Easthampton Retirees Win Insurance Subsidy, Finally change In Government Was Key

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Easthampton Retirees Win Insurance Subsidy, Finally change In Government Was Key

MAY 2000 - After a thirty-five-year struggle, which included 10 failed ballot initiatives, city of Easthampton retirees, including teachers, have finally succeeded in winning a health insurance subsidy.

By a vote of 5-1, the Easthampton City Council voted this January to pay half of the retirees’ and survivors’ health insurance premiums.

However, the Council vote didn’t come easily. Before the vote could be put on the table, a deal had to be ratified, whereby the city’s active employees would agree to pay 20 percent of their health insurance premiums rather than the 15 percent that was in their contract. The vote had to be accepted by all unions.

The process of obtaining this favorable vote by the members of the eight unions representing the employees took almost two years. At one point the school department custodians balked. And then the school secretaries became stalled on their vote.

“We had to sell the deal to every union,” said Donna Craig, a retired teacher who is the ad hoc chairman on retirees’ insurance for the city’s insurance advisory committee.

“One statewide union tried to convince its Easthampton members not to vote in favor of an additional five percent contribution. It was a long, sensitive process which was in danger of becoming unraveled at several junctures.”

When a unanimous union agreement was finally reached, the City Council kept its word, despite the protest of one councilor, Wesley LaValley II, who moved to put the matter before the voters in non-binding referendum, a move to show that public sentiment was against a favorable vote by the Council. Although LaValley’s motion was seconded, he was the only councilor to vote in favor of his proposal.

Several opponents of the plan presented their views, saying that the will of the community was not being heeded. “They should have put it before a vote,” said Richard Frennier, a local real estate salesman.

In the end councilors Daniel Rist, Joy Winnie, Alan Bouyea, Angelo Yacuzzo, and Morgan Mitchell voted to approve the measure while LaValley voted against. Councilors Merritt Loomis IV, Alan Zedonis and Edward Sparko abstained.

Mayor Michael Tautznik, who signed the measure, had earlier said he would support subsidizing health insurance for retirees if the members of the town’s unions would agree to pay half the costs by contributing an additional five percent in premiums. The five percent generated nearly $70,000 annually, about half the cost of the $135,000 needed to cover the retirees’ new benefit.

Craig Praised

Members of the advisory committee were unanimous in pointing out that Donna Craig was the true leader during the two years that the committee sought the retiree insurance subsidy.

“Donna planned the strategy. She researched the numbers and determined that if the employees would increase their contribution from 15 to 20 percent the city would be able to contribute half of the retirees’ costs,” said advisory committee member Mary Pepin.

“She also got after the council and mayor to commit themselves to a favorable vote if the unions would agree. There were some who felt she couldn’t pull it off. But Donna went right after the unions and individual employees explaining what was at stake for the retirees, winning them over one-by-one.”

Donna Craig, reluctant to claim special credit, in turn praised others. “Mary (Pepin) herself was a very active member of our team,” said Craig. Jim Dunham (retired firefighter and Easthampton Retirement Board Chairman) has been crusading for this benefit since before I became active. Rich Gwinner of the public works union helped to win his members’ support.”

Craig also praised Firefighters Local 1876 and its insurance committee representative, Buddy Kwolek. “The firefighters were the first to come on board,” she pointed out. “They were responsive right from the start, giving us a support base.”

She also wanted to credit City Council President Merritt Loomis for his support. “Mr. Loomis was definitely on our side. He and other councilors in a sense stuck their necks out, knowing that previous ballot initiative votes were against subsidizing retirees.

“Our Association’s history with Easthampton goes back some 25 years,” said Association President Ralph White. “We were involved with several insurance initiative votes when the community was a town.” In 1989 the vote was close. The retirees lost by a 50-vote margin - 1,271 in favor of helping retirees, 1,321 against. In the last referendum vote in 1991, the question was defeated by a 2-1 margin and it appeared to be a lost cause in that town.

The breakthrough came last year when a referendum vote changed the town charter to a city form of government. “The retiree insurance issue was no longer a ballot question. Under Chapter 32B (municipal insurance), decisions in cities are made by the city council or aldermen and mayor,” said White. “This enabled the retirees to focus on elected officials voting in an open meeting. Although Easthampton is a small city (16,000) compared to eastern Mass cities, the win by retirees shows what can be accomplished by a hard-working group of retirees and employees. Donna Craig and the rest of her team are to be applauded.”

Rates Effective This April

Easthampton’s new retiree insurance rates, which took effect this April, saw the monthly Medex premium rate drop from $176.75 per person to $88.27.

Network Blue, an HMO, dropped from $207 per person to $103.75. Health New England, another HMO, went down from 192.27 to $96.14.

Easthampton buys its insurance through the Hampshire County Insurance Trust located in Northampton. Several communities in Hampshire County belong to this trust which enables the participants to save money by enrolling as a large group.

Easthampton does not have an indemnity plan for members other than those covered by Medicare/Medex. Mayor Tautznik said that a mobile health plan for municipal employees who move away from the area is an important issue that must be explored. “We currently don’t have a plan that’s accepted nationwide,” Tautznik said. “For us to find a private indemnity plan anywhere else would incur significantly higher costs.”

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