NYSHIP Lawsuit

(November 22, 2006, James Hennerty, Dep. Director of Contract Administration)

CSEA began a lawsuit earlier this year disputing New York State's decision to make our members pay for the cost of Medicare Part B premiums for retired employees. Previously, the State and local governments (for those in the NYS Health Insurance Plan) paid for the cost of the Part B premiums. CSEA contends that the change violates the Civil Service Law and is a change in terms of employment without negotiations, and a violation of the Health Insurance articles of the various CSEA-NYS Contracts.

State Supreme Court in Albany County ruled that CSEA was wrong and NYS right. We appealed.

The Appellate Division of Supreme Court, Third Department, has UNANIMOUSLY overruled Supreme Court and agreed with CSEA 100%! We expect the State to request the highest court, the Court of Appeals, to reconsider the matter. In the meantime, it looks like NYS may not get away with this cost-shifting through a back door.

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