NYC declines to enact Aetna Medicare Advantage plan, citing ongoing lawsuit

New York City's comptroller is halting implementation of an Aetna Medicare Advantage plan for retired city employees while the contract is challenged in court. 

In a June 8 news release, Comptroller Brad Lander said the pending litigation "calls into question the legality" of the contract, which would provide health benefits to 250,000 retired municipal employees and dependents. 

In a lawsuit filed in New York County Supreme Court May 31, nine retirees and the NYC Organization of Public Service Retirees allege providing Medicare Advantage as the only option for retirees violates the city's obligation to provide health benefits to its retired workers. 

In the lawsuit, the retirees alleged they could face coverage denials, out-of-pocket costs and lose their current providers if they are not in Aetna's Medicare Advantage network. 

In the news release, Mr. Lander said the "broader Medicare Advantage trends are worrisome," citing allegations that most major payers have overcharged the federal government. 

"As a matter of public policy, beyond the scope of our office's specific [city] charter responsibility for contract registration, I am seriously concerned about the privatization of Medicare plans, overbilling by insurance companies, and barriers to care under Medicare Advantage," Mr. Lander said in the news release. 

Becker's reached out to Aetna for comment and will update this article if more information becomes available. 

Subscribe to the following topics: new york citycomptrollerbrad landermedicare advantageaetna

Copyright © 2025 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


You can unsubscribe from these communications at any time. For more information, please review our Privacy Policy.
 

Articles We Think You'll Like

 

Thank you so much for your interest in our content. Please register to access this complimentary archived content. By registering, you will receive our newsletter which can be opted out of at any time.

 

Already Registered? Click here to confirm.