December 05, 2016 Health Insurance Buyout Bill Vetoed by Governor
KEEPING YOU INFORMED…
We are writing to update you about the status of the NYSHIP health insurance buyout issue. Governor Cuomo recently vetoed Assembly Bill A09175, which would have amended New York Civil Service Law § 161 to prospectively prohibit any law, rule, regulation or policy memorandum denying employees any negotiated or contractually-obligated health insurance buyouts. The Bill would have effectively nullified the controversial NYSHIP Policy Memorandum 122r3 (“the NYSHIP Policy Memo”), which generally precluded participating employers and agencies from offering buyouts to employees who opted out of NYSHIP coverage, but remained enrolled as a dependent.
As a result, and consistent with our July 21, 2016 client memo (a copy of which is attached), the NYSHIP Policy Memo remains unenforceable. The Appellate Division, Third Department, has denied leave to appeal its prior decision finding the NYSHIP Policy Memo null and void. The State has filed directly with the Court of Appeals for leave to appeal, meaning that the litigation has not yet resolved.
Given the procedural status of the case, you should continue to abide by our outline of next steps set forth in our June 17, 2016 client memo (a copy of which is also attached). We will continue to keep you updated regarding the outcome of this litigation and its impact upon your contractual provisions or policies.
If you have questions regarding the impact of the Governor’s veto, please contact Matthew J. Mehnert at firstname.lastname@example.org, or one of our other attorneys.
THIS MEMORANDUM IS MEANT TO ASSIST IN GENERAL UNDERSTANDING OF THE CURRENT LAW. IT IS NOT TO BE REGARDED AS LEGAL ADVICE. THOSE WITH PARTICULAR QUESTIONS SHOULD SEEK THE ADVICE OF COUNSEL.
© Lamb & Barnosky, LLP 2016