NYC loses appeal in court battle over Medicare Advantage Plan for retired municipal workers [New York Daily News] - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
November 22, 2022 Newswires
Share
Share
Post
Email

NYC loses appeal in court battle over Medicare Advantage Plan for retired municipal workers [New York Daily News]

New York Daily News, The (NY)

Mayor Adams’ administration suffered another setback Tuesday in its effort to shift retired city workers into a privatized Medicare plan as a Manhattan appellate court upheld a ruling that deemed a key part of the plan unlawful.

For nearly a year, Adams’ administration has attempted to enroll the city’s roughly 250,000 retired workers in a Medicare Advantage Plan, which would allocate as much as $600 million in municipal budget savings each year thanks to federal subsidies and a partnership with a private health insurance provider.

The savings — which Adams has described as a critical hedge against looming city budget deficits — are contingent on the administration being able to include a $192 monthly penalty on any retiree who opts to stay on their traditional Medicare coverage instead of accepting the Advantage plan.

But Manhattan Supreme Court Justice Lyle Frank ruled this past March that the financial penalty ran afoul of a local law called 12-126 that requires the city to provide retirees with premium-free health coverage for life. Adams’ administration appealed the ruling, contending it was complying with the law as long as it offers the Advantage plan free of charge.

On Tuesday morning, a panel of judges on the Supreme Court’s appellate bench rejected the argument from Adams’ team and ruled Frank’s decision should stand.

“Nothing in the statutory text or history supports (the administration’s) interpretation,” the two-page ruling stated.

The decision hands a victory to NYC Organization of Public Service Retirees, a grassroots group of retired EMTs, firefighters, cops and other city workers who have argued that an Advantage plan would water down their health coverage. They’ve pointed to federal studies that show Advantage plans can block beneficiaries from “medically necessary care” while pressing the case that traditional Medicare is more reliable.

The retiree organization filed the lawsuit that prompted Frank’s initial March decision, and Marianne Pizzitola, an ex-FDNY EMT who serves as the group’s president, hailed the appellate court for ensuring “justice prevailed in a true David vs. Goliath story.”

“This attack on our most vulnerable population must end,” Pizzitola told the Daily News. “Senior citizens and 9/11 responders are not for sale.”

An Adams spokesman did not immediately return a request for comment.

The appellate setback for Adams may not be the end of the Medicare Advantage saga, though, as his administration has previously said it could implement the cost-saving plan despite an adverse court ruling.

The first contingency Adams’ team has said it could opt for would be convincing the City Council to amend 12-126 in such a way that Frank’s ruling would become moot, paving the way for implementing the Advantage plan, replete with its $192 monthly opt-out fee.

United Federation of Teachers President Michael Mulgrew, who serves as vice chair of the Municipal Labor Committee, which supports Adams’ Advantage push, said the appellate ruling should spur Council members into action on the 12-126 amendment.

“The court’s decision makes it clear ... the City Council must change the city’s Administrative Code,” Mulgrew said in a statement.

However, a senior Council source said no member of the body had, as of this week, even expressed interest in introducing a bill on the matter. Retirees opposed to Advantage, meantime, have for months flooded Council members’ inboxes with emails urging them not to act on the administration’s request for a 12-126 tweak.

In a letter to the Municipal Labor Committee last month, Renee Campion, Adams’ labor relations commissioner, acknowledged the administration had not secured any support from the Council on the 12-126 proposal.

Campion also wrote that, barring a sudden shift in momentum in the Council, the Adams administration would likely move ahead with a second option: Instructing an independent arbitrator overseeing the healthcare dispute to implement Medicare Advantage as the only plan available to municipal retirees. It’s unclear how that proposal is impacted by the appellate ruling.

In her letter, Campion stressed that the administration will try “in any way that we can” to implement Advantage, arguing it’s a critical savings mechanism when the city government is staring down a projected $6 billion budget deficit by 2026.

Pizzitola said she expects the battle to continue.

“The fight continues as we are sure the city and the Municipal Labor Committee will try any tactic to further take away our benefits,” she said.

©2022 New York Daily News. Visit nydailynews.com. Distributed by Tribune Content Agency, LLC.

Older

Aflac: How to Choose the Right Life Insurance Beneficiaries

Newer

NYC loses appeal in court battle over Medicare Advantage Plan for retired municipal workers [New York Daily News]

Advisor News

  • Help child-free clients plan for their later years
  • When new investment trends emerge, Gen Z is most likely generation to be first in
  • Could ‘plain English’ become an advisor’s secret weapon?
  • IRI urges Senate action on 403(b) parity legislation
  • Three estate planning ideas to protect your clients and their wealth
More Advisor News

Annuity News

  • NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
  • NAIC working group pressed to accelerate annuity illustration overhaul
  • State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
  • Wink: Annuity sales post strong Q2, led by MYGAs and structured products
  • Legacy Marketing Group partners with Malibu Life USA for annuity launch
More Annuity News

Health/Employee Benefits News

  • Study projects $4 billion Medicaid hit to hospitals
  • FRALICK'S RECORD: OPPOSING THE ACA AND FOOD ASSISTANCE PROTECTIONS, SUPPORTING TRUMP, AND NEVER TRYING A CRIMINAL CASE
  • New York approves small, individual insurance plan rate hikes for 2027
  • Findings on Heart Failure Detailed by Christine DeJong and Co-Authors (Medicare Accountable Care Organizations: Clinical Performance for Patients With Heart Failure): Heart Disorders and Diseases – Heart Failure
  • $4B at stake in Medicaid change
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • TDCI reminds consumers to focus on future during Life Insurance Awareness Month
  • TDCI reminds consumers to focus on the future during Life Insurance Awareness Month
  • AM Best Affirms Credit Ratings of Zurich Insurance Group Ltd and Its Main Rated Subsidiaries
  • Best’s Market Segment Report: AM Best Maintains Stable Outlook on China’s Non-Life Insurance Segment
  • Understanding Nonequity Split-Dollar
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.