UnitedHealthcare in legal fray over $34B NYC retiree coverage contract

UnitedHealthcare is among the payers involved in a legal battle over New York City’s decision to shift retirees’ healthcare coverage off of Medicare and onto a new contract with Empire Blue Cross Blue Shield and EmblemHealth’s joint venture, the Alliance.

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The insurer filed a lawsuit Sept. 23, just days after Aetna issued its own against the city and labor leaders.

The lawsuit — brought by United HealthCare Services, Sierra Health and Life Insurance Company, Oxford Health Insurance and UnitedHealthcare Insurance Company of New York — also targets the city and the Office of Labor Relations. 

The suit alleges that the Alliance did not meet solicitation requirements, that the procurement process was changed mid-selection and that the process unfairly favored the Alliance. 

Up to $34 billion between five and 11 years is on the table to whomever manages the contract, according to the lawsuit.

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