In a surprising about-face, Michael Mulgrew, president of the United Teachers Union, withdrew his support for controversial changes to health care for thousands of city retirees following a crushing defeat for his allied candidate in last week’s union elections.
Sunday’s policy reversal came on the heels of stiff opposition from city union leaders representing Mulgrew and other city employees who agreed to move retirees from traditional Medicare to Medicare Advantage, run by Aetna, in an effort to cut costs for the city.
Critics argue that shifting 250,000 urban retirees to privately run Medicare Advantage supplemental insurance could raise costs and reduce benefits.
The backlash against the reforms was on full display in last week’s union elections, when a rebel group called Retiree Advocacy won the seat representing retirees by a 63 percent to 37 percent margin over the United Caucus allied with Mulgrew. The Rebel Retirees Alliance now controls 300 seats representing retirees.
Unlike other large unions in the city, retirees are allowed to vote in UFT elections.
Mulgrew is up for re-election next year. I sent a letter He asked city Labor Council President Harry Nespoli about the union’s shift in position.
“The United Teachers Union is withdrawing its support for New York City’s Medicare Advantage program for Medicare-eligible retirees and for current health insurance negotiations for current and pre-Medicare retirees,” Mulgrew said in his letter to Nespoli.
The Labor Council, an umbrella group representing all municipal unions, supported the switch from traditional Medicare to Medicare Advantage, arguing it would preserve quality health care for retirees.
The health care replacement plan, first proposed by former Mayor Bill de Blasio, was intended to help the city take advantage of an estimated $600 million in federal subsidies available for Medicare Advantage programs and to help New York City reduce the costs of providing health care to retired public employees.
De Blasio’s successor, Mayor Eric Adams, also supports the switch.
Mulgrew blamed the Adams administration for the slow progress of current negotiations over retiree health care, saying, “We no longer believe it is in the interest of our members to participate in that process.”
“It has become clear that the current administration is more interested in cutting costs than working in good faith with us to provide quality health care to city workers. We will fight hard as we have always done to preserve benefits and provide premium-free, quality health care to all our members, but we need partners who will work with us,” the teachers union president said.
“We will not allow the city to waste any more time and demand that they put workers first.”
The switch to Medicare Advantage, run by Aetna, was blocked in court by advocacy groups representing retirees.
The plan also drew criticism from Democratic Socialist Rep. Alexandria Ocasio-Cortez, who called it a “cash cow” for private insurance companies.
But city law officials said Sunday they are asking the state’s highest court, the Court of Appeals, to review the case.
“The City’s plan was developed in close consultation with and with the support of the City Labor Commissioner, and we have been clear that it will improve upon retirees’ current plans and save them $600 million a year, which is especially important at a time when we are already facing significant financial and economic challenges,” a spokesman for the Department of Law said.
The city Labor Commission is scheduled to discuss the health care dispute at its meeting Monday.
“[Mulgrew] “He has to do the right thing for the union. He has a duty to run the union,” Nespoli said.
