On that date, then-Mayor John Yunitz and the Brockton City Council accepted a local government insurance law, Section 18 of Chapter 32B, which requires all Medicare-eligible retirees to enroll in Medicare Part B which insures doctors’ payments.

Because Medicare Part B saves a community millions of dollars in insurance costs that would otherwise be paid by the city, Yunitz agreed that City of Brockton would subsidize 75% of the Part B premium that Medicare withholds from retirees’ Social Security checks.

On May 26 of this year 1,600 Brockton retirees or surviving spouses received a letter from current Mayor James Harrington saying that beginning this July the city would no longer pay its once-promised share of Medicare Part B. Since the current cost of Part B is $88.50 monthly the loss of a 75% reimbursement is now costing an additional monthly insurance premium of $66.38.

Harrington’s letter said in part that, “Since 2001 the city began to experience substantial state aid costs. At the same time as the state  has reduced its assistance, the city has encountered increased costs. Health insurance costs alone have increased about $15 million since FY2002, or almost 60 percent.” The Mayor also said that the 75% reimbursement would continue for retirees whose income is 200% or less of the Federal poverty standard.

Although the City Council could not reduce the Mayor’s budget on health insurance unless it pulled money from other accounts, hundreds of retirees stormed city hall at the next Council hearing to protest the cut in Part B subsidy.

Prior to the hearing all retirees had received a letter from Dorothy “Dottie” Varano, the feisty retirees’ representative on the city’s Insurance Advisory Committee (IAC), protesting the cuts and prompting them to contact the city councilors and Mayor Harrington. The Brockton Teachers’ Union, among others, also joined the protest.

At the hearing, councilors acknowledged that they had been inundated with calls from angered retirees, but that they were unable to make cuts in other accounts in order to reinstate the Part B money.

Among the protesters were a large number of Association members, including Henry Kowalski who has been teaching in Brockton for 20 years when he was “forced out in 1981 under Prop. 2 1/2 cutbacks.” With additional COLAs since that time, his pension is only $16,000.

“Retired teachers in general have higher pensions than many Brockton retirees. I believe my pension is closer to what a large number of former Brockton workers receive; therefore, I can identify with what it means to lose about $800 a year, or twice that amount for a husband and wife.” Kowalski said.

“I think it was unfair for the city to renege on paying its share of Medicare Part B. When these retirees were required to sign up for Part B, there was an understanding that the city would treat this as a component of their insurance plan which calls for a 75% payment on behalf of retirees.”

Gene Franciosi is a retired Brockton West Junior High principal who feels bad for a number of friends who are struggling with smaller pensions.

“One teacher retired early on a small pension because of a serious heart condition. He died shortly after retiring and his wife is now living on an even smaller pension,” he said. “The loss of the Medicare Part B reimbursement really hurts. Many retired city workers are struggling, just getting by.”

“What happened in Brockton is a repeat of what happened to members insured under the State Group Insurance Commission,” Association President Ralph White pointed out.

In late 2002, with her ignominious term as acting governor coming to a close, Jane Swift pulled almost $30 million of Medicare Part B refund money from the FY’03 state budget under her statutory “9C” powers.

“Under Governor Romney, who wants to be president, we’ve never been able to get that money restored in any budget; it would now be about $40 million yearly,” White said. “Members, in cities and towns that reimburse Medicare Part B, should be alert for any move to slash their reimbursements.

“Dottie Varano put up a great fight in Brockton and  did everything possible for retirees and survivors there. We have several members like Dottie on other local advisory committees, but we need even more.”