UnitedHealthcare in legal fray over $34B NYC retiree coverage contract

UnitedHealthcare is among the payers involved in a legal battle over New York City’s decision to shift retirees’ healthcare coverage off of Medicare and onto a new contract with Empire Blue Cross Blue Shield and EmblemHealth’s joint venture, the Alliance.

Advertisement

The insurer filed a lawsuit Sept. 23, just days after Aetna issued its own against the city and labor leaders.

The lawsuit — brought by United HealthCare Services, Sierra Health and Life Insurance Company, Oxford Health Insurance and UnitedHealthcare Insurance Company of New York — also targets the city and the Office of Labor Relations. 

The suit alleges that the Alliance did not meet solicitation requirements, that the procurement process was changed mid-selection and that the process unfairly favored the Alliance. 

Up to $34 billion between five and 11 years is on the table to whomever manages the contract, according to the lawsuit.

At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 17–19 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.

Advertisement

Next Up in Payer

Advertisement

Comments are closed.