Busy Agenda Set For 2010

JANUARY 4, 2010: The Massachusetts General Court is set to return this week, with full formal sessions scheduled in both the House and Senate. Legislative leaders are working to advance an education reform package that, they say, will put the state in place to receive $250 million in federal education aid.
Association officials are most interested in a pending proposal that would extend the Commonwealth’s and local pension funding schedules. While designed to lessen the financial pressure placed on the pension funds after the 2008 market crash, a funding schedule recalibration opens the door for the possible inclusion of a COLA base increase.

Opens Door For COLA Base Reform

JANUARY 2010 VOICE: Following a recommendation from the state’s public pension officials, Legislative Leaders and the Patrick Administration are now crafting a plan that will extend state and local pension funding schedules up to ten years.

Without such a change, annual pension fund appropriations would simply overwhelm state and local budgets. This was made clear at a State House hearing on November 9th before a packed audience in Gardner Auditorium. The hearing was chaired by Senator Thomas McGee (D-Lynn) and Robert Spellane (D-Worcester), co-chairmen of the Public Service Committee. 

Medicare Plans Not Impacted

JANUARY 2010 VOICE: Facing a $36 million deficit in the current Fiscal Year, the Group Insurance Commission (GIC) voted in November to increase copayments and deductibles on their non-Medicare plans effective February 1, 2010.

GIC officials point to an unexpected sharp increase in health care utilization as the cause of the deficit. For example, visits to the emergency room with flu-related symptoms are up 7% since July 1.

Would Not Have To Pay Increase In Part B Premium

JANUARY 2010 VOICE: Hopefully, the Congress will soon issue a reprieve to that group of members who are being forced to pay an increase in their Medicare Part B premium beginning January 1. Currently, legislation (H.R. 3631) is moving through the Congress that would stop any increase from taking effect.

As we reported earlier this fall (September Voice), members, who had to pay directly for Part B, would be hit with a higher premium. Beginning January 1, these "direct-pays" would have their Part B premium increase from the current $96.40 to $110.50 monthly.