The leader of New York City’s public school teachers union said the union is withdrawing its support for Mayor Eric Adams’ ongoing effort to switch retired city workers from traditional Medicare to private Medicare Advantage plans, a change some retirees say would weaken their health care benefits.
The announcement by Michael Mulgrew, president of the American Teachers Union, indicates that the plan may lose the union support it needs to move forward, even if it is finally given the green light by the courts after a drawn-out legal battle. The changes in coverage could affect about 250,000 retirees. Adams’ office has argued that the move to Medicare Advantage plans would improve coverage across the board and save $600 million a year. That money could be used to pay for the 2020 Medicare Advantage plan. Funding health insurance For current city employees.
The city must get approval from the city’s Labor Board, an umbrella organization that represents the city’s unions. Mulgrew, the UFT president, is one of the board’s most influential labor leaders. His union represents about 200,000 members, and the board allocates votes to give larger unions more power.
But it remains to be seen whether other unions that have supported the health care plan will follow Mulgrew’s lead.
The committee previously voted to approve Aetna’s Medicare Advantage contract, and union leaders including Mulgrew have long defended the plan against opposition, even among retired members. Committee members were scheduled to discuss the UFT’s policy shift at a steering committee meeting Monday morning.
Mulgrew’s job title change came after he left the UFT. I voted last week It could remove union representatives who supported Medicare Advantage plans and create potential trouble for their union leaders.
“If you have the vote, you should listen,” Mulgrew said. “That’s what you do as a union leader.”
The ongoing dispute over the changes to the plan has “just created fear and anxiety and enough is enough,” he added.
Retiree groups who feared the Medicare Advantage switch would weaken their health insurance sued the city over the plan and won. Blocked by the judge Even after an appeals court upheld the ruling last year, the Adams administration isn’t giving up. Currently under petition The state’s highest court will hear the case.
Mulgrew sent a letter Sunday to Harry Nespoli, chairman of the city’s Labor Committee and president of Teamsters Local 831, which represents sanitation workers, informing him of his decision.
Nespoli did not respond to a request for comment Monday.
Henry Garrido, president of the 37th District Council, a union that represents workers in the city’s health care and other sectors, said in a statement Sunday that he and other council members will evaluate the move and consider next steps.
“The hard fact remains that health care for city employees and retirees needs funding, and without a viable solution like what’s in place now, premium-free benefits are in jeopardy,” Garrido said.
Retirees who oppose the plan worry it could lead to increased delays and denials of care and force some patients to change doctors. A federal investigation could determine whether Medicare Advantage plans are eligible to take action in 2022. More likely They require prior authorization before agreeing to cover a medical procedure or service, and are more likely to deny a request for coverage, than traditional Medicare.
But in its contract with the city to run Medicare Advantage plans, insurer Aetna agreed to limit prior authorization requirements. Union leaders like Mulgrew have also pledged to monitor how often health insurance is denied. The city and Aetna have tried to convince retirees that their benefits will not be cut.
The New York City Public Employees Retirement Association, which formed to oppose Medicare Advantage plans, celebrated the reversal of Mulgrew’s ruling on Sunday.
“It’s time for the city to come to its senses and end this senseless and illegal war on retirees,” the group said in a statement. “The New York City Public Employees Retirement Association is calling on the Adams administration to protect retirees’ health care rights and work with retirees to find real, sensible solutions to today’s health care challenges.”
City Law Department spokesman Nicholas Paolucci, in a statement about the UFT withdrawing its support for the Medicare Advantage plan, noted that the plan was negotiated with the city Labor Commission. He said the plan would improve retiree benefits while saving the city an expected $600 million.
“This is especially important now when we are already facing significant financial and economic challenges,” Paolucci said.
