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Bill

S 9945

Protects the health insurance benefits of retirees of public employers and contributions of Medicare-eligible retirees of public employers

2025 Regular Session Introduced by Joe Addabbo and 32 co-sponsors

Public employers cannot reduce retiree health benefits or employer contributions below December 31, 2021 levels for Medicare-eligible retirees and dependents.

REFERRED TO CIVIL SERVICE AND PENSIONS
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Bill Summary · S 9945

Summary of Bill S.9945 (2025-2026) – New York

Title and Purpose

  • Official name: Health Equity for Retirees Act (HERA).
  • Introduced in the New York Senate by Sen. Addabbo.
  • Purpose: Protect the health insurance benefits and employer contributions for public-employer retirees who are Medicare-eligible, ensuring benefits are not diminished relative to levels in effect on December 31, 2021.

Main Objective

  • Prohibits public employers from reducing health insurance benefits or the employer's contributions for retirees and their Medicare-eligible dependents below the levels in place as of December 31, 2021.
  • The bill explicitly preserves the ability of employee organizations to negotiate terms and conditions of employment; it does not limit collective bargaining power beyond health-benefit protections for retirees.

Key Provisions

Section 2: Prohibition on Diminishment

  • A public employer “shall not diminish the health insurance benefits” provided to retirees and their Medicare-eligible dependents or the employer’s contributions for such coverage below the 2021 level.
  • Diminishment includes any change that makes access to health care harder for retirees anywhere in the U.S. or its territories, such as:
    • Higher premiums, deductibles, coinsurance, or copayments.
    • Reduced employer contributions.
    • Mandating Medicare Advantage enrollment.
    • Requiring use of pre-designated health care panels.
    • Requiring pre-authorization delays for medically necessary procedures.

Section 2: Definitions

  • “Diminish”: Any change that could impede access or increase costs for retirees and Medicare-eligible dependents.
  • “Health care benefits”: All aspects of coverage, including costs (premiums, deductibles, etc.), coverage (inpatient/outpatient, preventive services, prescription drugs, mental health, vision, dental), and provider choice (ability to see any provider who accepts Medicare or who is in the plan’s network).
  • “Public employer”: Broadly defined to include the state, counties, cities, towns, villages, school districts, public authorities, public benefit corporations, and other government entities exercising governmental power in New York.
  • “Retiree”: A Medicare-eligible retiree of a public employer.

Section 3: Effective Date

  • Effective immediately.
  • Deemed to have been in full force and effect on and after December 31, 2021.

Affected Parties

  • Public Employers (state, counties, cities, towns, villages, school districts, public authorities, special districts, etc.)
    • Prohibited from reducing health-benefit levels or employer contribution levels below 2021 levels for retirees and their Medicare-eligible dependents.
  • Retirees and Medicare-Eligible Dependents of public employers
    • Protected from benefit diminishment and increased out-of-pocket costs relative to 2021 baseline.
  • Employee Organizations
    • Maintains the right to negotiate terms and conditions of employment, with protections for retiree health benefits retained.

Procedural and Timeline Considerations

  • Legislative Action: Referred to the Senate Committee on Civil Service and Pensions (as of April 16, 2026).
  • Retroactive/Effective Scope: The act is retroactively anchored to December 31, 2021 for baseline levels; benefits cannot be reduced below that baseline at any time after the act takes effect.
  • Sunset/Review: No sunset provision is stated in the text provided; ongoing protection is implied unless amended.

Practical Implications

  • Public employers would need to preserve retiree health benefit generosity and employer contributions at or above 2021 levels going forward.
  • Any plan design changes that would raise costs or restrict access for retirees could face challenge under this statute.
  • The bill does not curb collective bargaining rights but adds a protection layer for retirees’ health benefits.

If you’d like, I can provide sectional bullet points aligned to specific stakeholders (retirees, administrators, unions) or compare with current NY law on retiree health benefits.

Compiled from official sources — confirm details with the bill’s official record.

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