Council clears move to Medicare Advantage plan for retirees amid concern about insurer practices

The Milwaukee Common Council adopted the Finance and Personnel Committee's recommendations including a substitute resolution to transition the city's retiree health coverage from traditional Medicare parts A and B to a UnitedHealthcare Medicare Advantage Part C plan.

Alderman Brower raised concerns in committee and again at the council meeting, saying he had been "assured by a member of the administration" that the change could lower retirees' out-of-pocket costs but adding that "UnitedHealthcare is probably one of the worst corporate actors in this country right now," citing watchdog reports about privacy, billing and denial-of-care issues.

Supporters on the council, including Alderman Speicher, said the Medicare Advantage offering is separable from the city's other contracts with UnitedHealthcare and that the change appeared to benefit employees and taxpayers through broader benefits and lower costs. "If this marriage doesn't go well for the retirees part, we can always pull out of it," Speicher said, noting committee discussion had indicated the plans can be treated separately.

The council adopted the full committee report by roll call (14 ayes, 1 excused). The action included several personnel and pay-rate ordinances and a mayoral nomination for director of the Department of Employee Relations. The record shows council members pressed for ongoing monitoring of the new plan and noted unresolved questions about long-term vendor relationships and consumer protections for retirees.