New York City will not switch its retirees to cost-cutting Medicare Advantage healthcare plans even after it got a judicial green light, Mayor Eric Adams announced Friday.
Two days after New York’s top court ruled the city could go ahead with its plan to transfer city retirees away from traditional Medicare and to privatized Medicare Advantage, Adams said he would not change health plans for retirees. The decision comes after a yearslong political and legal battle where retirees argued the city was breaking its promise and providing them with subpar care.
Adams said the city’s decision was a result of input from town halls and public events, where retirees argued they would face higher costs and declining care due to the profit-centered approach of Medicare Advantage.
“We have heard concerns from retirees about these potential changes at numerous older adult town halls and public events, and our administration remains focused on ensuring that New York City remains an affordable place to live,” Adams said in a statement. “Thankfully, we have found other ways to address health care costs while providing quality health care coverage for our city’s workers, and we have decided not to move forward with the Medicare Advantage plan at this time.”
Marianne Pizzitola, president of the NYC Organization of Public Service Retirees, which led the fight against Medicare Advantage, told amNewYork she is in disbelief and overjoyed at Adams’ decision.
“I still can’t believe that this is happening,” Pizzitola said. “But I want to make sure that no retiree and no City Councilperson or administrator ever has to go through this again. There should be no question about the benefits that were promised to people and that the city should uphold the promise that it made to people when it attracted them to come to work for the city.”
Pizzitola said the state Court of Appeals’ decision against retirees was based on misunderstandings, including that city retirees are not actually represented by a union.
Adams’ decision, which amNewYork reported first, comes as New York City faces an affordability crisis and officials are concerned about emigration from the city. All Democratic candidates for mayor have expressed some level opposition to the Medicare Advantage plan, including the frontrunners, former Gov. Andrew Cuomo and Assemblymember Zohran Mamdani.
Pizzitola said the NYC Organization of Public Service Retirees will continue to advocate for City Council legislation, Intro 1096, that would codify city employees’ Medicare guarantee.
“Retirees need protection from benefits being diminished,” Pizzitola said. “That’s my hard stop, and I’m not going to stop advocating until I have that.”
In their legal and political battle, city retirees collaborated with various unions, which Pizzitola said were invaluable to the effort.
“I thank them because we are them and they recognize one day they will be us,” Pizzitola said.
Adams initially proposed Medicare Advantage as a way to save the city money. Now, officials said, the mayor’s office found additional ways to cut health care costs, including negotiating with insurance companies on the plans of current city workers and retirees below the age of 65.
The city’s Friday decision does not prevent it from switching retirees to a Medicare Advantage plan in the future, and the Court of Appeals decision remains intact.
Adams said the Court of Appeals decision is important for the city’s future actions, helping officials respond to changing environments.
“I am grateful to the Court of Appeals for recognizing, earlier this week, that the city has a legal right to offer alternative health care coverage plans to retirees and for acknowledging that we must have flexibility to adapt our policies based on changing times,” Adams said. “This is an important precedent that will allow the city to modify plans in response to evolving conditions.”
The mayor’s office pointed to statements Adams made in the past to demonstrate that he has always tried to balance saving the city money with protecting retirees.
“I don’t want to hurt my retirees because I’m a retiree,” Adams said during a Jan. 15 town hall. “And we will find a solution to the issue. And I don’t want to kick the can down the road like it was kicked down the road and dropped into my lap.”
In his Friday statement, Adams said he would continue to work with city unions to reach an amicable solution.
“We have informed union leadership that we are pursuing other avenues for improving health care for city workers that will provide even better outcomes, and we look forward to continuing to work with our partners on the best path forward,” Adams said
