NYS Court of Appeals Affirms Decision for Retirees

On Tuesday, December 17th, the NYC Court of Appeals affirmed the two lower court decisions in favor of the Retirees. Read the decision here.

NEW YORK, December 17, 2024 — Press Conference to be held today at 1:00 PM by the NYC Organization of Public Service Retirees at City Hall. 

Today, the New York Court of Appeals, the state’s highest court, issued a historic decision in favor of 250,000 Medicare-eligible retired New York City workers and their dependents.  The Court held that the City must continue to pay the entire cost of any health insurance plan retirees select, thus preserving their right to City-funded Medicare supplemental insurance.  The Court issued a unanimous decision affirming the victories achieved by the retirees in the lower courts. This is their 11th win across three cases.

Rejecting the City’s argument that the City can cease funding retirees’ health insurance, the Court held that “the City must pay—up to the statutory cap—for each health insurance plan that it offers employees and retirees.”  The decision is available here. The Court of Appeals held:

·        Through the City’s Health Benefits Program, the City offers retirees a choice of health insurance plans.  One of those choices is Senior Care, the plan chosen by the vast majority of retirees. 

·        The Court held that, under NYC Administrative Code § 12-126, the City is required to pay the entire cost of whichever health insurance plan a retiree selects.

·        The City need not pay more than the “statutory cap,” which is the cost of the HIP-HMO plan.  The cost of Senior Care is below this cap, meaning that the City has to pay the entire cost of Senior Care.

In 2021, the City announced that it would stop paying for retirees’ Medicare supplemental insurance and automatically switch them into a federally funded—and far inferior—type of insurance called Medicare Advantage.  Unlike Medicare supplemental insurance, Medicare Advantage plans limit access to doctors and hospitals and regularly deny coverage for necessary care.  Under the leadership of Marianne Pizzitola and the NYC Organization of Public Service Retirees, retirees banded together and sued to protect their right to Medicare supplemental insurance. 

This is another resounding victory for the NYC Organization of Public Service Retirees (one of the lead plaintiffs in the case) and the entire retiree community.  In the past three years, retirees have brought three separate lawsuits regarding their healthcare rights and have obtained landmark victories in each case at both the trial and appellate levels. 

Marianne Pizzitola, President of the NYC Organization of Public Service Retirees, states, “The City’s plan to defund retiree healthcare has now been analyzed by 13 different judges across all three levels of the state judiciary.  Every single judge—all 13 of them—have concluded that the City’s plan is unlawful.  We once again call on the City and the Municipal Labor Committee to end their ruthless and unlawful campaign to deprive retired municipal workers of the healthcare benefits they earned.”

Jake Gardener, a partner at Walden Macht Haran & Williams LLP, counsel to the retirees, says, “We are grateful to the Court of Appeals for affirming the healthcare rights of hundreds of thousands of elderly and disabled retired City workers.  Because of today’s decision, countless senior citizens and disabled first responders will be able to continue receiving the medical care they desperately need and to which they are entitled.”

Steve Cohen, a partner at Pollock Cohen LLP who also represents the retirees, states, “We are thrilled that the Court of Appeals agrees that City retirees deserve what they were promised: payment for the health plan of their choice.”

Retirees have secured eleven (11) wins since they began fighting back in 2021 literally in the middle of a pandemic. 

Council Member Christopher Marte (D-District 1) stated, “Today’s ruling is a monumental victory for the 250,000 retirees who dedicated their lives to serving NYC.  The Court of Appeals has made it clear, “the City cannot break its promises to those who built this City and safeguarded its future.  Retirees deserve access to the healthcare they were guaranteed – care that is vital to their very well-being and dignity.  This decision is a resounding rejection of efforts to defund retiree healthcare, and it underscores the need for us, as elected officials, to prioritize people over profits.  I stand proudly with the retirees and will continue to fight to ensure their healthcare choices are protected.  As such, we must pass Intro-1096 to enshrine retiree healthcare once and for all.”