Wednesday, April 5, 2023

RetireeTeacherChapter Meeting - the Horror of Holding up a sign, Sorkin Is Proud to Sign Non-Disclosure, The @uftnyc #MLC might be coming for Active workers - APRIL 11 RALLY, Sign the Healthcare Referendum Petition

Rally!! April 11th. Noon. City Hall


Wednesday, April 5, 2023 - Happy Passover 

I'm rushing to get this our before my wife wakes up with the list of honey-do's in prep for 30 of her family members coming for tonight's seder. 

Retiree Advocate was out in force before and during yesterday's Aetna screw-you retirees presentation at the monthly chapter meeting and we got loads of people signing our petition for a referendum on healthcare, now approaching 5,000, one quarter of what we need according to the constitution. Entire schools are rolling in, which means active members see the threat to their own healthcare with an RFP (Request for Proposal) out there while Sorkin hides behind his non-disclosure. At the Exec Bd when he said he was so proud of signing that I wanted to ask why sign it? 

Toward the end of the meeting, a few activists stood in the back of the room and held up some signs and RTC CL Tom Murphy went nuts, threatening to end the meeting and yelling for security to remove them. 

LeRoy Barr in the house.


Oh, the horrors. I took this photo in the hall. Note the photo of Albert Shanker looking on.
So, I have a lot to report but not enough time.
 The meeting was a boring Aetna presentation. I learned from one of the ladies attending how Aetna cheats to make even more money out of the Medicare system by changing your healthcare descriptions to upcode you for illnesses you might not even have. Imagine going to a hospital and your record is does not accurately reflect your true health?

Geof Sorkin: I have NDAs. I am proud that I will not reveal who the potential bidders are.

Yes, UFT Welfare Fund head Sorkin is proud to sign Non Disclosure Agreements as an excuse to withhold information from UFT members who pay his high salary. 

The UFT has refused to disclose or publicly discuss the RFP except in the vaguest details (there are apparently four bidders left but bet heavily on Aetna). This is the original RFI (Request for information), which proceeds the RFP:

They will probably try to save money by more creating aggressive levels of hospital and doc networks with higher copays for more expensive hospitals and doctors. The City wrote an article about the RFP:


PSC covers it: “You should also be aware that the City is entering into negotiations for a new Comprehensive Benefits Plan (CBP) to replace GHI, the plan in which most of PSC’s active employees are enrolled, starting in 2024. The intent is to keep the CBP premium-free while saving 10% on the current costs. MLC union representatives have not seen the proposals, but they are under review by the MLC executive committee and health technical committee”

Some MLC minutes were leaked in February with more details:
 

Healthcare, Tucker Carlson, and Maternal Mortality – UFT Executive Board Minutes, 3-27-2023

Tonight was mostly about healthcare. Kate Connors came to the Open Mic to talk about the New York Health Act. Ed Calamia asked about Aetna’s ongoing MAP fraud case, to which leadership answered it would not affect our deal. I asked about what specific ‘cost savings’ were being discussed by the vendors in the new in-service RFP, but didn’t get many details.

Nick: Want to ask a question. We’re hearing about an RFP with four potential providers to potentially replace GHI at a lower cost. Not asking about the four respondents – asked last week and wasn’t answered, though you’re free to tell us. However, we know how some of the cost savings have been realized for retirees – like prior authorizations. We also know about some of the cost savings we’ve already realized for in-service – like forcing first year teachers onto HIP or adding huge copays in GHI for most Urgent Cares – 15 bucks to 100 bucks since 2016. What types of ‘cost savings’ are these four vendors suggesting to make the cost savings? What types of copays? What types of networks – diminished? New prior authorizations?

Geof Sorkin: I have NDAs. I am proud that I will not reveal who the potential bidders are. Benefit design: a number of things: looking to replicate to GHI, but also looking across the country and seeing how we could leverage things. We have not met with any of the bidders. Michael has said we’ve identified 4. One of the complexities is we are looking at the info they’ve provided and it’s not always an apples to apples comparison.


Due to the Moratorium Act, @uftnyc couldn’t screw retirees without doing the same to in service workers or he’d face litigation! We hear this week begins negotiations for the in-service workers healthcare plan and it’s been said they are eliminating all health care plans, except for HiP HMO and replacing the Emblem plan with Aetna. That’s it! First they came for retirees. Now they come for you....NYC Organization of Public Service Retirees Inc

Tuesday, April 4, 2023

+4.5K Signees. Strong & growing. -Petition for UFT Healthcare Vote

 

+4.5K Signees. Strong & growing. leadership, let’s be clear. Wages, pension, & healthcare are mandatory subjects of bargaining. We have a right to have a say in these matters. All groups are signing, actives, retirees, Sign now - hcpetition.educators.nyc
 
No MORE Unilateral Decisions on COVID MOAs, Vaccinee, Healthcare.

Mr. Mulgrew, TEAR DOWN THAT WALL
 
 

 
=================
 
 
Greetings Retirees  & Retirees In Training! 

 Today we are emailing Comptroller Brad Lander and telling him to object to registering the AETNA Contract!   An easy email, that goes to our new Action Network site!  And then send one to City Council!  THERE ARE LOTS OF LINKS OF HOMEWORK ASSIGNMENTS IN THIS NEWSLETTER!


AND SAVE THE DATE!   TUESDAY APRIL 11th,City HALL.   More to follow!  BE READY FOR  A PROTEST/RALLY! 

HIS IS A CALL TO RALLY FOR US TO BE HEARD! TIME IS OF THE ESSENCE!  AFTERWARDS, WE WILL BE ATTENDING THE CITY COUNCIL MEETING & URGING THEM TO INTRODUCE OUR PROPOSED BILL!!
BRING YOUR LOVED ONES, THIS AFFECTS THEM TOO!   THIS RALLY IS FOR RETIREES AND RETIREES IN TRAINING (In-service/active workers).  THIS IS YOUR HEALTHCARE THE MUNICIPAL LABOR COMMITTEE - DOMINATED BY THE UFT AND DC37, AGREED TO DIMINISH.   ELIMINATING ALL OUR HEALTH PLANS AND FORCING US INTO MEDICARE ADVANTAGE IS ANTI LABOR AND UN-AMERICAN.  MEDICARE IS A PUBLIC HEALTH BENEFIT!    

BE THERE WITH US! 


Dress comfortable, bring a snack, and be prepared to be with us all day.   We have the rally and then the Council meeting.

AETNA has been sending out their mailers on the new plan.   We are aware.   The contract is NOT registered yet, and we still have litigation to file...   BUT... you MUST call your doctors and hospitals to see if they will accept the AETNA Medicare Advantage PPO plan.   You want to ask if they are in network and if not, would they accept the plan for payment.  If your doctor is NOT in Network or advised they WILL NOT take it for payment, please
click here to complete our survey!


HOMEWORK BEGINS!

 

*******************************************************************


Whenever you receive documents or a package from OLR or AETNA, please mark it with the date it was delivered to you.  Our attorneys are working on our case ahead.  So please be patient, do your email assignments!

LASTLY..... Are you an active or retired UFT member?   If so, read this, if not, please disregard.

From the NYC Educators:
We are tired of leadership's unilateral decisions and givebacks that have hurt and diminished our health benefits since the ill-fated, non-transparent 2014 and 2018 labor contracts which bartered "cost savings' to the City in exchange for our hard-earned healthcare.  Moreover, there are sound alternatives they have refused to explore that would help bring down costs.

As we approach a new labor contract deal, more givebacks have been negotiated away by the present leadership. Retirees are now being forced into a privatized Medicare Advantage plan with limited networks, life-threatening pre-authorizations and a labyrinth for seniors to seek reimbursements for any uncovered care.  In addition, a new, undisclosed and "no-frills" cheaper plan is now being devised to replace the premium-free GHI plan most active members have relied on for decades.

Our present and future healthcare, and the healthcare of our families, is not for sale.


We say: LET US VOTE, NOW!
Click above for the full story and to sign the petition.
 

T


Friday, March 31, 2023

Fearmongering and Loathing, Unity suppression of Petition calling for Health Care referendum sparks more interest, Hysterical Attacks by Leaders making 200K on Critical Voices Grows

Mailed petitions after only a few days.

 
UNITY ATTEMPTING TO SUPPRESS OUR LAWFUL PETITION CALLING FOR A MEMBER VOTE ON CHANGES TO HEALTHCARE - Unity is in panic mode over our petition to get a member vote on any healthcare changes. Thousands have already signed.
 
Friday, March 31
The photo above is what I picked up in my mailbox on Monday. Last night I got a message from my building saying my mailbox was full and mail had to be moved to the front desk. I'm heading in early to pick it up before going to the healthcare rally at City Hall at noon.

In case you hadn't hear, there is a petition which is scaring the hell out of the leadership despite the fact we need 20,000 signatures to force a referendum on health care changes, a seeming impossible number unless it goes viral. And yesterday, in an attempt to suppress the petition, Unity Caucus operatives only helped spread the word, as James pointed out.

Even some of our people who were skeptical at first, are signing on. The other day some New Action retirees went to a middle school and spoke at 4 lunch hours and got a great response. 

In the meantime, Unity and the UFT high-priced leadership has gone nuts attacking the opposition and making accusations. Arthur has a reponse

Michael Mulgrew Is the Fearmonger-in-Chief 

 As does Nick (Who is political? A Further Note on the 3-27-23 Executive Board Meeting (and its aftermath)

and James (UNITY AT EXECUTIVE BOARD VOTES AGAINST IMPROVING PARENTAL-FAMILY LEAVE BENEFITS)

An Update as Educators of NYC reports: Day 10 of the @UFT healthcare referendum petition drive & we are at ~ 2300-2400 signees. The petitions continue to pour in ☔️ Let’s let leadership know we are union strong and that we are the union. Please share the petition with your colleagues in your chapter. hcpetition.educators.nyc

 

Tuesday, March 28, 2023

WE ARE NOT FOOLS, MAYOR ADAMS!: Pre-April Fools Rally Friday March 31, noon, at City Hall

Media Advisory for March 31, 2023

FOR IMMEDIATE RELEASE

For Planning Purposes: Friday, March 31st , 2023

Contacts: Lauren Parker, lauren.parker@berlinrosen.com

                     Sarah Shapiro, sarahmorah@gmail.com


Municipal Workers to Hold Emergency Rally to Express outrage at Mayor Adams’ decision to force

250,000 Retirees into Medicare Advantage

The rally is April Fools Day-themed: “Mayor Adams, Don’t Try to Fool Municipal Retirees”

What: Municipal workers from across the city will rally at City Hall the day after Mayor Adams’ signed a contract that sold out 250,000 retired city employees and their dependents by forcing them into an inferior Medicare Advantage Plan. Retirees are here to tell Mayor Adams that they want Medicare Not Profitcare.

The theme of the rally, which takes place the day before April Fool’s Day, is “Mayor Adams, don’t try to fool municipal retirees!" The rally is organized by the Cross-Union Retirees Organizing Committee (CROC) and the Professional Staff Congress, the union representing active and retired faculty and professional staff at CUNY.

Visuals Will Include:

  • Speaking program of retirees, municipal workers, union leaders and elected city officials including Council Members Christopher Marte, Alexa Aviles, Kristin Richardson Jordan.

  • A chanting crowd of retired and active workers with music, noise makers, signs, crutches, walkers, and canes.

  • April Fool’s Day themed signage, “We’re Not Fools” hats, and slogans.

When: Friday, March 31st at 12pm

Where: Outside City Hall Park on Broadway and Murray Street

 


 

Rally at City Hall

WE ARE NOT FOOLS, MAYOR ADAMS!
          We Want Medicare, Not Money Care!
                      Friday, March 31, 12 Noon -  Broadway & Murray St.

No to Medicare Advantage
NYC retirees do not want to be forced onto Aetna’s for-profit Medicare Advantage plan! NYC retirees demand to keep our traditional Medicare & premium free Medi-gap insurance.

Yes to “Option C”
The Mayor has a choice to make by April 1st. Tell the Mayor to Choose “Option C” in the Aetna contract which would let us keep what we already have. Retirees & Active Municipal Workers: We Need You There

Bring your signs, noise makers, wheelchairs, crutches, walkers, canes, your sense of humor and sense of outrage!
 
For More Info Contact:



Here is the article that was behind a Paywall.  Please come to tomorrows Rally at city Hall at 12 Noon to tell the Mayorf Not to Try to Fool Municipal Retirees.
 
Retirees are here to tell Mayor Adams that they want Medicare Not Profitcare.The fight will continue.



Mayor Adams signs controversial contract that eliminates traditional Medicare for retired NYC workers

By Chris Sommerfeldt

New York Daily News

Mar 30, 2023 at 12:22 pm

Mayor Adams signed off on a contract Thursday that will eliminate traditional Medicare coverage for retired city government workers and shift them into a privatized version of the program instead — a highly controversial move that immediately drew a lawsuit threat from a grassroots retiree group.

The contract with private health insurance giant Aetna is the culmination of a years-long effort by the city to enroll its roughly 250,000 municipal retirees in a Medicare Advantage Plan.

Under the deal inked by Adams, the city’s retirees — most of whom are on a traditional Medicare benefits structure that includes a Senior Care supplement — will lose their current coverage and be automatically enrolled in an Advantage plan administered by Aetna, effective Sept. 1.

The Advantage setup will save the city some $600 million annually thanks to increased federal subsidies, an allocation Adams described as critical at a time that the municipal government is staring down a $10 billion budget deficit by 2026. In a statement, Adams also argued the Advantage plan will improve health care coverage for city retirees.

“This plan improves upon retirees’ current plans, including offering a lower deductible, a cap on out-of-pocket expenses, and new benefits, like transportation, fitness programs, and wellness incentives,” said the mayor. “This Medicare Advantage plan is in the best interests of both our city’s retirees and its taxpayers.”

Tens of thousands of retired teachers, cops, firefighters and other city workers say Adams is wrong.

Citing federal studies that show Advantage plans can deny beneficiaries “medically necessary” care, retirees have called on Adams since he took office to let them stay on traditional Medicare, contending that the switch would put them at risk of losing access to certain doctors, medical procedures and drugs.

A group called the NYC Organization of Public Service Retirees successfully convinced courts last year to block the first iteration of the Adams administration’s Advantage plan — and Jake Gardener, a lawyer for the group, told the Daily News on Thursday that they will file another lawsuit in hopes of derailing the new plan as well.

“We will be challenging this violation of the retirees’ health care rights in court,” Gardener said. “This is just the latest example of the city trying to save money on the backs of retired and disabled city workers. What this would do is to jeopardize the health of a quarter million elderly and disabled city workers.”

Retirees are resisting the Advantage switch, in part, because Aetna will require pre-authorizations for some forms of care, a protocol that does not exist under traditional Medicare. They fear this will result in diluted coverage, and have depicted it as a life and death issue.

“Retired firefighters, police, EMT workers and teachers will be forced into a privatized, managed care plan that has strict in-network, pre-authorization and referral requirements that will cause potentially life-threatening delays and denials of care,” said Marianne Pizzitola, a retired FDNY EMT who leads the NYC Organization of Public Service Retirees.

“Many of the quarter-million respected public servants, and all the current NYC public employees, will be harmed by this damaging decision by Mayor Adams.”

In his statement, Adams said he sympathizes with the angry retirees.

“We also heard the concerns of retirees and worked to significantly limit the number of procedures subject to prior authorization under this plan,” he said.

The reason courts blocked Adams’ first plan was because it would’ve levied a $191 monthly premium on retirees who wanted to opt out of Advantage and stay on traditional Medicare. The courts found that penalty violated a local law requiring the city to provide its retirees with premium-free coverage for life.

Adams’ administration, with support from the city’s Municipal Labor Committee, says the new plan structure complies with the court rulings because there will no longer be a $191 penalty on the table as the premium-free Advantage coverage is the only insurance option available to retirees.

Gardener disagreed and claimed the new plan is also illegal.

“Forcing them into Medicare Advantage by not even giving them the option of keeping their existing health insurance is far more damning and just as illegal,” he said.

Gardener declined to say exactly on what grounds his group will challenge the new plan, but added: “We have a number of grounds that we will be relying on to ensure that the savings the city is looking to achieve is not obtained solely on the backs of retirees.”

Sunday, March 26, 2023

Is the UFT a company union? UFT/Unity act like Republicans: Anti-Strike, Anti-Public Healthcare; Becoming a Laughing stock of the union movement

There is still time to register for tonight's Retiree Advocate-UFT's meeting at 7pm on Zoom.  Register Here: https://bit.ly/3yr6M8K (Close to 250 people are already registered.)

DONATE TO THE UFT PETITION CAMPAIGN FOR A HEALTHCARE VOTE  - IT IS COSTING MONEY TO MAKE SURE EACH ELECTRONIC SIGNATURE WILL NOT BE TOSSED OUT BY THE UFT LEADERSHIP.

A Tale of 3 city teacher unions - and UFT/Unity are the losers


 

Sunday, March 26, 2023 - This  post is loaded, so sit back or just ignore and go out and get some sun

No matter the liberal blather from the UFT (we support the LA teachers for not crossing picket line but would jump off the roof of 52 Broadway of NYC did the same), we have an ineffective right-center UFT leadership compared to the left wing leadership in Chicago and Los Angeles and the compilation I've gathered below proves it, not only ideologically, but in terms of actual political and economic accomplishments. My comment above about changing the leadership does not mean dumping Mulgrew for another Unity Caucus hack but removing Unity from leadership. Note these articles.

In the UFT we have decreased militancy - actually no militancy. Well, if you  consider "wear certain colors certain days" as militancy. 

The increasingly militant autoworkers had their first direct election of a national president and an insurgent won - barely. He said:

“This is the end of company unionism, where the companies and the union work together in a friendly way, because it hasn’t been good for our members ---- President Is Ousted in United Auto Workers Election --

"Company union" increasingly strikes a chord when talking about the Unity crowd. When Marianne appeared on Brian Lehrer the other day, his first comment was how surprised he was that the UFT was teaming up with the Adams administration against its own members. 

We are not surprised.

A long-time UFT activist asked: What would happen if we had direct elections for presidents of the AFT and NYSUT? Right now only winner take all Unity delegates (750) vote in those elections. 

There is actually a new petition campaign in the UFT to bring a level of democracy with a petition campaign based on the UFT constitution calling for a member vote on healthcare changes (as opposed to Mulgrew backroom deals through the MLC).

Saturday, March 25, 2023

CSA President Explains Why He Voted NO on Aetna (Dis)Advantage Plan; Retirees Fighting Own Unions’ Health Cuts - Labor Notes

Sign the petition for a democratic vote on healthcare.

 

Attend the Retiree Advocate Zoom Sunday, March 26 at 7PM. Register: https://bit.ly/3yr6M8K

Are you fed up with our union leadership making bad decisions for us without our input? We never got a chance to vote about our Medicare with Seniorcare being taken away from us. RA has no representation in the DA, ExBd or RTC despite receiving 30% of vote in last Chapter election. Time to build our caucus and get ready for next year's Chapter Election. Find out how by coming to the Retiree Advocate's meeting on March 26 at 7pm on Zoom.

In case you didn't hear Marianne on Lehrer:

 https://www.wnyc.org/story/nyc-

retirees-speak-out-about-health-plan-changes/

 

 

CSA President Explains Why He Voted NO on Aetna (Dis)Advantage Plan

Who would have thunk that the CSA is more responsive to its members than the UFT? !

 

Retiree Message From CSA President Henry Rubio on MLC Vote

Posted on March 9, 2023 at 8:05 pm by

Brothers and Sisters,

This morning, the Municipal Labor Committee, a group of approximately 100 NYC public sector unions, voted to ratify an agreement with the city and Aetna to transition Medicare-eligible retirees to a Medicare Advantage plan.

CSA voted “no” on behalf of our membership.

Throughout this entire process, we have been committed to fighting for the highest quality of healthcare possible for every retiree. Our retiree members have consistently asked that we advocate for an option for Medicare-eligible retirees to keep their current plan. For a variety of reasons, city retirees will not be allowed that choice at this time, and too many retirees have limited options.

To be clear, our vote was not a referendum on the process nor the Aetna proposal itself. The MLC has been diligent in fighting to protect Medicare-eligible NYC retirees during these complex negotiations, and Aetna has customized their proposal to try and mirror our current Senior Care plan. Aetna representatives have been collaborative and responsive; we greatly appreciate that they addressed our members directly on a Zoom yesterday afternoon. They have committed to returning to speak with our members again now that the agreement has been ratified. Thankfully, many CSA members have had their most critical questions and concerns addressed, and we are pleased that we were able to support these retirees and advocate on their behalf.

However, there are currently too many CSA retirees who still believe this plan is not right for them and their families. In January, I took an oath to represent all CSA members to the best of my ability, and it is my belief, along with our leadership team, that voting “no” today was the right decision for our union.

Other union leaders within the MLC also did what they felt was right for their members, resulting in enough votes to ratify the agreement. Aetna has pledged to begin communicating immediately providing further details and answering your questions. The MLC and the city will work to ensure that the plan is implemented as promised. The dedicated staff and leadership of the CSA Welfare Fund will begin to immerse themselves in the new plan which include many additional, unique benefits.

We will continue to communicate regularly with you in the coming weeks and months. Please be reminded to contact CSA Headquarters or the Retiree Chapter with any questions or feedback about the negotiation process. If you have specific questions regarding the transition to the Aetna plan, please contact the CSA Welfare Fund directly.

As always, I thank you for your honest feedback, patience, and support.

In Solidarity,

Henry Rubio

CSA President

Retirees Fighting Own Unions’ Health Cuts

 

Jenny Brown reports on the vote by New York City’s Municipal Labor Committee to  scrap some of the best retiree health care coverage in the country and push retirees onto the for-profit Medicare Advantage plan. 

Protesters in New York City against the mayor’s and the 

Municipal Labor Committee’s effort to change a city law protecting 

their health care benefits, photo undated.  (Cross-Union Retirees Organizing Committee)

By Jenny Brown
Labor Notes

Defying two years of protests and lawsuits by union retirees, New York City’s Municipal Labor Committee voted March 9 to scrap some of the best retiree health care coverage in the country. The change would put 250,000 city retirees into a for-profit Medicare Advantage plan run by Aetna. 

Twenty-six unions in the MLC voted no, while others abstained. But their votes were swamped by the votes of the largest unions on the committee, AFSCME District Council 37 and the New York United Federation of Teachers. 

Retirees and active members protested during the MLC vote and marched to City Hall. They are asking the city council to strengthen the law protecting retiree health care. The NYC Organization of Public Service Retirees promises to sue. 

The New York City fight has wider implications as for-profit Medicare Advantage insurance companies come under fire for second-guessing doctorsblocking patient care, and ripping off the public while they reel in record profits.

What is Medicare Advantage? 

In traditional Medicare, available when you turn 65, you present your card, get care, and the government pays for it.

With Medicare Advantage, a for-profit insurance company gets money from the government to cover you. But they get to take a fat cut — Medicare Advantage is now the most lucrative sector of an already-lucrative health insurance industry. And they get to say what care you can get.

Medicare Advantage plans negotiated by employers and unions provide worse coverage than traditional Medicare. But they are generally better than the individual Medicare Advantage plans that seniors may sign up for themselves and which are advertised on late-night TV. 

Medicare Advantage plans that individuals buy on the private insurance market may work out to have cheaper premiums than traditional Medicare because they wrap in a drug benefit and may cap out-of-pocket expenses. But they are notorious for denying expensive care, imposing narrow networks of doctors and hospitals and ripping off the government. 

On the other hand, union-negotiated Medicare Advantage plans are the result of insurance companies having to negotiate with unions and employers to sign up large groups of retirees, and that may restrain the most egregious abuses. Still, some retirees in negotiated plans report that they were denied care at the most difficult time in their lives. 

Department of Health & Human Services, Washington, D.C. (Sarah Stierch, CC BY 4.0, Wikimedia Commons)

In both cases, the for-profit insurance companies that run the plans have a strong incentive to deny care. Every dollar they don’t pay for your care is a dollar earned by shareholders and CEOs, who often take most of their compensation in stock. Stock prices are based on how little care the company can pay for.

Traditional Medicare (part A & B) costs $164.90 a month and covers hospital costs and 80 percent of non-hospital costs. But medical costs are such that the 20 percent gap in coverage can quickly become ruinous. So, the government set up a regulated market of Medigap supplements. Retirees can pay additional premiums to private insurance companies to cover the final 20 percent, and cap out-of-pocket costs.

Medigap plans can cost as little as $75 a month, but can cost hundreds more, depending on the plan, your age, gender and whether you smoke. Unlike Medicare Advantage, however, these Medigap plans are heavily regulated.

It is this gap for which New York City union retirees over age 65 are covered by the city’s Senior Care plan. The city also pays the monthly premiums for traditional Medicare, so retirees get premium-free coverage.

Numbers Don’t Add Up

States and municipalities have increasingly tried to put retirees into Medicare Advantage plans once they reach age 65. Where unions have fought the change, as in Washington state and Vermont, they have been able to prevent the switch. But in New York City, retirees have been fighting not just the city but also their own unions to keep from being shunted into a for-profit plan.

Public employees in New York City have given up a lot over the years to keep their ironclad retiree health care coverage and it paid off until now. Along with paying traditional Medicare premiums, the city pays for Senior Care, the wrap-around supplement that picks up nearly all costs not covered by Medicare, along with drug benefits.

Rally in Washington, D.C., February 2013. (Djembayz, CC BY-SA 3.0, Wikimedia Commons)

Leaders of District Council 37 and the UFT claim the Medicare Advantage plan will save money and provide the same coverage. But the numbers don’t add up, said Len Rodberg, a retired City University of New York health policy expert who will be affected by the change. “Medicare Advantage starts out 20 percent below what Medicare does, in terms of actual money available to spend on health care,” Rodberg said. 

Traditional Medicare pays 3 percent overhead. By contrast, Medicare Advantage plans have to make a profit for shareholders, and they also pay huge executive salaries and maintain enormous staffs to protect their profit margins by delaying and denying care. In these for-profit plans, Rodberg said, “basically anything that costs money would need pre-approval.”

Municipal Labor Committee leaders said their consultants told them the difference would be picked up by the federal government, Rodberg said. But while the federal government used to subsidize for-profit Medicare Advantage plans 20 percent over what they paid out for traditional Medicare patients, that subsidy is now down to 2 percent. 

Medicare Advantage plans also cut costs by contracting with certain providers. This means the insurance company will only pay for care provided by certain doctors or hospitals. For retirees who move to states with spotty coverage, Rodberg said, “suddenly their Medicare card won’t work, cause they’re in Medicare Advantage, not Medicare.” 

Quick Reaction

Retired teacher Gloria Brandman heard about the change in 2021 from friends in PSC-CUNY, the union of faculty and staff at the City University of New York. She and other teacher retirees swung into action, holding a webinar that drew 400 people. The recording of the webinar circulated widely, leading to a whirlwind of protest which forced UFT’s president, Michael Mulgrew, to hold a town hall where he tried to sell the change.

Retirees from the teachers, AFSCME and several uniformed service unions formed a Cross-Union Retirees Organizing Committee to fight. Brandman and other CROC activists hounded newly elected Mayor Eric Adams at every opportunity.

New YorkCity Mayor Eric Adams February, 2022. (Marc A. Hermann / MTA, CC BY 2.0, Wikimedia Commons)

They rallied when the MLC met: “We marched on the hottest day of the year,” Brandman recalled. They held a Valentine’s Day “Don’t Break Our Hearts, Mayor Adams” event.

In October they held a “Halloween Horror” press conference, saying “Mayor Adams, You’re Scaring Us to Death.” (“Death masks optional,” said the invitation flier).

A city law requires that all the health care options the city provides be premium-free. That law turned out to be an important backstop and the NYC Organization of Public Service Retirees sued to get it enforced. A judge agreed that it was against the law for the city to charge seniors an extra $191 per month to stay in original Medicare.

So Adams and the MLC leadership asked the City Council to change the law. They walked into a buzz saw. After vigorous protests and reams of testimony from retirees and active union members objecting to the change — which could have undermined active members’ health care as well — the City Council declined to alter the law.

In her testimony before the council, Jen Gaboury, PSC chapter chair at Hunter College said, “We know these ‘savings’ don’t come from some brand of private business magic. If you get this money, you’ll be denying care and/or delaying treatment to your own people, older city workers.”

Contracts Held Hostage

Part of the problem is that the unions created a $600 million hole in the last round of contracts and they’re trying to plug it now. They negotiated to use a health care stabilization fund, designed to equalize costs between health plans for active members, to bolster wage increases. Now the fund is broke and that threatens to raise health care costs for active members.

At the City Council hearings, PSC-CUNY proposed a way out of this mess. Retired professor James Perlstein described it in his testimony:

“(a) Redirect funds the City holds in reserve to bridge the Municipal Labor Committee Stabilization Fund for three years, (b) Create a stakeholders commission charged with finding a path to control health care spending, with hospital pricing as a priority, and (c) Develop a sustainable mechanism for funding City health insurance.”

PSC also suggested that New York City’s very profitable non-profit hospitals contribute, since they don’t pay taxes.

None of these steps have been taken, so far. Instead, city administrators continue to push Medicare Advantage. “The city’s taken a hardball position that it won’t negotiate new contracts until the unions save them $600 million by moving forward with Medicare Advantage plan,” said Rodberg in February. The city promises to replenish the stabilization fund with the estimated $600 million it will save from the switch.

AFSCME DC 37 members have been working for 18 months without a contract. Recently the city and the union inked a tentative agreement with raises that don’t even keep up with inflation. Other city unions object that this low bar will harm their negotiations, since the city expects the first agreement settled by a major city union to set a pattern which the other municipal unions will largely follow.

And while members will get to vote on the agreement, they won’t be able to vote on the retiree health care concession their union agreed to behind closed doors. It seems that as a condition for settling, the dominant MLC unions agreed to impose what the retirees call “the nuclear option,” deliberately misreading the city law they tried to change, and making Medicare Advantage the only option for retirees. 

Any retiree who wants to stay in traditional Medicare would have to pay for all of their coverage, as if they had no union at all.

Jenny Brown is an assistant editor at Labor Notes.

This article is from Labor Notes.

The views expressed in this article may or may not reflect those of Consortium News.