A Rhode Island judge ruled Monday that Providence police and fire retirees may keep their existing health care coverage for now rather than be forced onto Medicare.
Superior Court Judge Sarah Taft-Carter ruled the city may not break a contract provision that promised them lifetime health coverage.
Police and fire retirees argued the Blue Cross is in their contract and that Medicare would cost them at least $1,200 a year each.
"I'm particularly pleased for the older retirees, the people in their 70s and 80s, because this was going to be a dramatic change in how they received health care benefits, more particularly the expense that was going to be involved for them," said Joseph Penza, the attorney who represented the retirees.
Fire and police retirees sued last year after the city won approval to move its retirees from Blue Cross to Medicare when they turn 65. The retirees asked the judge to stop the city from implementing the change, and the judge issued a preliminary injunction.
A financial review panel found the city's unfunded liability for retiree healthcare costs is more than $1 billion. The city says having retirees enroll in Medicare will save $9 million annually.
But the judge ruled that the city's serious financial problems don't trump a contract and that the city knew for years that giving retirees free health insurance was going to add up.
"It's not this administration's fault. But it's not the retirees fault either. This is something that every community is facing. Other communities in their contracts with their police and fire already have the changeover. Perhaps Providence needs to do that," Penza said.
Mayor Angel Taveras said the city is considering its options, including an appeal directly to the Rhode Island Supreme Court.
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