New Developments on Retirees and Medicare

     A week ago, on July 6, Judge Lyle Frank of the Supreme Court of the State of New York issued a Temporary Restraining Order against New York City’s attempt to implement a new healthcare plan for retirees which would force us off Medicare and on to Aetna’s Medicare (Dis)Advantage Plan.

     His argument began by saying that retirees won on the merits of the case, since the city had promised its workers that they would receive a Medicare supplemental plan when they retired so it could not now re-neg on that promise.  The city used the word “will” in the Administrative code, so Judge Frank argued that is “to this Court a promise that is forward looking.”  Also, New York City promised that “the City will pay the entire cost of health insurance coverage for city employees, retirees, and their dependents.”  Retirees worked for city agencies, hospitals, schools and universities and as police, firefighters, and sanitation workers as well.

     Then, the court held that many retirees do not know if their doctors will accept the new Aetna plan.  Since many of the almost 300,000 city retirees are “elderly and infirm” AND the attorney for Aetna acknowledged that “there would very likely be situations where medical care deemed to be needed by a doctor for a retiree could be turned down,” the judge concluded that “irreparable harm would result.  There can be no more specific irreparable harm than this.” 

     Therefore, everything is put on hold.  Instead of having to decide whether to go with Aetna or pay for the Medicare supplemental plan ourselves (which would cost about $6000 a year) by July 10, we now can wait and see.  The implementation of this plan on September 1st is also postponed.

     The city and Aetna will almost certainly appeal this decision.  But a lawyer friend has told me that this opinion “is very strong.”  In the meantime, we need to support the retirees’ attorneys and be ready to swing into action again.  But it’s a great decision and a weight has lifted off our shoulders.  It’s difficult enough being old (and at least 10 retirees are over 100) without having to figure out new health plans and programs.  La lutta continua!