Mayor Adams, OLR Commissioner Campion Continue Negotiations for new City Employee Health Plan That Would Provide Expanded Network of Doctors, Maintain Premium-Free Coverage

June 2, 2025

Proposed Plan Would Include Broader Network of Doctors and Behavioral
Health Specialists, More Coverage for Retirees Living Outside of New York Area, and
Continued High-Quality, Premium-Free Coverage for City Employees 
Active Employees and Pre-Medicare Retirees Would Have Expanded Network
While Potentially Saving New York City Taxpayers $1 Billion Per Year

NEW YORK – New York City Mayor Eric Adams and New York City Office of Labor Relations (OLR) Commissioner Renee Campion today announced the selection of a joint proposal from EmblemHealth and United Healthcare to enter into negotiations for a new health plan for active city employees, pre-Medicare retirees, and their dependents that would continue to provide high-quality, premium-free coverage along with an expanded network of doctors and mental health specialists across the nation. The selection is the product of a years-long procurement process — the first in over four decades — conducted in collaboration with the Municipal Labor Committee (MLC) and would support 75 percent of the city’s workforce and their families, ensuring 750,000 employees, pre-Medicare retirees, and their dependents have the most high-quality, affordable, health care options available. 

The city, together with the MLC, will now move to the next phase of the process to negotiate a contract with Emblem and United.

“Being an affordable and safe city means making sure that we are an excellent employer to the over 300,000 employees who serve their fellow New Yorkers, and that we support our employees’ families, and our retirees,” said Mayor Adams. “One of the most attractive benefits of city service is our outstanding health care, and today, we are announcing the next step to secure an even better deal for those who rely on city health insurance. For the first time in over four decades, we are seeking an upgraded city employee health plan that will maintain high-quality care and premium-free coverage, while expanding access to more specialists, especially mental health professionals, and increasing access to more out-of-state doctors for retirees — all while saving taxpayers an estimated $1 billion per year. I thank the MLC and our labor unions for working with us on this process. Together, we will continue to ensure that New York is a more affordable city and the best place to raise a family, including for those who deliver for nearly 8.5 million New Yorkers every day.”

“I am excited to announce this next step towards a new city employee health plan, which will leverage the city’s purchasing power to provide more doctors, more mental health providers, and a broad national network to 750,000 employees, pre-Medicare retirees, and dependents while saving $1 billion per year,” said OLR Commissioner Campion. “Thank you to MLC Executive Board members Harry Nespoli, Henry Garrido, Michael Mulgrew, Gregory Floyd, and Gloria Middleton, as well as the rest of the MLC, in collaborating with us to achieve this important step. We look forward to negotiations with EmblemHealth and United Healthcare to secure a contract that delivers for city employees and taxpayers.”

Under Emblem and United’s proposal, city employees, dependents, and pre-Medicare retirees in the New York City area will have access to more primary care doctors, more specialists, more nurse practitioners and physician assistants, and more mental health providers. Additionally, over 80,000 covered members living outside the New York area — for the first time — will have access to a broad national network, especially benefitting pre-Medicare retirees who have moved out of the region and are often forced to go out of network for coverage or pay a premium for a plan that provides coverage where they live. Overall, over 200,000 covered members have used doctors who are currently out of network and will be in network under the proposed plan.

Emblem and United’s proposed plan leverages the 750,000 covered lives under this plan to save the city a projected $1 billion per year, stabilizing health care costs that have sharply increased in recent years.

The proposal would — also for the first-time ever — give New York City a self-funded insurance plan, the standard for all large employers, including the New York State Health Insurance Plan covering state employees, greatly reducing the costs of providing the plan with no effect on the quality of coverage.

“We are pleased that after years of intense effort the parties, working together, are moving in the right direction to secure an improved, quality health care program for our hard-working members all the while preserving its premium-free structure,” said Harry Nespoli, chair, MLC. “We look forward to the next step: negotiating a comprehensive agreement that will be brought to the MLC for ratification.”
“We’ve navigated a challenging road to get to this point, but the result is the tentative selection of a new health plan provider that will allow us to increase the quality of benefits for our members and rein in predatory costs,” said Henry Garrido, executive director, District Council 37. “This will all be done while preserving premium-free health care, which is vital for recruitment and retention of our city workforce. Through this process, we are expanding the network of providers, improving access in every borough, and improving mental health benefits. It’s a win-win-win for our members.”

“Our goal is to expand benefits and preserve our premium-free health care,” said Michael Mulgrew, president, United Federation of Teachers. “We believe the MLC can do both by curbing the greedy health care industry and by harnessing the buying power of our 750,000 city employees and family members.”

The award of the contract is subject to successful negotiation, finalization, and approval of a contract with the city and the MLC and is subject to all necessary approvals. The city and the MLC will together be negotiating with Emblem and United to agree upon a contract and will work with them to provide employees with all essential information regarding the new plan once the contract is negotiated. Employees will continue to have the choice of enrolling in other plans offered by the city, including the HIP-HMO and MetroPlusHealth plans, which have no employee premiums.

Today’s news builds on the city and MLC’s collaboration over the past decade to continue to provide high-quality, premium-free coverage to city employees, retirees, and dependents, while simultaneously reining in health care costs. These efforts have allowed city employees to continue to receive their health insurance at no premium cost to them, a benefit few other employers offer.  

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