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Coalition Bargaining: Offers Innovative Approach To Local Health Insurance PDF Print E-mail
JANUARY 2003 - Methuen Adopts Local Option Law - As communities tackle the challenge of escalating costs in order to maintain quality health insurance for its retirees and employees, they may take a long, hard look at an Association sponsored law that has been on the books for almost 10 years. And some municipalities, like Methuen, may in fact adopt that law which is commonly referred to as coalition bargaining.In 1993, we heralded the passage of coalition bargaining - a local option law which offered an innovative approach toward establishing a municipality's group health insurance plans. "Coalition bargaining provides a collaborative process in which municipal retirees, employees and officials would be working together to develop mutually agreed-upon health insurance plans," according to Legislative Chairman Bill Hill.

"More importantly to our members, the law offered important protections and benefits for retirees and survivors. We fought hard back then to ensure that these provisions remained intact."

Methuen Is Latest Addition

Over the years, we have reported on developments in the towns of Framingham and Lexington which had adopted coalition bargaining. (See March 2001 Voice for the most recent report.) Now the city of Methuen can be added to the list of municipalities to adopt coalition bargaining.

During last spring, Methuen, like many communities, faced difficult problems, particularly cost, when it came to the health insurance plans to be offered retirees and employees. While working toward solutions, local union and retiree representatives raised concerns over proposed changes in the existing insurance plans, scheduled to take effect on July 1 (2002).

Coalition Bargaining Law Highlights

  • Establishes an employee health care bargaining committee comprised of a representative of each collective bargaining unit and a retiree representative appointed by our Association.
  • Requires that health insurance plans offered by a community must be approved by a 70% vote of the committee, with each union representative having a vote equal to the insured membership of the work force and the retiree representative's vote set to 10% in each community.
  • Provides that retirees, survivors and employees all pay the same premium percent contribution toward their health insurance plan.
  • Eliminates the requirement that a community offer an indemnity plan, but if coverage is provided through HMOs or PPOs, out-of-area retirees must receive the same benefits as in-area retirees.

According to Jim Trott, president of the local firefighters union (#1691) and elected member of the Methuen Retirement Board, "There was a sense among the group that something more should be done to provide good affordable health insurance. We felt the time may have been right to move in a new direction - in our case, coalition bargaining."

After successfully convincing city officials to pull back on the proposed changes, the next step was to persuade them to accept coalition bargaining. "Many - in and outside the city, including Bob McCarthy and Ken Donnelly of the Mass Professional Firefighters - deserve thanks in achieving the ultimate goal. Because of their combined effort, when Mayor Sharon Pollard presented coalition bargaining to the city council, it was adopted unanimously," reports Trott.

With its establishment, the coalition bargaining committee has begun its work. At press time, they are reviewing the results of a health insurance survey. Until at least next spring, Methuen's retirees and employees are insured by Tufts PPO and Blue Cross/Blue Shield HMO.

According to advocates of coalition bargaining, other communities are considering its adoption. Updates will be issued if they choose to follow Methuen's path.

 
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