March 30, 2023
Contract with Aetna Ensures Lower Deductible, Cap on Out-of-Pocket Maximums, and New Benefits for City’s Retirees
Plan Also Significantly Lowers Numbers of Procedures Requiring Prior Authorization
NEW YORK – New York City Mayor Eric Adams and New York City Office of Labor Relations (OLR) Commissioner Renee Campion today announced the official signing of the contract between the City of New York and Aetna to provide a Medicare Advantage plan to the city’s roughly 250,000 retirees and their dependents. The New York City Aetna Medicare Advantage plan will continue the city’s long-standing commitment to providing high-quality, premium-free coverage to the city’s retirees and their dependents.
“Our administration has never wavered in our commitment to provide retirees and their dependents with high-quality, sustainable coverage while allowing us to rein in the skyrocketing costs of health care and the strain it is placing on our city’s budget,” said Mayor Adams. “This plan improves upon retirees’ current plans, including offering a lower deductible, a cap on out-of-pocket expenses, and new benefits, like transportation, fitness programs, and wellness incentives. We also heard the concerns of retirees and worked to significantly limit the number of procedures subject to prior authorization under this plan. This Medicare Advantage plan is in the best interests of both our city’s retirees and its taxpayers.”
“For months, the city has worked with the Municipal Labor Committee to diligently negotiate this contract with Aetna to provide a custom Medicare Advantage program to the city’s retirees,” said OLR Commissioner Campion. “This new plan provides substantial improvements to retirees’ health coverage, as well as new and enhanced benefits. We thank the MLC for their partnership throughout this process and Aetna for working with us to provide the best possible plan for New York City retirees.”
“We’re honored to offer a customized Medicare Advantage plan that provides high-quality, affordable, and convenient health care for City of New York retirees who’ve devoted their careers to serving New Yorkers,” said Dan Finke, president, Aetna. “With nearly 60 years of Medicare expertise and experience, we stand ready to serve retirees through our network of primary care and specialty physicians, mental health providers, and hospitals they already know and trust.”
The signing of the five-plus year contract follows the official approval by the Municipal Labor Committee (MLC) on March 9, 2023. As of September 1, 2023, retirees currently enrolled in the city’s Senior Care plan will automatically be enrolled in the Medicare Advantage plan. Medicare-eligible retirees and their dependents will also be able to opt out of the Aetna Medicare Advantage plan and enrolling in the city’s HIP VIP Plan instead.
The city’s Aetna Medicare Advantage plan will provide a lower deductible for retirees than their current Senior Care plan. The plan also places a cap on out-of-pocket expenses and offers new benefits to retirees, including transportation to certain doctors’ appointments, fitness programs, and wellness incentives. Additionally, the plan significantly limits the number of procedures requiring prior authorization.
“We’ll continue to build a strong partnership with the City of New York and the Municipal Labor Committee, which were and will remain instrumental in helping engage retirees in their health care,” said Rick Frommeyer, senior vice president, Aetna Group Retiree Solutions. “We’ve already proactively collaborated on multiple ways to educate retirees about our Medicare Advantage plan benefits and to help ensure a smooth transition on September 1, 2023. We look forward to meeting retirees at one of the many upcoming open enrollment meetings.”
The city is committed to working with Aetna to ease the transition to the new plan and answer any questions from eligible retirees. Aetna has built a custom website specifically for City of New York retirees. The website has resources for retirees to look up their doctor, find out detailed information about their plan, and register for online and in-person information sessions. Retirees can also contact Aetna’s dedicated call center at 855-648-0389 (TTY: 711), Monday to Friday, from 8:00 AM to 9:00 PM. Aetna will additionally be holding a series of in-person town hall meetings beginning next week in the New York metro area and other states with high Medicare-eligible retiree populations to answer any questions and assist them with the transition.