Overview

• Mayor Eric Adams announced Friday that he will not implement the State Court of Appeals–approved switch of roughly 250,000 municipal retirees from traditional Medicare to Medicare Advantage plans.
• The State Court of Appeals issued a unanimous decision on June 18 affirming the city’s right to change retiree coverage and overturning lower court rulings that had blocked the move.
• The Organization of Public Service Retirees and key municipal unions argued that Medicare Advantage plans would raise out-of-pocket costs and limit access to preferred doctors.
• The proposal was first developed under former Mayor Bill de Blasio and supported by Adams as a measure to save the city about $600 million annually in healthcare spending.
• Adams said the administration will instead explore alternative measures to contain healthcare expenses while City Council members consider legislation to protect retiree benefits from future changes.