SEPT 2007 - Landmark Bill Now Law - Local retirees and their families may soon receive their health insurance coverage via the state"s Group Insurance Commission (GIC), instead of their city, town, county, etc.
The new GIC Municipal Health Insurance Law (Chapter 67, Acts of 2007) which was more than two years in the making, is seen as an option that may help reduce the cost of health insurance for municipalities, retirees and employees. Local governments, working through the coalition bargaining process, can now choose to enroll their retirees and employees in the state"s insurance plans.

While contribution rates would still be set locally, copayments, deductibles, plan design and choice of carriers would be placed in the hands of the now thirteen-member GIC. Two new members have been placed on the Commission under the new law, a representative of the Mass. Teachers Association and a representative of the Mass. Municipal Association. Once 45,000 local enrollees join the GIC, another two municipal seats will be added to the Commission (public safety union and a second MMA rep).
Local entities are now weighing the merits of transferring their members to the state"s insurance plans. Depending on a number of factors, the GIC"s eight insurance plans are, on average, less expensive than many municipal plans.
"The GIC offers very good insurance at an affordable price, but it is not a one-size fits all solution to the healthcare crisis. What may be a good idea for one community, might not work well for another," explained Association President Ralph White. "There is obviously apprehension at the local level in terms of giving up the rights to collectively bargain for insurance benefits. But for retirees, who would be given a vote in this process, joining the GIC could prove to be a very good deal."

True Team  Effort

In recent months, state Representative Rachel Kaprielian (D-Watertown) has been leading a statewide effort to educate local officials, employees, and retirees on the new law. She has been joined by GIC officials, who have been critical to the success of the new law, and others at a series of local forums designed to outline the plan, answer questions and jump-start the process of local consideration to join the GIC.

"A number of legislators (Senators Moore, Tolman, Downing and Rep. Kaufman) were instrumental in getting this complicated bill passed into law, but it"s been Rachel Kaprielian"s main focus for two years," said Association Legislative Liaison Shawn Duhamel. "If retirees are better off because of this bill, then it will largely be due to the efforts of Rachel. Even now that it has become law, she is still working across the state to promote it at the local level."

From the beginning of negotiations in 2005, our Association played a central role in finalizing the legislation that was signed into law by Governor Deval Patrick in July. Working together with the Mass. Teachers Association, American Federation of Teachers Mass., the Professional Fire Fighters, the Boston Police Patrolmen, AFSME, NAGE, and a number of other unions, our Association"s leaders agreed on a plan, with municipal officials, that we hope will help lower local insurance costs.

Facilitating the discussions was Joel Barrera, who is the project director for the Metro Mayors Council. Revere Mayor Thomas Ambrosino and Northampton Mayor Mary Clair Higgins led the negotiations for the mayors and municipal governments. The Metropolitan Area Planning Council was also a key player in the talks, providing critical research.

"This was a true collaborative effort from start to finish. Even though the negotiations were contentious at times, everyone checked their egos at the door and contributed toward crafting the law we now have on the books," said White. "I know the firefighters and police unions still have their reservations, but they stayed at the table and helped make this plan workable for our members.

"Time will tell if this is a good deal for our local members, but the decision is now in their hands. From the feedback that came in from the local forums, it looks like a number of communities and local unions are weighing the options."