NYC Court Allows New Self-Funded Health Plan for Municipal Workers to Proceed

A Manhattan Supreme Court judge has denied a petition seeking to halt New York City's new self-funded health insurance plan for municipal workers, which is administered by EmblemHealth and UnitedHealthcare.

The petition, filed by the advocacy group Hands Off NY Care, Inc. and supported by city employees, alleges that the Adams administration's plan is an unlawful replacement of the city's long-standing insured health coverage model. The court decision allows the plan to proceed to a critical review by the city Comptroller, Brad Lander, who must approve the contract by November 13. The health plan, projected to save the city an estimated $1 billion annually, is scheduled for implementation on January 1 following union approval in September.

Hands Off NY Care has expressed concerns about the removal of state-law protections and the lack of transparency and input from affected workers and retirees during the planning process. The group has actively campaigned against the plan through online advertisements and public demonstrations, though its funding sources remain undisclosed. Representation for Hands Off NY Care is provided by Holwell Shuster & Goldberg LLP, a firm known for handling significant health insurance litigation. Anthem Blue Cross Blue Shield, the current insurer for city workers, has also opposed the new plan and filed a separate lawsuit challenging the transition; however, that case remains under seal.

The ongoing legal and administrative proceedings highlight the complexities of transitioning municipal health coverage to a self-funded model and underscore the significant financial and regulatory implications for New York City's public sector workforce and taxpayers.