July 21, 2016 NYSHIP Litigation Update
KEEPING YOU INFORMED…
We are writing as a follow up to our June 17, 2016 client memo (copy attached) regarding the litigation challenging NYSHIP’s Policy Memorandum 122r3 (“the NYSHIP memo”). The NYSHIP memo prohibits participating employers and agencies from allowing buyouts from a NYSHIP plan for employees who were enrolled in other NYSHIP coverage, e.g., through a spouse’s family NYSHIP plan, during the buyout period. The NYSHIP memo contains limited exceptions for out of compliance collectively negotiated and administratively established buyout programs.
As we advised in our June 17, 2016 client memo, the Appellate Division, Third Department, issued two decisions finding that the NYSHIP memo is null and void. We have learned that the State of New York has filed an application with the Appellate Division for leave to appeal to the Court of Appeals. If the Appellate Division denies this application, the State can then make a similar application directly to the Court of Appeals. We have been advised that the Appellate Division’s decisions have not been stayed pending the application for leave to appeal and, therefore, the NYSHIP memo continues to be unenforceable.
You should continue to abide by our outline of your next steps set forth in the June 17, 2016 client memo, as the State’s application for leave to appeal did not affect it. We will let you know whether the Appellate Division grants the application for leave to appeal and, if not, whether a similar application is made to the Court of Appeals.
If you have any questions about this litigation or your health insurance buyout contract provisions or policies, please contact Lauren Schnitzer or one of our other attorneys by calling (631) 694-2300.
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