A New York judge ruled that New York City cannot penalize retirees who decline to participate in a controversial new retiree Medicare Advantage plan provided by Emblem Health and Anthem subsidiary Empire Blue Cross Blue Shield, according to the New York Daily News.
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.'"