Judge Rejects Petition Against Health Care Plan for City Employees

A judge at the Manhattan Supreme Court decided on Thursday to deny a request from a little-known advocacy group aimed at stopping the city’s new self-funded health care plan for city workers, managed by Emblem Health and United Healthcare.

Judge Lyle Frank found no merit in the motion from Hands Off New York Care to issue a temporary restraining order against the Adams administration’s plan. This plan, which the group claims is illegal, will proceed, with a court date set for December 1 for further arguments.

This ruling means the healthcare plan will continue as it undergoes a review by City Comptroller Brad Lander. A decision on whether to approve a deal providing free health care to 750,000 active employees and some retirees will be made by November 13. If approved, the plan is slated to take effect on January 1, following approval from the city’s union in September. It’s expected to save taxpayers about $1 billion each year.

Wanda Williams, director of Hands Off NY Care, expressed anticipation for the upcoming court arguments. She stated her group is “deeply concerned” about the city’s rapid development of a new plan that, she argues, compromises important state law protections for employees, retirees, and their dependents. Williams added that the process lacked transparency and meaningful community input, emphasizing their lawsuit aims to protect the health insurance access for over 750,000 New Yorkers.

In response, Liz Garcia, a spokesperson for City Hall, communicated the Adams administration’s satisfaction with the court’s decision, stating they believe the new plan is the best option for more than 1 million employees and retirees.

Hands Off NY Care claims to be a grassroots group that formed last summer to oppose this plan. Recently, they have engaged in various online advertising campaigns denouncing the deal as a betrayal. The group has even organized visual protests outside Mr. Lander’s office, urging him to reject the proposal.

Represented by Global Strategy Group, Hands Off NY Care has not yet disclosed its activities to the state’s lobbying watchdog. Global Strategy Group previously represented organizations that opposed a controversial overhaul of the state’s $9 billion home health care program.

Interestingly, Hands Off NY Care is being represented in their lawsuit against the city by Holwell Shuster & Goldberg LLP, known for its participation in health insurance litigation. This firm has previously represented major insurance companies, like AIG and Chubb, in notable legal battles.

The origins of the opposition to the health care agreements for city employees remain unclear. However, one well-known opponent is Anthem Blue Cross Blue Shield, which filed its own lawsuit last year against the city, United Healthcare, and Emblem Health regarding the new deal.

Under the new agreement, Anthem, which currently provides health insurance for city employees, will be replaced by United Healthcare and Emblem Health.

While Judge Frank ruled against Anthem in its claims, the details of the judge’s ruling are not publicly available, as the case file is sealed.