Overview

• The seven‐judge panel unanimously overturned lower court injunctions and ruled that moving roughly 250,000 municipal retirees into a privately administered Medicare Advantage plan complies with city law.
• In a detailed opinion, judges found that annual HR summaries did not constitute a “clear and unambiguous promise” of lifetime supplemental Medicare coverage.
• The Advantage plan, administered by Aetna and fully subsidized by the city, is projected to save New York City hundreds of millions of dollars in health‐care costs each year.
• A pending City Council bill, Intro 1096, would mandate traditional Medicare coverage for retired city employees and could derail the administration’s implementation.
• The ruling has heightened political stakes in the mayoral and council races, with major unions split over the plan and lawmakers pressing for stronger retiree protections.