The Organization of Public Service Retirees, which includes over 4,000 retired New York City public servants, is suing the city over its recent Medicare contract with Alliance.
The retirees allege that the newly awarded health plan is a "significant diminution" of their previous benefits under their former supplemental Medicare or "Medigap" plan, according to a Sept. 27 news release from the law firm representing the plaintiffs.
The complaints against the new plan include costly copays, limited network physicians and prior authorization hurdles, according to the news release. The plaintiffs allege that the city set up the new plan without consulting retirees.
New York City officials allegedly made the shift to reduce healthcare costs. The plan covers about 250,000 older or disabled retirees.
"The City is committed to selecting providers that are in the best interest of the City and its retirees," a New York City Law Department spokesperson told Becker's. "We’ll review the case."
The new lawsuit comes on the heels of Aetna suing New York City and labor leadership over the same Medicare contract, alleging that the bidding process was "tainted."