New York City’s retired municipal employees are battling the Eric Adams administration and their own unions, who want the retirees to switch from Medicare to a for-profit Medicare advantage program run by Aetna. The city expects to save $600 million a year by switching its employees to Aetna. (Aetna’s CEO is the highest paid person in the health insurance industry at $27.9 million per annum.)
Arthur Goldstein recently retired after a teaching career of nearly forty years, mostly teaching English language learners in high school. He is outraged that the city and his union want to take away the health insurance that he worked for and substitute an inferior Medicare Advantage plan. The city claims that MA is better than Medicare, but where will that $600 million in savings come from? Where will Aetna’s profit come from?
Two sources of savings and profits:
1. Denial of service. If Aetna does not approve a major procedure recommended by your doctor, you won’t get it. You can appeal; maybe your appeal will win. Maybe not. Medicare does not question your doctor’s medical advice.
2. If your doctor is not in network, he or she won’t be paid.
I need a union to protect me, along with my brothers and sisters, from our adversaries. Our number one adversary is our employer, currently embodied in Mayor Eric Adams. When Mayor Eric Adams says he wants to degrade our health benefits, I’m glad to stand with my union to fight. When Mayor Eric Adams says he wants to give us a compensation increase barely one-third of inflation, I’m ready to descend upon City Hall with all my union brothers and sisters.
Our leadership, though, has asked for neither. Instead of that, they’ve asked me to stand up for a “fair contract.” The contract, though, contained both of the glaring flaws noted above. Leadership wanted me to go to Starbucks and have people there see me work. I don’t set foot in Starbucks unless one of my students gives me a gift card. Starbucks is virulently anti-union, and I have better coffee at home.
I’ve been writing for months about how our leadership has sold out our retirees (and now I am one). I have been quite active opposing private corporate insurance for retirees. I don’t want some clerk at Aetna determining I don’t need care my doctors deem necessary. In service members do not need a plan that’s 10% cheaper than GHI-CBP. How many more doctors need to drop our plan before Mulgrew climbs out of bed with Adams?
Last week, on one of the hottest days of the year, I stood outside with both retirees and active members while the independent Organization of NYC Retirees went to court to stand for us. By the next day, there was a ruling that this downgrade could cause us “irreparable harm.” They embodied not only activism, but successful activism.
Let me ask you this—if our union leadership supports things that cause us irreparable harm, why should we be at their beck and call? Why should we get out there and demand a sub-inflation raise? Why should we demand a contract that does nothing to address the downgrade of our health care?
As I’m asking this, a lot of members have more fundamental issues. A few years back, I was chapter leader of the largest school in Queens (an odd position for someone who opposes activism). I was ready to strike for safety. Members announced, with no shame whatsoever, that they’d be scabs. This tells me they don’t even know what union is.
Whose fault is that? We, as a society, don’t really teach about labor and union. I kind of learned as I went along. There is a great book called Beaten Down, Worked Up by Steven Greenhouse. If you read it, you’ll get a laundry list of things that UFT does NOT do. We could strike, or we could do a whole lot of things short of that. But that’s not how our leadership thinks. I’ll bet you dimes to dollars Michael Mulgrew, except possibly when he read my blog, has never even heard of this book.
That’s why we are asleep. We call Mulgrew and the Unity Caucus “the union,” as though we aren’t even part of it. Whole swaths of us think of Mulgrew as our mommy, and think he should come around and personally help when we are in trouble. Mulgrew’s caucus encourages that false dependency.
In fact, they are the ones who don’t want activism. The very notion of it makes them quake in their boots. If we were truly active, we would not stand for their sellouts. We would not stand for diminished health care. We would not stand for wholly insufficient compensation increases. We would not have 20% participation in union elections. Crucially, we would not have a caucus that doesn’t even know what union is running our union.
I wholly support activism. What I just saw in union leadership was a carefully choreographed rush to a contract. There were few opportunities to examine, discuss or question it. There was a kabuki dance of demonstrations to support whatever leadership wanted, and we were all supposed to believe that these petty actions had something to do with realizing a contract. The fact is the contract was set once DC37 agreed. We had absolutely nothing to say about compensation or health care, our most critical issues.
Leadership thinks we are stupid. Leadership hires people solely for the quality of obsequiousness, and many of these hires may indeed be stupid. But I know a whole lot of smart teachers. They can’t fool all of us. A lot of us who won’t be fooled are, in fact, the most active members they have.
I admire activism. That’s why I contributed to NYC Retirees, who went out and protected us from the machinations of Mulgrew and his fellow union bosses. You should do so as well, and here is how.
Let’s be active. Let’s promote activism. And let’s be done with the delusion activism what current leadership wants from us. We are union, we will stand up, and we will protect ourselves.
And very soon, we will vote those bastards out and take charge.
Open the link to read in full.

Thank you for this. You’re absolutely right. No one expects unions to drive hard bargains anymore. Everyone is so easily satisfied. I’m thankful to the NYC Organization of Public Service Employees for showing us what real—and effective—activism looks like.
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There was a day when the mere mention of the UFT would make the mayor of NYC quake in his boots. Those were the days of Al Shanker’s leadership. It is sad when unions align with management and become paper tigers.
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Good morning Diane and everyone,
Say it, Arthur! Say it!!!!
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Union members fighting their own leadership to protect pensions. Beam me up, Scotty.
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Take a poll in the UFT or most Unions on M4all then get back to me.
Union members have great healthcare if they can keep it.
Unions in NY killed a NYS m4all proposal in 2019. “We Have Met the Enemy and He Is Us”
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Union healthcare was superb in 2019. Not anymore. M4All is superior than MA.
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dianeravitch
My plan is still excellent. The question is for how long. Every Union contract sees calls from employers to cut benefits. Some have, the UFT is not alone.
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Joel,
All the municipal unions are in the deal, some with less enthusiasm than others.
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dianeravitch
It is deeper than the Municipal Unions. All of the tradesmen working for all city agencies have the Private Sector Building Trades Unions representing them.
In 2017, 1700 workers represented by my Union were forced to go on strike when Spectrum Communications stopped contributing to their health and pension plans after taking over Time Warner Communications and stonewalling a contract. Granted this was not the (elite ) Construction division. However it was a shot across the bow of organized labor when Charter Communication the Parent Company and 17th largest corporation in America basically wanted to eviscerate these benefits. A 5 year strike/ lockout resulted in failure in spite of Political Pressure a Publioc Service Commission Ruling and a law suit by the State Attorney General resulting in huge fines on Spectrum.
Without revision in Labor Law, in spite of the hype there is nothing to stop a corporation that is determined to break unions.
It is well over a year since workers at Amazon voted for a Union. There has been not one negotiating session. And by the time the NLRB rules on Amazon challenges to the election. Amazon will be ready to call for a decertification election. And win it.
Workers Healthcare and Pensions are not the reason workers join Unions. Few have a clue how much differed wages are used to pay for these benefits. If workers were Joining Unions because of these benefits , Unions would not be only under 6% of the private sector workforce.
It is shortsighted of Unions to not fully endorse M4All
On a separate note terrible Joe Biden has wrestled sick days from the 4 major Rail Road Carriers. Without this pulling down the Democrats and the Union movement .
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You’re right. Mulgrew pushed that objection, hard. Very hard. He used (and continues to use) Vermont’s failure in that area as a major talking point. But the demographics in VT are far different than what we have in NY State.
He (and others) also said that the savings were negligible. Again: a misrepresentation. Yes: we’d still be paying billions…but we’d be saving, I believe it was in the two to three billion dollar range. Not chump change by any means. And better health care. For all.
I don’t know that it was put up for a vote by the rank and file, though. Do you, Joel? Not sure it would’ve made a difference if it had been, though. Michael plays the apathy numbers and does it well.
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gitapik
I suspect that the contract that proposed these changes was put up for a vote. Even if the details of the M.A. plan were not agreed to yet.
It is not just Mulgrew most of the Union movement is stuck in the 1920s when social welfare programs were a way to attract members as some corporations offered the same. These were mainly in house operations with Medical services provided. In fact their Pension and Hospitalization plans adopted the name Welfare Funds . Then along came the (non profit ) Blues. Many Unions kept their in house operations as the negotiated contracts that covered the cost of insurance or management if they were self funded.
Today the first word out of employers mouths is proposed cuts to Health Care plans transferring costs to employees. Even if Unions resist these changes they are at the cost of wage increases.
In spite of Public opinion taking a favorable turn toward Unions and a lot of media hype about a few winning strikes or organizing drives Union membership as a percentage of the workforce continues to drop now at 10.1% that includes free loaders . Private sector membership down to 6% you might have to go back before the Triangle Shirtwaist Fire to see those numbers that low.
Unions lead a Social Movement that wrestles political power or they continue to plummet. They lead the fight for M4All or they watch their members lose those benefits. IMHO
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Nice historical context there, Joel. Thanks. 🍻
I just heard back from my good friend, who was our Chapter Leader. We had some rollickin’ good times together, at the monthly principal consultation meetings.
He doesn’t recall any particular contract negotiation so much as extreme vocal (and email) rhetoric against M4all from Mulgrew. He did all he cpuld to make sure we knew how good we had it and screw the poor (History of the World Pt II).
He pointed out that this extends to the AFT, as well. They had M4All in their last platform paper and Randi made them take it out.
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The board that manages my retiree health care has forced us to join a Medicare advantage plan supposedly specifically created for the district. My district has always been self-insured and has use a commercial company to manage benefits. Many years ago, our union won the concession of lifetime benefits for employees (this is no longer the case for more recent employees). Once we hit Medicare eligibility, we enrolled and continued to pay a smaller monthly premium, and the district insurance became a secondary. It usually covered the difference between what Medicare paid and what we would otherwise owe. Our medical and prescriptions are now part of the for-profit plan. I loved Medicare; we wait now to see what will happen. I am supposed to have cataract surgery next month – I’m afraid as to whether or not it will be approved.
Medicare for all!
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Don,
Two years ago, my cardiologist told me I needed open heart surgery. I was asymptomatic (no pain, no shortness of breath) but the tests showed I had an aortic aneurysm. I had the surgery; it was incredibly expensive but Medicare paid for all but $300. If I had been enrolled in an “advantage” plan, I might have been denied the surgery. My partner is a municipal retiree. Under no circumstances will we enroll in an advantage plan, despite the bells and whistles. We will stay with Medicare.
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My wife and I are both retiree’s from the same district (Fresno Unified in central California). After researching, we never would have enrolled in an “Advantage “ plan either. This came as a shock since the board managing our health care always seemed to put us first. AETNA took over from Blue Cross last year as the company managing our health care, and now we have been forced into this unwanted position.
As retirees, with the union now in the hands of employees who no longer will benefit as we have, I don’t feel there’s much support for our position, even though a more progressive and radical approach could benefit us all.
We hope for the best. Just not sure that’ll happen.
Thanks for all you do on behalf of public education – for the children and for the employees.
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Didn’t a judge issue an injunction against this recently?
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Yes. A few days ago, a judge issued a temporary restraining order against the plan to switch retirees from Medicare to Medicare Advantage. But nothing is certain. The retirees win in court but Adams keeps pushing the MA plan.
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The four headed monster, Nespoli, Mulgrew, Garrido and the Mayor.
With friends like that who needs enemies?
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Whenever my union negotiates with the district, it is always necessary to explain to members that negotiating is an art of compromise. When we fought for smaller classes, many times I unriddled to members the emphasis on working conditions over salary. When we fought for a 20% salary increase another time, I needed to spell out why it was necessary to go on strike to achieve it. Most union members aren’t privy to the work of the negotiating team and will have concerns that need to be addressed.
That said, a raise that only covers a third of inflation right after my union in Los Angeles won twenty percent seems from the outside to be unacceptable, and falling in line with Medicare Advantage and the privatization of retiree members’ healthcare must involve a great deal of untangling, if there is a viable reason, and there does not appear to be one.
This turn of events in NYC is deeply troubling from three thousand miles away. If the insurance industry wins this battle, it will want to wage war across the country. Seems AFT needs to step up or get stepping.
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It’s a bad precedent that can put a corporate bullseye on the healthcare of seniors if a city or state can arbitrarily pull out of an existing agreement with retirees.
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“ If the insurance industry wins this battle, it will want to wage war across the country”.
The insurance industry has been successfully waging a quiet war for decades. More and more people are being moved into these privately managed plans, even while the vast majority of the major players are under federal investigation for fraud and misrepresentation.
There’s gold in them thar bills and the insurance industry, like Big Pharma and other entities whose bottom line is profit driven, means to keep and expand their claims.
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Sounds like Eric Adams and his administration supports death panels, or one person, a clerk with no healthcare training, that decides if you live or die when faced with a health challenge.
When one person sitting at a desk with no health care training wants to keep their job, they will deny, deny, deny to keep the happy boss at the top, who is earning millions annually off the corpses of people dying, when they didn’t have to.
Remember when Obama, after decades of previous presidents failing, passed what’s known as Obamacare, how the extreme right claimed he’d implement death panels? The health care that Obama implemented would have have had death panels.
“Palin’s claim has been referred to as the ‘death panel myth’, as nothing in any proposed legislation would have led to individuals being judged to see if they were worthy of health care.”
The death panels demons (insurance companies in charge of our health—not the health care providers in hospitals) were already in place for decades and they are still fighting to put an end of what Obama implemented.
Deciding who lives and dies is a profitable business.
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More Medicare Advantage recipients harm traditional Medicare. Big Insurance routinely claims patients need more service to collect more money, about $20 billion more. That money comes out of Medicare the same way charter schools can drain public school budgets. In addition, they deny services to spend less on patients. https://www.levernews.com/the-20-billion-scam-at-the-heart-of-medicare-advantage/#:~:text=Medicare%20Advantage%20plans%20have%20higher,an%20estimated%201.5%20million%20claims.
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I did extensive research on the differences between Medicare and Medicare Advantage.
MA plans have the power to deny service. Your doctor must be in the MA network.
One article summed it up this way: MA is great when you are healthy. Medicare is better when you are sick. As you get older, illness is inevitable.
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Lloyd,
I never cease to be amazed by the crazy things that the extreme rights says. They will say anything to get power.
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Diane,
Thank you for publishing this.
BEWARE of Medicare Advantage. There is NO advantage to Medicare Advantage.
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Ahhh…but you’ve got “Silver Sneakers” in those plans. Very fashionable when paired with an aluminum framed wheelchair or roller with black trim.
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Not only “silver sneakers” but a free gym membership and a food pantry.
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🤜🥳🤛
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Was outside yesterday roofing my front porch, a dawn to dark job. So I missed this post.
Important. Very important.
Thanks to all for the information.
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But what about the poor CEO? Does anyone care about them?
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Almost on Topic
https://www.counterpunch.org/2023/07/11/the-nyt-has-decided-we-need-to-cut-social-security-and-medicare/
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I do not understand. I have to pay for my Medicare. The union or the state or the county has nothing to do with it.
Oh! Wait. I think I get it. New York is trying to give its retirees some of the medicines those of us in places where there is no real union have to take: placebos.
When will there exist a political leader who will call insurance companies what they are: subversive governments designed to replace existing governmental structures for the good of a few shareholders. A friend of mine thinks insurance should be illegal. OK, so he has not thought through all this, he is just reacting to the fact that he gets one price for roofing a house for an owner and another inflated price for an insurance job. The medical profession now forces consumers into the insurance market by charging individuals more than they do insurance companies.
Whatever system we choose to replace the broken one we have, it should give people the right, in conference with their doctor, the choose their medical care and be able to afford it within reason.
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Excellent! Kudos to Arthur Goldstein!
Most UFT members don’t even know that there are alternate caucuses within the union. When it comes time to vote for the one that will represent us, there are plenty of emails and posters that are put out for all to read. Descriptions of what can be done to improve our lot. Bios of those who would represent us. But it consistently comes to naught, as the vast majority ends up voting for “Mommy” (Mulgrew) (good one, Arthur), if they vote at all.
I’ve been contributing to our legal fund via the Organization of NYC Retirees since they first introduced this change (remember Mulgrew’s pitch about the greatness of the first offering: the Emblem Health/Blue Cross plan?). In both instances, he and Tom Murphy (our fearless retiree chapter leader) made as though it was a done deal. Just shut up and sign here, on the dotted line. Strong arming with the same tactic as with active members: play the numbers. Most people won’t be paying attention and it’ll get passed.
But there aren’t nearly as many retirees as there are active members in the UFT. And we’re talking about ALL the City unions in this situation. Firemen and cops aren’t very happy about the inflated power of the UFT and DC37. And a lot of us retirees (in all the unions) are the parents of currently serving members.
Word’s getting out. Knowledge is power.
Great article, Arthur. The Unity caucus has been underserving us for far too long. We need to keep getting the word out. And contributing to our legal fund.
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I would love to know what kind of healthcare insurance Congress has?
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See!
https://www.cnbc.com/2017/07/25/heres-how-much-members-of-congress-pay-for-their-health-insurance.html
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As long as we’re talking about what the UFT has been getting away with, there are other aspects to the functioning of that union that need exploration. How is it that the supervisors union is able to provide far better welfare fund benefits at no cost to their members and retirees than those the UFT retirees have to pay for and the UFT rank and file don’t get at all?
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