New York City Contracts With Aetna For Retiree Medicare Advantage Plan, Anticipates $600 Million Annual Cost Savings

On March 30, 2023, the City of New York contracted with Aetna to provide a Medicare Advantage plan to the city’s roughly 250,000 retirees and their dependents. Aetna will replace the city’s fully subsidized Senior Care Medicare supplement plan provided by EmblemHealth. The five-year contract with Aetna features premium-free coverage, lower deductibles, and a cap on out-of-pocket spending. The contract also reduces the number covered services requiring prior authorization and includes new benefits and programs, such as non-emergency medical transportation, fitness programs, and wellness incentives.

The city estimates that switching retirees from . . .