Anthem Healthcare Fights to Retain Contract for NYC Civil Servants Amidst Switch
TL/DR –
Anthem Healthcare Assurance has intensified its legal battle to retain its contract to provide health benefits for 750,000 civil servants and their dependents in New York City, ahead of a planned switch to a less expensive competitor on January 1. The insurer has filed a second lawsuit against the city, alleging that the selection process was unfair and the switch to a self-funded plan where the city takes on financial responsibility is unlawful. The city’s new healthcare plan, to be managed by UnitedHealthcare and EmblemHealth, is projected to save taxpayers around $1 billion annually.
Insurer Fights to Retain Lucrative City Contract ahead of January Switch
Anthem Healthcare Assurance, who provides health benefits for 750,000 civil servants and dependents, is increasing its legal efforts to keep its profitable contract with the city. This move comes ahead of a switch scheduled for January 1 to a more cost-efficient competitor. The firm filed a legal suit against the city and its chief labor negotiator, objecting to the selection process and the legality of the new city-funded plan managed by UnitedHealthcare and EmblemHealth.
Controversy Surrounding New Healthcare Plan
Despite an advertising campaign from an advocacy group urging the rejection of the ‘dangerous’ plan, Comptroller Brad Lander approved the United/EmblemHealth contract. Anthem, in its new lawsuit, alleges the switch to a self-funded plan is unlawful. An affidavit from Alison Forte Quinlan, an Anthem official, warns of the negative impact the rushed transition could have on city employees, possibly denying them of essential care.
Anthem’s Objections to the New City-Funded Plan
Anthem’s latest suit claims the city examined pricing and cost-saving data from other bidders that it allegedly never requested from Anthem. The company, which has served New York City employees for nearly 80 years, pledged its commitment to ensuring fair and lawful access to affordable healthcare. The city’s adoption of the United/EmblemHealth deal, which was approved by city unions in September, is expected to save taxpayers an annual $1 billion, despite earlier plans for cost-cutting being discarded.
Challenges Anthem Faces in the Legal Battle
Anthem’s attempts to maintain its valuable contract face significant obstacles. A Manhattan Supreme Court judge previously dismissed its case, and the case, which is under appeal, alleges unequal treatment in the bidding process. In a similar context, an effort by advocacy group Hands Off NY Care to prevent the switch was not granted, and a hearing is scheduled for December 1.
Mixed Reactions to the New City-Funded Plan
Hands Off NY Care, a non-charitable nonprofit, hired Wanda Williams for lobbying services. Williams is the former political director of District Council 37, the city’s largest civil service union, which strongly supports the United/EmblemHealth deal. Attempts to contact a spokesperson for Adams and Mayor-elect Zohran Mamdani for comments were unsuccessful.
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