As we reported in our September Voice, Chapter 67, Acts of 2007, which allows cities, towns and districts to transfer their health insurance to the State Group Insurance Commission, was signed by Governor Patrick on July 25th.

In doing so, a Public Employee Committee (PEC), representing employees and retirees, must first enter into an agreement with municipal officials under Section 19 of Chapter 32B (municipal insurance) that creates coalition bargaining for health insurance.

Most of the town officials waited until September to vote on a GIC transfer, leaving little time for the union and retiree representatives to properly negotiate the details of a contract, which would impact the future of their members.

Although a transfer of insurance to the GIC, in most cases, would seemingly save money for both the towns and the employees/retirees, there was apprehension by members of the Public Employee Committees (PECs) to vote for the GIC on such short notice.

The October 1 deadline for voting in 2007, or subsequent votes in future years, is necessary in order for the GIC to negotiate contracts with its providers in time for July of the following fiscal year.

Most of the PECs were not ready to vote, unless all the details of the contract had been properly addressed and in turn ratified by the individual unions. ÒI know our retiree designees on the PECs had the same concerns as the employee leaders that they were not given enough notice,” said Association President Ralph White.

"I venture to say, that given a year to negotiate, a number of cities and towns will be able to reach an agreement with their PECs by next October. There are concerns to be addressed in an orderly manner, especially the communities” willingness to pick up their share of the Medicare Part B premium.”

One town, Saugus, reached a signed agreement to join the GIC which was beneficial to most retirees. The agreement calls for a 90/10 split on HMOs and 75/25 on the indemnity plan. The town also agreed to reimburse retirees 60% of the cost of Medicare Part B.

"Hank McKenzie, our Association’s designee on the PEC, did a great job,” said White. “Convincing the town to pick up some of the Medicare Part B costs means a lot to these retirees.” McKenzie, a retired firefighter, is also an elected member of the Saugus Retirement Board.

In the final days of September the towns of Winthrop and Groveland also joined the GIC, with the towns of Marblehead, Millis, Swampscott, Wakefield, Wenham, and Montague not having reached an agreement with their PEC’s. Some towns were waiting for an expected extension of the October 1 deadline. Two regional school districts, Gill-Montague and Holomont have joined the GIC. 

There has been little activity by any cities except Newburyport and Quincy. Mayor Chip Clancy did float the idea of the GIC to the PEC, but it never got off the ground.

Because the law states that our Association will name the retiree designee on the PEC, we are attempting to create a network of retirees who would be interested in serving as our PEC designee in their city or town. The retiree must be insured by their community and preferably live in that community.

"We’re not necessarily advocating that any city or town join the GIC Ð it’s strictly a local choice,” said White. “But we want our members to be prepared and educated on the option if it is offered by local officials. Members interested in being our designees, should call or write to our office.”