New York City Eyes $1 Billion Health Plan Savings">
New York City Eyes $1 Billion Health Plan Savings
NEW YORK – June 2,2025 – A new health plan proposal by Mayor Eric Adams aims to save the city a considerable $1 billion annually. The announcement, involving EmblemHealth and United Healthcare, signals the start of negotiations for a new approach to city employee health benefits, impacting approximately 750,000 individuals.This is a notable development for New York.
new York City Eyes $1 Billion Savings with Proposed Health Plan
Mayor Adams adn OLR Commissioner Campion announce a joint proposal from EmblemHealth and United Healthcare to revamp city employee health coverage.
A New Era for City Employee Health Benefits
New York City is on the cusp of a significant shift in how it provides health insurance to its workforce. Mayor Eric Adams and Office of Labor Relations (OLR) commissioner Renee Campion have unveiled a joint proposal from EmblemHealth and United Healthcare, signaling the start of negotiations for a new health plan. This plan aims to cover active city employees, pre-Medicare retirees, and their dependents, ensuring continued high-quality, premium-free coverage.
did You Know?
This is the first major overhaul of the city’s employee health plan in over four decades.The goal is to modernize benefits and control rising costs.
The selection of this proposal follows a years-long procurement process, conducted in collaboration with the Municipal Labor Committee (MLC). The plan is designed to support 75 percent of the city’s workforce and their families,impacting approximately 750,000 individuals.
Key Benefits and Savings
- Expanded Network: Access to a broader network of doctors and behavioral health specialists.
- Retiree Coverage: More thorough coverage for retirees living outside the New York area.
- Premium-Free Coverage: Continued high-quality, premium-free coverage for city employees.
- Taxpayer Savings: Potential savings of $1 billion per year for New York City taxpayers.
The city and the MLC will now proceed to negotiate a contract with EmblemHealth and United Healthcare.
Leadership Perspectives
Mayor Adams emphasized the importance of affordable and safe city services,stating:
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. 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.
OLR Commissioner Campion highlighted the plan’s potential to leverage the city’s purchasing power:
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. 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 vital step. We look forward to negotiations with EmblemHealth and United Healthcare to secure a contract that delivers for city employees and taxpayers.
Expanded Access and Coverage Details
The proposed plan promises increased access to healthcare providers for city employees, dependents, and pre-Medicare retirees in the New York City area. This includes more primary care doctors, specialists, nurse practitioners, physician assistants, and mental health providers.
Notably, over 80,000 covered members living outside the New York area will gain access to a broad national network. This is especially beneficial for pre-Medicare retirees who have relocated and previously faced challenges with out-of-network coverage or costly premiums.
Pro Tip
Check with your current healthcare providers to see if they will be in-network under the new proposed plan. This can help you prepare for any potential changes.
The plan also addresses the needs of over 200,000 covered members who have previously utilized out-of-network doctors, ensuring they will now be in-network under the new arrangement.
Financial Impact and self-Funding
EmblemHealth and United Healthcare’s proposal aims to generate $1 billion in annual savings for the city by leveraging the large pool of 750,000 covered lives. This is expected to stabilize healthcare costs, which have been on the rise in recent years.
A significant aspect of the proposal is the introduction of a self-funded insurance plan for New York City. This model, common among large employers like the New York State Health Insurance Plan, is projected to reduce plan costs without compromising the quality of coverage.
MLC Support and Future Steps
Harry Nespoli, Chair of the MLC, expressed satisfaction with the progress made:
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. We look forward to the next step: negotiating a comprehensive agreement that will be brought to the MLC for ratification.
Henry Garrido, executive director of District council 37, echoed this sentiment:
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. 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.
Michael Mulgrew, president of the United Federation of Teachers, emphasized the importance of expanding benefits and preserving premium-free healthcare:
Our goal is to expand benefits and preserve our premium-free health care. 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 contract award is contingent upon triumphant negotiation, finalization, and approval by the city and the MLC. The city and the MLC will collaborate to negotiate a contract with EmblemHealth and United healthcare, ensuring employees receive comprehensive facts about the new plan once the contract is finalized. Employees will retain the option to enroll in other city-offered plans, such as HIP-HMO and MetroPlusHealth, which have no employee premiums.
Building on Past Success
This initiative builds upon the city and MLC’s decade-long collaboration to provide high-quality, premium-free coverage to city employees, retirees, and dependents while managing healthcare costs. These efforts have enabled city employees to maintain their health insurance without premium costs, a benefit that sets the city apart from many other employers.
