Judge blocks effort to put retired NYC workers on Aetna-run health plan

An attempt by New York City to switch existing medical coverage for its retired employees to a Medicare Advantage plan administered by Aetna has been blocked by a Manhattan Supreme Court Judge, according to court records.

Mayor Eric Adams' administration had argued that the switch, which the New York City Office of Labor Relations hoped to institute as of Sept. 1, would save more than $600 million a year in health costs.

A lawsuit brought by the New York City Organization of Public Service Retirees argued that the switch to the Aetna Medicare Advantage Plan would change deductibles, result in higher out-of-pocket and copay costs, and eliminate or change contract-defined benefits for more than 250,000 retirees, including firefighters, cops, correction officers, teachers and sanitation, parks and health care workers, among the myriad former employees.

In his decision, Manhattan Supreme Court Judge Lyle E. Frank said New York City is “permanently enjoined from requiring any City retirees, and their dependents from being removed from their current health insurance plan(s)” adding that the City also cannot require retirees to “either enroll in an Aetna Medicare Advantage Plan or seek their own health coverage.”

In a statement the Mayor's office vowed to appeal the judge's decision.

"This Medicare Advantage plan, which was negotiated closely with and supported by the Municipal Labor Committee, would improve upon 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," the statement said. "This decision only creates confusion and uncertainty among our retirees.”

Marianna Pizzitola, president of the New York City Organization of Public Service Retirees, disputed the savings to the city and said putting Medicare in the hands of Aetna would hurt retirees and employees, including a large number living on Long Island.

"This has a long lasting affect, no matter where you live or if you're active or retired," Pizzitola said. "This ruling means the city cannot force us into a private Medicare plan and we can keep our doctors, hospitals and traditional retirement plan in federal Medicare."

The retirees organization said the city has guaranteed employees a city-funded health care system through a combination of Medicare plus Medicare “supplemental” insurance, which covers health care expenses that Medicare does not.

"Because of Justice Frank’s well-reasoned decision, hundreds of thousands of senior citizens and disabled first responders will be able to continue receiving the medical care they desperately need and to which they are entitled," said Jake Gardener, a Manhattan-based attorney for the retirees.