United Federation of Teachers president Michael Mulgrew has withdrawn support for controversial changes to health care plans for thousands of city retirees in a stunning reversal after his slate of allies got trounced in union elections last week.
The about-face Sunday comes on the heels of staunch opposition to Mulgrew — and city union leaders representing other municipal workers — agreeing to shift retirees from their traditional Medicare coverage to Aetna-run Medicare Advantage to generate cost savings for New York City.
Critics claim the shift of 250,000 city retirees to the privately-run Medicare Advantage supplemental coverage could leave them with higher costs and fewer benefits.
The backlash to the changes shined through last week’s union elections when a dissident faction, Retiree Advocate, defeated the Mulgrew-aligned Unity Caucus to represent retirees in a blowout — 63% to 37%. The renegade retiree chapter now controls 300 seats representing retirees.
Unlike other large unions in the city, retirees are permitted to vote in UFT elections.
Mulgrew — who is up for re-election next year — sent a letter to Municipal Labor Council Committee chairman Harry Nespoli about the reversal in the union’s position.
“The United Federation of Teachers withdraws its support for the Medicare Advantage program for New York City Medicare-eligible retirees as well as for the current healthcare negotiations for inservice and pre-Medicare retirees,” Mulgrew said in the letter to Nespoli.
The labor council — the umbrella group representing all the municipal unions — backed the switch from traditional Medicare to Medicare Advantage, claiming it would preserve quality care for retirees.
The proposal to swap the healthcare plans was first proposed by former Mayor Bill de Blasio — and was designed to allow the city to tap into an estimated $600 million in federal subsidies available to Medicare Advantage plans, potentially lowering New York City’s costs to provide healthcare for its retired public workers.
De Blasio’s successor, Mayor Eric Adams, also supports the switch.
Mulgrew blamed the Adams administration for foot-dragging in current negotiations over health care coverage for retirees and said “we no longer feel that is in the interest of our members to be part of that process.”
“This administration has proven to be more interested in cutting its costs than honestly working with us to provide high-quality healthcare to city workers. As always, we are willing to do the hard work of fighting to maintain our benefits and keep high quality, premium-free health care for all our members, but we need a willing partner,” the teachers union president said.
“We will not let the city keep wasting our time, and we will demand they put workers first.”
The switch over to Aetna-run Medicare Advantage has been blocked in the courts by an advocacy group representing retirees.
The plan also drew criticism from democratic socialist Rep. Alexandria Ocasio-Cortez, who called the program a “cash cow” for private insurers.
But a rep for the City Law Department said Sunday it is asking the state’s highest tribunal, the Court of Appeals, to review the case.
“We have been clear: the city’s plan, which was negotiated closely with and supported by the Municipal Labor Committee, would improve upon retirees’ current plans and save $600 million annually. This is particularly important at a time when we are already facing significant fiscal and economic challenges,” a Law Department spokesman said.
The Municipal Labor Committee will discuss the healthcare controversy at meetings on Monday.
“[Mulgrew] has to do what’s right for his union. He has a union to run,” Nespoli said.
