Medicare Lawsuit Decision And Order On Motion

An INJUNCTION/RESTRAINING ORDER was filed alleging the respondents (City of NY and Office of Labor Relations) unlawfully amended the Medicare plan of current retirees. The Court has previously held on October 21, 2021 that the selection of the Alliance to administer the proposed Medicare Advantage Plus Plan was not arbitrary and capricious, however the implementation of the plan was irrational. As such, the Court ordered the parties to conference and negotiate a favorable implementation process and for the respondents to present to the Court a plan consistent with the October 21 order. On 12/14/21, the NY Supreme Court Honorable Judge Frank ruled on the Medicare Advantage lawsuit allowing the MA plan to go forward effective April 1, 2022, subject to the Alliance’s interim reporting on implementation plan progress. To read the Court’s 12/14/21 decision click here .

Since that time, the parties have made multiple submissions and appearances before the Court; and on 3/3/22, the Honorable Judge Frank issued a Decision and Order on Motion ordering that “the preliminary injunction previously put into place by this Court is lifted, except that:

1. 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;

2. 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

3. The respondent shall ensure that all retirees and dependents of such retirees pay the deductible for only one plan for the calendar year 2022. Click here to read the entire Court Decision