PEF wins Medicare Part B lawsuit

By DEBORAH STAYMAN and SHERRY HALBROOK
The Appellate Division of the NYS Supreme Court, Third Department, has upheld PEF and other public-sector unions in their Medicare Part B lawsuit against New York state.

By a vote of 5-0, the Appellate Division reversed the lower court’s ruling and granted PEF’s petition.

“We have been informed the state will not attempt to appeal this unanimous decision of the Appellate Division,” said PEF associate counsel Harold Eisenstein who is representing PEF in this matter.

“This is a significant victory for all public-sector employees and retirees in New York, and represents a major cooperative effort among public-sector unions,” said PEF President Ken Brynien.

“It means the state may not continue to add a charge to the health insurance premiums for all NYS Health Insurance Program (NYSHIP) enrollees to cover the cost of reimbursing retirees for their Medicare Part B premiums,” Brynien said.

PEF argued the state violated the law in January 2006 when it unilaterally implemented a new interpretation of Civil Service Law 167-a, which requires the state (not NYSHIP enrollees) to reimburse retirees for their Medicare Part B premiums.

For the 40 years prior to January 2006, the state had paid the full cost of the Medicare Part B reimbursement. But under the new interpretation, the state shifted that burden to all NYSHIP enrollees who ended up paying the Medicare Part B premiums as a component of their health insurance premiums.

In January 2006, PEF filed the lawsuit, along with the NYS Correctional Officers and Police Benevolent Association, the NYS Police Investigators Association, and the Organization of Management/Confidential Employees.

Another suit on this same issue was filed by United University Professions, Civil Service Employees Association and American Federation of State, County and Municipal Employees District Council 37 in Albany County Supreme Court, and the Retired Public Employees Association filed an amicus curiae (friend of the court) brief in support of the cases.

All of the lawsuits were argued before the Albany County Supreme Court, which dismissed the petitions. The unions appealed and in a unanimous decision, the Appellate Division reversed the lower court’s judgments and granted the petitions.

“In an extremely straightforward decision, the Appellate Division ruled that based on the plain language of Civil Service Law 167-a, the legislative history of Civil Service Law Article 11 and the state’s correct long-standing interpretation of that statutory scheme, the state’s new January 2006 interpretation is arbitrary, capricious and contrary to law,” said PEF General Counsel William Seamon.

The Communicator Feb. 2007

Features
Saving SUNY hospitals
Spitzer's plan comes in focus
Lifesaving tools in NYS prisons
The Winner's Circle

Departments
President's Message
You Said It
Member Mobilization
Legislative Action
Retirees In Action
Getting To Know PEF
The Back Cover Ad
Membership Benefits &Travel

Union Matters
Black Caucus plan reception
Nurses' plan Lobby Day
Lawmakers visit CDPC
Sunmount member dies
Div. 343 mouurns member
Federal budget battles
The Joy of Giving
COLA is top contract issue
Military leave benefits extended
PEF wins Medicare Pt. B lawsuit
Redler earns activism award
E. Board prepares for future
E. Brd. vacancy filled, seats open
LabCorp gets Empire contract

Other Links
Professional Directory
Members' Classified
Communicator Feedback
Prefer The Online Edition?
How To Advertise with PEF
The Communicator Staff

Questions on this website?
Email the
Communicator Webmaster