United Federation of Teachers president Michael Mulgrew recently made a surprising reversal by withdrawing support for controversial changes to health care plans for thousands of city retirees. The changes involved moving retirees from traditional Medicare coverage to Aetna-run Medicare Advantage in an effort to save costs for New York City. Critics raised concerns that this shift could result in higher costs and reduced benefits for the 250,000 affected retirees. The opposition to these changes was made evident in recent union elections when a dissident faction called Retiree Advocate defeated Mulgrew’s Unity Caucus by a significant margin, now controlling 300 seats representing retirees.
Mulgrew, who is facing re-election next year, communicated his decision to withdraw support for the Medicare Advantage program in a letter to Municipal Labor Council Committee chairman Harry Nespoli. The labor council, which represents all municipal unions, had previously backed the shift to Medicare Advantage, asserting that it would help maintain quality care for retirees. The proposal to switch healthcare plans was initially put forth by former Mayor Bill de Blasio, aiming to access federal subsidies and reduce the city’s healthcare costs for retired public workers. Mayor Eric Adams, de Blasio’s successor, also supports the proposed change.
Blaming the Adams administration for delays in negotiations over health care coverage for retirees, Mulgrew expressed discontentment with the lack of collaboration in providing premium-free health care to city workers. He accused the administration of prioritizing cost-cutting measures over the well-being of union members. The move to transition to Aetna-run Medicare Advantage faced legal challenges from an advocacy group representing retirees. Despite criticisms from individuals such as Rep. Alexandria Ocasio-Cortez, who referred to the program as a “cash cow” for private insurers, the City Law Department defended the plan and emphasized the potential annual savings of $600 million.
The City Law Department indicated that it would seek review from the Court of Appeals regarding the blocked transition to Medicare Advantage. The department maintained that the negotiated plan, supported by the Municipal Labor Committee, aimed to improve retirees’ current healthcare plans while achieving substantial cost savings. The Municipal Labor Committee planned to address the healthcare controversy in upcoming meetings. Harry Nespoli emphasized the need for Mulgrew to prioritize the interests of his union members and run the union effectively amid the ongoing discussions and developments surrounding the health care changes for retirees. The outcome of these discussions and potential legal proceedings could impact the future of healthcare coverage for city retirees significantly.
