In spring 2021, the Municipal Labor Committee (MLC) and the city announced they would be auto-enrolling retirees into a private for-profit managed care Medicare Advantage plan. They told the retirees this new “custom” plan was better than what they had and would save the city $600 million, at least according to the city’s 2018 agreement with the MLC.
The city later revealed that the retirees would no longer have 14 choices of plans like they had for decades, and if they didn’t want to be in the new plan, which was premium-free (and only cost the city $7.50 per enrollee) they would now have to pay a penalty premium of almost $200 per person per month to keep a plan that had been in place for 55 years.
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