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Doug Kirchner retired from New York City Transit after 28 years driving a city bus. He said he recently had back surgery and got a nasty surprise.

“They paid the first part of the hospital bill. Now I got a letter last week. They're taking that back. It's almost $5,000,” said Kirchner. “They're jerking me around.”

Representatives of the Transport Workers Union say the cash-strapped MTA saved $40 million by renegotiating its health insurance last year and finding new providers.

However, the union also said that in January, the agency went a step further and cut members' health benefits, which is in violation of the union contract. Two weeks ago it filed a grievance.

“There are issues with prescriptions, issues with hospital stays. There is an across the board effort by the MTA to nickel and dime transit workers to death,” said John Samuelsen, president of the TWU.

One example, according to the union: a worker who had been paying a $2.50 co-pay for a cancer medicine now pays more than $2,000 a month because the drug's not on a preferred drug list.

“If they attack our benefits, we’re gonna attack back,” said Samuelsen.

MTA officials said the health care changes have not compromised the level of benefits for the workers and added, "Since the change was implemented... we have worked closely with the union in a joint committee to promptly address scattered issues that arose in the transition."

The TWU contract expires in January. Negotiations aren't supposed to begin until next month.

An arbitrator is scheduled to hear a complaint on Wednesday related to the MTA allegedly violating its current health care contract with the union.