With Springfield facing a budget deficit that exceeded $50 million, city officials had called on the state for a financial bailout. In response, the Legislature passed Chapter 169 of the Acts of 2004, which created a Financial Control Board and granted it full legislative and executive control over the city government and its finances.

The three-member Control Board, appointed by Governor Mitt Romney, has proven controversial with Springfield residents, retirees and employees. In an attempt to regain financial control over the city, the Control Board has often run afoul of both retirees and active employees.

After raising insurance premiums on Springfield retirees and employees, the Control Board ushered in a new insurance provider, which many members have found to be inadequate. The Control Board also adopted Section 18, which requires all eligible retirees and survivors to enroll in Medicare Parts A & B.

In recent months, the Control Board, with the backing of the Romney Administration, has begun talks with the local retirees and unions to transfer into the state’s insurance plan. The current process, by which a municipality can join the state, can be found in the coalition bargaining law (section 19 of Chapter 32 B).

Under Section 19, each collective bargaining unit has a weighted vote that equates to its total membership. By law, retirees have an automatic 10% vote, as well as an Association representative on the Public Employee Committee (PEC). An affirmative vote of at least 70% of the represented groups is needed in order to trigger a move into the state plan.

Retirees Would Pay More

While it is generally agreed on that the insurance plans offered through the state GIC are, on the average, of higher quality and provide more comprehensive coverage than the plans currently provided by Springfield, some retirees could pay up to $60 more per month once enrolled in the GIC.

Springfield retirees, enrolled in Medicare, currently pay just $21 per month towards the city’s Medicare supplement plan with Cigna. Due to the 75/25 contribution split proposed by the Control Board, retirees would pay over $80 per month under the GIC’s Optional Medicare Extension Plan.

Local retirees, led by retired police officer Bob Brown, are now in talks with the Control Board and city officials in an attempt to reach a deal on the increased cost.

Brown, who has been appointed by the Association as our official representative on the PEC, says that the increase costs for a retiree could run into the thousands per year. “The contract we have with the city provides for free prescription drugs. When the city cut a deal to buy its drugs from Canada, it saved millions of dollars and our prescriptions have been filled without cost,” he said. “When you add the cost of increased premiums plus drugs we (retirees) could have an additional tab of thousands.

“While some city unions have listened to our (retirees’) complaints, we haven’t had the backing of all the unions. They just want to get the GIC transfer done.”
Editors Note: John Brouder and Carol Chandor of Boston Benefit Partners have once again proven to be a valuable resource on local health insurance matters. Our thanks goes out for their efforts and continued concern for public retirees.