The City Council’s bipartisan Common Sense Caucus has filed an amicus brief with the New York State Court of Appeals in support of municipal retirees fighting to maintain their traditional Medicare supplemental health insurance.
The brief, submitted in a closely watched class action lawsuit, marks the third time the caucus has formally backed the retirees in their legal effort to block the city from switching their health coverage to a privatized Medicare Advantage plan. The court is set to hear oral arguments in the case on May 15.
The legal battle dates back to 2021, when the City announced plans to transfer approximately 250,000 retired civil servants from their existing Medicare supplemental insurance to a Medicare Advantage plan administered by Aetna. Retirees argue that the new plan offers inferior coverage and violates the city’s longstanding commitments to its workforce.
The Common Sense Caucus — comprised of Council Members Robert Holden, Kristy Marmorato, Vickie Paladino, Joann Ariola, Susan Zhuang, Inna Vernikov, and David Carr — voiced strong support for the retirees’ position in its filing.
“Plaintiffs-Respondents brought this action based upon the unlawful and illegal nature of the City’s attempt to strip away the rightful healthcare benefits that have been promised to the Retirees since the passage of Medicare,” the amicus states.
“The City promised the Retirees the proper health coverage, and now the City is seeking to take such coverage away.”
The caucus contends that the city’s move to force retirees onto a Medicare Advantage plan not only undermines the quality of healthcare provided but also violates both state and local law.
The brief urges the Court of Appeals to uphold the September 2023 ruling by New York County Supreme Court Judge Lyle Frank, which barred the city from requiring retirees to switch plans or seek their own coverage.
This legal saga has delivered a string of victories to the retirees, culminating in a significant December 2024 ruling by the Court of Appeals. In a unanimous decision, the state’s highest court declared that the city must pay up to a statutory cap for every health insurance plan it offers to both employees and retirees, effectively blocking the city’s effort to eliminate traditional Medicare coverage in favor of Medicare Advantage.
That ruling delivered a major setback to both Mayor Eric Adams and key municipal union leaders who had supported the switch, arguing it would save the city $600 million annually. Retirees have challenged that figure, claiming the cost savings come at the expense of promised benefits and quality care.
The controversial plan’s roots date back to the de Blasio administration, when the Municipal Labor Committee—composed of the city’s largest public sector unions approved the shift. Proponents argued the move would generate funds to support pay raises for active employees, but critics said it unfairly pitted current workers against retirees.
Despite continued pressure from city leaders and labor officials, retirees have stood firm in their opposition and continued to prevail in court.
With the next chapter of the legal fight approaching, the Common Sense Caucus’s amicus brief adds to growing political support for the retirees.
The outcome of the May 15 hearing could have lasting implications for retiree health coverage in New York City and the city’s broader obligations to its former public servants.
