"As we've said repeatedly, this Medicare Advantage plan improves 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," Mr. Adams said.