Mayor Eric Adams announced he will not move forward with a contentious effort to cut costs by shifting retired city workers to a Medicare Advantage plan, bringing a sudden end to a four-year saga.
"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 Friday.
Just two days earlier, the state Court of Appeals ruled in City Hall’s favor in a lawsuit over the Medicare Advantage transition, handing Adams a rare win in the long legal battle to implement a plan he inherited from former Mayor Bill de Blasio.
But Adams said the city had found other ways to address health care costs.
He did not offer specifics, but City Hall announced a plan earlier this month to save $1 billion annually by designing a new health coverage option with EmblemHealth and UnitedHealthcare for the majority of active city workers.
“Since the mayor has decided not to proceed with the Medicare Advantage plan, this fulfills the unions’ obligation to generate Medicare-eligible retiree health care savings,” Henry Garrido, executive director of public employee union DC 37, said in a statement. “The savings from the abandoned plan must not come at the expense of our members.”
Many elected officials applauded Adams’ decision, which comes shortly before a planned kickoff event for his reelection campaign.
Local lawmakers and municipal retirees plan to celebrate the news today in City Hall Park, but they are already eyeing their next steps: continuing to lobby for legislation that would permanently protect their health benefits.
The bill, which is spearheaded by Council Member Christopher Marte, has 17 co-sponsors.
"While this decision is welcome, we have to codify our success," Marte said in a statement. "Our retirees deserve certainty, dignity, and care—not corporate shortcuts and backroom deals."
ON THE AGENDA:
— Thursday at 11 a.m. The state will hold its annual forum on the 1332 waiver.
— Thursday at 3 p.m. NYC Health + Hospitals’ board of directors meets.
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