News Release: New York City Retirees Win Again!

Court Blocks Medicare Advantage Switch

The Retired Public Employees Association (RPEA), representing the interests of state and local government employees, applauds the recent decision of a New York Supreme Court judge to issue a temporary restraining order stopping the New York City’s plan to automatically enroll retirees in a Medicare Advantage Plan by September 1.

Edward C. Farrell, RPEA Executive Director, stated, “Public employees work their entire career with the promise and expectation that when they retire, their existing benefits will be preserved. However, Mayor Adams and the union’s proposal to move all retirees and beneficiaries out of traditional Medicare and switch them to a privately administered Medicare Advantage Plan would increase out-of-pocket expenses and reduce treatment options, since not all health providers accept Medicare Advantage.”

In issuing the injunction, Judge Lyle Frank noted, “As this matter deals with health decisions of an aging and potentially vulnerable population, mostly on fixed incomes, any lapse in care for these people could lead to deleterious impacts.”

Farrell concluded, “For those keeping score at home, the score is now Retirees 3 – the City and Unions 0. We anticipate the score will rise to 4-0 when the recent court challenge is adjudicated. We commend the City Council for standing up for the retirees through this ordeal.”