Overview

• On June 18, New York’s highest court unanimously ruled that the city did not promise to maintain traditional Medicare benefits, clearing the way for the shift to privatized plans.
• The ruling overturns a December 2024 appellate decision that had blocked Mayor Eric Adams’ move to enroll 250,000 city retirees in Medicare Advantage.
• The shift is part of a 2018 agreement aimed at cutting $600 million in annual healthcare costs by using federally funded private insurance plans.
• Retiree groups argue that Medicare Advantage reduces access and drives up costs, and they have urged elected officials to halt the transition.
• All major Democratic candidates for mayor oppose the plan, making final approval dependent on a City Council review and the incoming administration’s stance.