The city announced in July 2021 that it was shifting to a Medicare Advantage plan for its retired workers, awarding the plan’s bid to the Alliance, a joint venture between Emblem Health and Anthem. The transition led to lawsuits from the retirees, Aetna and UnitedHealthcare.
A judge in October delayed the plan, but ultimately approved it in December, with the city giving enrollees the option to stay on the old plan for nearly an additional $200 a month.
However, on March 3, a judge ruled that imposing a penalty was contrary to a requirement that the city pay the entirety of an employee, retiree or dependent’s health coverage, according to the Daily News.
“The city got greedy, and held a sword over the head of retirees and said, ‘If you don’t accept your new plan, we’re not going to pay for your health care,'” Steve Cohen, a lawyer representing the retirees, told the Daily News. “The judge saw right through that and said, ‘No way, you can’t do that.'”
