Town may terminate health insurance coverage for Medicare-eligible retirees
Op St Comp 80-105
The State Comptroller has issued an opinion indicating that a town may terminate the health insurance coverage of a retired town employee when the retiree becomes qualified for Medicare coverage benefits.
It appears that the view of the Comptroller is limited to local governments which are not participating in the State’s Employees’ Health Insurance Programs [NYSHIP].
Insofar as public employers participating in NYSHIP are concerned, Section 167-a of the Civil Service Law controls with respect to health insurance coverage available to NYSHIP retirees upon their becoming Medicare-eligible.
With respect to public employers that do not participate in NYSHIP there may be provisions in a collective bargaining agreement that would control the health insurance participation of an entity's retirees upon their becoming Medicare-eligible.