Overview

• The New York State Court of Appeals unanimously ruled on June 18 that the city may legally move roughly 250,000 municipal retirees from traditional Medicare with city-funded supplements into private Medicare Advantage plans.
• On June 20, Mayor Eric Adams announced he would not implement the switch, pointing to widespread retiree concerns raised at town halls and public forums.
• The shift was originally agreed to in 2021 by Mayor Bill de Blasio and municipal unions as part of a deal to cut $600 million annually from the city’s healthcare budget.
• Retiree groups and advocates warned that Medicare Advantage would drive up out-of-pocket costs, narrow provider networks and undermine care quality.
• City Council members are considering legislation to bar future administrations from altering retiree health coverage and candidates in the mayoral race have taken clear stances on the issue.