Anthem’s Legal Battle Over City Health Contract Intensifies
An insurance company that provides health benefits to around 750,000 public employees and their families is ramping up its legal efforts to maintain a lucrative contract with the city as a switch to a more affordable competitor looms on January 1.
On Friday, Anthem Healthcare Assurance launched a lawsuit against the city and its chief labor negotiator, Lenny Campion. They are questioning both the insurer selection process and the legality of a new city-funded plan managed by UnitedHealthcare and Emblem Health.
Comptroller Brad Lander approved the contract with United and Emblem Health last week, even after another advocacy group campaigned for the city to reject what they labeled a “dangerous” plan.
In its ongoing lawsuit aimed at halting the transition, Anthem argues that moving to a self-funded plan—where the financial responsibility lies with the city rather than the insurer—is illegal.
Alison Forte-Quinlan, labor account manager at Anthem, stated in an affidavit that city employees could be impacted by this switch, labeling it a “hasty transition” that threatens employees’ access to essential care.
She emphasized, “If we don’t invest time and effort into setting up plans and procedures and systems to implement these services, there is a significant risk that needed care will be unnecessarily delayed or inappropriately denied.”
Anthem’s latest legal claim highlights that it assessed pricing and cost-cutting data from other bidders that the city allegedly failed to request from them.
Kasha Cartwright, an Anthem spokeswoman, expressed their long-standing commitment to serving New York City employees and their families, stating, “For nearly 80 years, we have proudly served New York City employees and their families, and we remain committed to protecting the access, stability and affordability our members expect.”
She added, “We remain focused on ensuring that City employees, retirees, and their families continue to have access to high-quality, affordable health care through a fair, accountable, and law-based process.”
The Adams administration announced the United-Emblem Health agreement last summer, which gained approval from the city’s union in September. This Health Insurance Savings Agreement is anticipated to save taxpayers about $1 billion annually. (It’s worth noting that the Mayor Eric Adams has dropped another part of the cost-cutting initiative after initially winning in court concerning Medicare Advantage for retired city employees, following public outcry.)
Anthem is facing significant challenges in retaining its lucrative contract. A Manhattan Supreme Court judge dismissed an earlier lawsuit, but the company is currently appealing that decision. Details of that case remain sealed; however, it allegedly includes claims of unequal treatment during the bidding process.
The same judge, Lyle Frank, recently dismissed a similar petition from Hands Off New York Care to block the contract change. This group ran extensive online advertisements and operated billboard trucks urging rejection of the agreement. A public hearing is scheduled for December 1.
This organization is registered as a non-charitable non-profit. According to state disclosures, Wanda Williams, a former political director of District Council 37 (the city’s largest public employee union that supports the United-Emblem Health deal), is compensated $20,000 annually for lobbying services.
As of yet, a spokesperson for Adams has not responded to requests for comments, nor has Mayor-elect Zoran Mamdani addressed questions regarding the lawsuit at a recent unrelated press conference.
