Healthcare
Good News From Dracut | Good News From Dracut |
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SEPT 2007 - Over two years ago, Dracut joined the list of towns that adopted the coalition bargaining law (Section 19, Chapter 32B). As of now, the news from there is good for the town retirees and their health insurance.
“I’m pleased to report that, beginning this fiscal year (July 2007), our health insurance premiums have dropped by as much as 7.1%,” reports Mary Jones who is the Association’s designee on the PEC (Public Employee Committee). To remind our readers, the PEC includes an Association and union representatives and negotiates with town officials over the health insurance package for all employees, retirees and survivors. “I’ve been the Association’s designee since the PEC’s inception and seen firsthand that coalition bargaining can work successfully,” continues Jones. “We’ve been able to bring costs down for retirees, survivors and employees while more than adequately maintaining our insurance reserves.” “I agree with Mary’s assessment,” states PEC Chairman and Fire Captain Andy Powell. “When I’m asked about coalition bargaining in my part-time position with Boston Benefit Partners, I’m able to include as part of my answer how successful it’s been for Dracut.” There’s other good news from Dracut. It’s expected that the town will receive about $100,000 in retiree drug subsidies (RDS) from the federal government. According to Jones, the RDS money will eventually be deposited into the insurance reserves. Dracut’s decision is in line with the Association’s longstanding position that RDS money must be designated for retirees and their health insurance cost. “Only a handful of towns have been able to enact special legislation that allows them to establish a separate trust fund for future retiree healthcare costs,” comments Legislative Chairman Bill Hill. “Until our Association-sponsored legislation (H1140), that would allow any town to do the same, is enacted, Dracut’s decision to deposit the RDS money in the town’s insurance reserves is a viable option. Hopefully, H1140 will become law shortly.” |
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