N.Y. Panel Upsets Pataki Rule That Boosts Health Care Costs

The Pataki administration’s reinterpretation of a health insurance provision was ruled “arbitrary, capricious and contrary to the law” by an upstate New York appeals panel that found the state had no right to impose additional costs on state workers and retirees. In a 5-0 decision, the panel shot down a rule that ultimately increased health insurance costs for current and former employees. Five labor unions had challenged the state’s break with a 40-year practice, but were rejected at the trial level.

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