Rep. Alexandria Ocasio-Cortez took a swipe at both Mayor Eric Adams and the city’s union leaders — sharply criticizing a controversial plan to move 250,000 city retirees off traditional Medicare and into a privately managed version of the program.
AOC’s shot at City Hall over a concerning issue for seniors — a key voting constituency — could be a test of the waters for a Senate run against Democrat incumbent Kirsten Gillibrand, or even a challenge to Adams’ 2025 re-election bid, political consultants said.
The congresswoman has not ruled out a Senate run next year, and backed lefty challenger Maya Wiley’s failed run against Adams in the 2021 City Hall race.
“It’s a bad decision. It is not good,” Ocasio-Cortez said about the change in health coverage for retirees during a virtual town hall Thursday.
“This is something I oppose. We are in this fight with you and we oppose this shift.”
Private health insurer Aetna will manage the Medicare Advantage program.
The switch, initially proposed by former Mayor Bill de Blasio, enables the city to tap into an estimated $600 million in federal subsidies available to Medicare Advantage plans, lowering the city costs to provide health coverage to retired city government workers.
Adams advanced the program with changes — and it was overwhelmingly approved in a vote by the Municipal Labor Committee, the coalition of union leaders representing workers and retirees.
The switch will provide some new benefits, like routine hearing and vision exams, hearing aids, and mental health care via telemedicine.
Aetna’s Medicare Advantage plan will have a lower annual deductible – $150 compared with $276 under SeniorCare, the city’s supplemental health plan for Medicare.
The Medicare Advantage deductible will also be waived during the 2023 calendar year.
But AOC suggested Medicare Advantage is a bait-and-switch.
Monthly bills on paper are lower but she warned retirees will get socked with higher bills if they’re hospitalized for a serious illness.
“A lot more of those costs are going to get moved onto you and moved onto seniors and retirees in a shift to Medicare Advantage,” she said, adding it’s “very concerning” the program will be run by a for-profit private insurer.
“This [Medicare Advantage] is a cash cow for them [private insurers]. It’s very profitable,” she asserted.
The congresswoman, who sources say has worked well behind the scenes with Adams despite some differences, didn’t criticize the mayor or any labor leader by name.
But AOC said retirees — who typically aren’t allowed to vote in elections to elect leaders of their unions — need to light a fire under union officials and Adams, who’s up for re-election in 2025.
“Do not give up,” she urged. “There needs to be pressure — and by the way, that needs to be electorally and also having those conversations with your union. Those are the folks who are at the negotiating table and there has to be accountability.”
The congresswoman, who represents portions of The Bronx and Queens, said Medicare Advantage has been rife with inflated bills and fraud, noting she was one of 70 House members who co-signed a letter to President Biden urging tighter controls to rein in program costs and prevent denials of services to seniors through “prior authorization.”
One veteran campaign vet said Ocasio-Cortez looks like she’s auditioning for another office.
“She’s got nothing to lose. Queens is the ground zero for the DSA [Democratic Socialists of America ] people. She would be a worthy challenger,” said political consultant Hank Sheinkopf.
“It’s a good way to test things. The Adams administration has every reason to be worried about the progressives, especially if crime doesn’t calm down, if the city still appears out of control. It wouldn’t be surprising that they are thinking about who they are going to run against him.”
On Sunday, the mayor defended the switch to Aetna-run Medicare Advantage as a win for the city and its retirees.
“The custom Medicare Advantage plan we will be offering to our city’s retirees starting later this year improves upon retirees’ current plans, including offering a lower deductible, a cap on out-of-pocket expenses, and new benefits, like transportation, fitness programs, and wellness incentives,” a statement from City Hall said..
“We also heard the concerns of retirees and worked to significantly limit the number of procedures subject to prior authorization under this plan. This plan is in the best interests of retirees and taxpayers, and we look forward to working with retirees, elected officials, and other stakeholders as the plan takes effect.”
Harry Nespoli, chairman of the Municipal Labor Committee and president of the Uniformed Sanitationmen’s Association, brushed off Ocasio-Cortez’s opposition to the Medicare switch.
Harry Nespoli, chairman of the Municipal Labor Committee and president of the Uniformed Sanitationmen’s Association, brushed off Ocasio-Cortez’s opposition to the Medicare switch.
“Tell her to give me a call at the union hall,” Nespoli said Sunday, defending the switch as prudent.
“It was time to do this. Governments have been moving into Medicare Advantage across the country.”
