The leader of New York City’s public school teacher’s union says his organization is pulling its support for Mayor Eric Adams’ ongoing effort to switch retired city workers from traditional Medicare onto a private Medicare Advantage plan — a change that some retirees argue would weaken their health benefits.
United Federation of Teachers President Michael Mulgrew’s announcement signals that the plan could be losing the union support it needs to move forward, even if it eventually gets the green light in court after a prolonged legal battle. Any change to coverage could affect about 250,000 retirees. Adams’ office argues that shifting to a Medicare Advantage plan would improve coverage overall while saving $600 million annually — money that’s slated to fund health benefits for current city workers.
The city needs approval for the plan from the Municipal Labor Committee, an umbrella organization that represents city unions. As head of the UFT, Mulgrew is among the labor leaders with the most sway on the committee. His union represents nearly 200,000 members and the committee has weighted votes that give larger unions more power.
But it remains to be seen whether other unions that have backed the health plan will follow Mulgrew’s lead.
The committee previously voted to approve Aetna’s Medicare Advantage contract, and labor leaders including Mulgrew have long defended the plan against detractors, even among their own retired members. Committee members planned to discuss the UFT’s reversal in a steering committee meeting on Monday morning.
Mulgrew’s change in position comes after UFT retirees voted last week to oust union reps who supported the Medicare Advantage plan, spelling potential trouble for the union president.
“When you have a vote, you listen,” Mulgrew said. “That’s what you’re supposed to do as a union leader.”
The ongoing dispute over changing plans had “just created all this fear and anxiety and it’s, like, enough already,” he added.
A group of retirees who fear the Medicare Advantage switch would weaken their health benefits successfully sued the city over the plan and got it blocked by a judge last year. But even after an appeals court upheld that decision last month, the Adams administration hasn’t given up. The city is now petitioning the state’s highest court to hear the case.
On Sunday, Mulgrew sent a letter signaling his decision to Harry Nespoli, chair of the Municipal Labor Committee and president of Teamsters Local 831, which represents sanitation workers.
Nespoli did not respond to a request for comment on Monday.
Henry Garrido, president of District Council 37, the union that represents city workers in health care and other sectors, said in a statement on Sunday that he and other committee members would assess the move and figure out their next steps.
“The very stark fact remains that health care for city workers and retirees needs to be funded, and absent a viable solution such as the one underway, those premium-free benefits are on the line,” Garrido said.
Retirees opposed to the plan have raised concerns that it would result in more delays or denials of health care and could force some patients to switch doctors. In 2022, a federal investigation found that Medicare Advantage plans were more likely than traditional Medicare to require prior approval before they agree to cover a medical procedure or service and more likely to reject a request for coverage.
But in its deal with the city to operate the Medicare Advantage plan, insurer Aetna agreed to limit prior approval requirements. Labor leaders like Mulgrew also pledged to monitor how frequently health care was denied. The city and Aetna have sought to convince retirees that their benefits would not be diminished.
The NYC Organization of Public Service Retirees, which was formed to oppose the Medicare Advantage plan, celebrated Mulgrew’s reversal on Sunday.
“It is time for the city to come to its senses and end its senseless, illegal war on retirees,” the group said in a statement. “The NYC Organization of Public Service Retirees is calling on the Adams administration to protect retirees’ health care rights and to work with retirees to find real, sensible solutions to today’s healthcare challenges.”
In a statement about UFT’s withdrawal of support for the Medicare Advantage plan, Nicholas Paolucci, a spokesperson for the city’s Law Department, noted that the plan was negotiated with the Municipal Labor Committee. He said the plan would improve retirees’ benefits while saving the city the expected $600 million.
“This is particularly important at a time when we are already facing significant fiscal and economic challenges,” Paolucci said.
Read More: Key union pulls support for moving 250K NYC retirees to Medicare Advantage