Teachers’ Union Withdraws Support for Medicare Advantage Deal Following Retiree Election Upset
The United Federation of Teachers (UFT) announced on Sunday that it has retracted its endorsement of the plan to transition retired city employees and their dependents to Medicare Advantage, a cost-saving healthcare initiative.
In a letter to the Municipal Labor Committee (MLC), which represents 102 public sector unions, UFT president Michael Mulgrew cited the city’s reluctance to engage sincerely in ongoing health care negotiations for active workers and pre-Medicare retirees as the reason for this decision. Mulgrew highlighted the strong opposition from retirees and a recent appellate court ruling blocking the transition as key factors in the union’s withdrawal.
“The courts have made their stance clear. Our members have voiced their concerns. We face significant issues with the city on this matter,” Mulgrew stated in a phone interview with THE CITY. He emphasized the unnecessary anxiety and fear being caused to New York City retirees.
This reversal is a significant development in the ongoing conflict over the proposed shift of 250,000 civil service retirees to a privatized Medicare plan. This change, initially negotiated under former Mayor Bill de Blasio, was intended to save the city $600 million annually to fund wage increases for city workers. However, a Manhattan judge halted the implementation last summer, and after an appellate court defeat, the Adams administration plans to escalate the issue to the state’s highest court.
Retirees, who initiated the lawsuit, argue that the switch from traditional Medicare breaches previous assurances about their coverage and would increase their healthcare costs while complicating the approval process for medical procedures. Despite these concerns, the Municipal Labor Committee, including the UFT, had approved a contract with Aetna to administer the new health plan last winter.
A spokesperson for Mayor Eric Adams did not comment on the UFT’s decision but reaffirmed the city’s stance: “The city’s plan, negotiated with and supported by the Municipal Labor Committee, would enhance retirees’ current plans and save $600 million annually,” stated Nicholas Paolucci from the city Law Department.
Mulgrew plans to encourage other MLC members to withdraw their support for the Medicare Advantage plan. Given the UFT’s significant influence as the city’s second-largest union, their stance could be pivotal.
The NYC Organization of Public Service Retirees, the lead plaintiff in the lawsuit, expressed gratitude for the UFT’s decision, urging the city to collaborate with retirees to find practical healthcare solutions.
When asked about alternative cost-saving measures to meet bargaining agreements, Mulgrew did not provide specifics, noting that any new strategies must be negotiated within the MLC. He was also noncommittal about supporting future Medicare Advantage proposals unless they adequately address the union’s concerns.
The union leader has been a central figure in the health plan negotiations, facing internal dissent over the issue even before the recent retiree election upset. Last year, a group of union retirees and active workers initiated a petition for an internal union referendum on any changes to healthcare coverage for retirees or active workers.
Harry Nespoli, head of the MLC, responded to the UFT’s reversal by convening an emergency executive board meeting and a steering committee session to discuss the next steps. Nespoli emphasized his role in maintaining unity within the MLC and expressed uncertainty about the future of the Medicare Advantage plan, pending further court decisions.
As the situation unfolds, the focus remains on finding a balanced approach that addresses the healthcare needs of retirees while managing the city’s fiscal challenges.
