COURT VICTORY AGAINST NYC PRIVATIZATION OF MEDICARE
What Municipal Retirees Can Do Now
by Julie Schwartzberg of Cross-union Retirees Organizing Committee and Board member of Physicians for a National Health Program - NY Metro ( www.pnhpnymetro.org )
On March 3, 250,000 New York City retirees had a big "win" in their lawsuit against the city. Manhattan Supreme Court Justice Lyle Frank ruled that the City could not require retirees to pay a $191 penalty if they decided to keep their traditional Medicare, and opt out of the diluted Medicare "Advantage" Plan that they were being forced into.
The lawsuit was filed in August 2021 by the New York City Organization of Public Service Retirees, arguing that the City plan was inferior, subjecting retirees to denials and delays, and additional fees. A news story summarizing the ruling is here.
So for now, retirees can keep their traditional Medicare and not pay a penalty, However, the City is appealing the Court decision. and WE ARE URGING ALL CITY RETIREES TO OPT OUT anyway. The City is claiming that opting out is not necessary because the Medicare Advantage plan will not start on April 1 as scheduled. However, we can’t be sure what will happen in the future. In addition, the more people opting out, the more our message is loud and clear: WE DO NOT WANT AN INFERIOR, PRIVATIZED HEALTHCARE PLAN.
If you are a New York City Retiree, please click on the link https://nycretirees.org/opt-out and follow the opt out instructions.
It takes 5 minutes to opt out online – less if you type fast. It’s a simple form. You will need your Medicare and Social Security numbers, so have those handy. You have to fill out a separate form for yourself and for each of your Medicare-eligible dependents. Here’s the link: https://nyc-ma-plus.empireblue.com/optout. You can no longer opt out by telephone. If you want to mail in your opt-out form, go to https://nycretirees.org/opt-out for instructions.
If you know a City Retiree, please send this information to them, and spread the word.
For more questions, write the Cross-union Retirees Organizing Committee: [email protected]
For additional updated information: nycretirees.org
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We Won! Sort of . . .
An Update from CROC (Cross-union Retirees Organizing Committee)
The Judge’s Decision
On March 3, 2022, Judge Lyle Frank issued his decision, essentially ruling in our favor. You can view the entire case filings here. Relevant to our immediate situation is file 216, pp. 2–4, which reads in part:
However, based on this Court’s reading of New York City Administrative Code Section 12-126, so long as the respondent is giving retirees the option of staying in their current program, they may not do so by charging them the $191 the respondent intends to charge. … Based on the foregoing, it is therefore ORDERED that the preliminary injunction previously put into place by this Court is lifted, except that:
- Enrollment in the Medicare Advantage Plan may not occur until at least April 1, 2022, and that retirees shall have the option of opting out of the Medicare Advantage Plan for not less than three months following the effective date of the Medicare Advantage Plan;
- The respondent is permanently enjoined from passing along any costs of the New York City retirees’ current plan to the retiree or to any of their dependents, except where such plan rises above the H.I.P.-H.M.O. threshold, as provided by New York City Administrative Code Section 12-126; and
- The respondent shall ensure that all retirees and dependents of such retirees pay the deductible for only one plan for the calendar year 2022.
Opt Out Now!
By the time the decision came down, 50,000 retirees had already opted out, and the numbers have only gone up since then. The NYC Organization of Public Service Retirees (OPSR), the group that has led this legal fight, is urging everyone who is against the Medicare Advantage Plan (MAP) to opt out now. Why? Opting out guarantees that you won’t get caught in the net if the MAP suddenly returns zombie-like after April 1. More importantly, it reinforces the message to the City and the Municipal Labor Committee (MLC) that the MAP is deeply, deeply unpopular.
It takes 5 minutes to opt out online – less if you type fast. It’s a simple form. You will need your Medicare and Social Security numbers, so have those handy. You have to fill out a separate form for yourself and for each of your Medicare-eligible dependents. Here’s the link: https://nyc-ma-plus.empireblue.com/optout. You can no longer opt out by telephone. If you want to mail in your opt-out form, go to https://nycretirees.org/opt-out for instructions.
What Comes Next?
Now we’re in limbo. Even though the judge has ruled in our favor, the City filed an appeal the very next day. An appeal could take months … or weeks. The judge’s decision could be upheld … or overturned. The City could try to modify the Administrative Code so that the language that led to the judge’s decision no longer apply. We don’t know. But what we have now is a breather—which means we have to keep on organizing.
Spread the word!
Tell all your fellow retirees about this fight, post it on your Facebook page, call up your former coworkers and let them know what’s going on. Link them up to CROC so we can keep them updated.
Reach out to the “actives”! The City and some of the union bosses may try to drive a wedge between retirees and those who are still on the job – the “actives.” We mustn’t let this happen. This isn’t about wages versus health care – this is one fight. It’s about our rights as workers, both right now on the job and in our justly earned retirement. In the coming weeks, CROC will organize webinars to educate the actives so they can fight back within their own unions to keep the future benefits they deserve. If you’re in touch with people still on the job in your union, put them in touch with CROC so we can all join forces.
That’s all for now, folks. We’ll be in touch when we have more news.