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NOVEMBER 1998 - Under Coalition Bargaining - Despite
its critics, the coalition bargaining law continues to operate
effectively for the town of Lexington. Under the law, a coalition
bargaining committee of town and union representatives, including one
representing our Association , implement and maintain the health
insurance package for the town’s retirees, employees and survivors.
Opponents of the law contend that coalition bargaining ties the hands of town officials when it comes to cost controls. But the Lexington experience proves their criticism to be misleading, at best. According to Bob Cunha, a Lexington firefighter and committee co-chair, “Our town has realized approximately $5 million in savings since coalition bargaining was started here back in ‘94. We’re able to achieve these savings without substantially changing benefits for our retirees and employees.” Joins MIIA Program As we reported last year (July 1997 Voice), the Lexington committee challenged the escalating administrative fees being charged by Blue Cross/Blue Shield. In response, the committee decided to continue with BC/BS after July 1,1997 but also to seek bids from other insurers and providers. Upon reviewing the bids, Lexington’s committee discovered the lowest cost came from a program, about which our Association has reported over the years, most recently last September. It turned out that the MIIA (Massachusetts Interlocal Insurance Assoc.) program was the most attractive option for the town. “Under the MIIA program, Lexington would save approximately $500,000,” says John Walsh, the Association’s committee representative. “And just as important, we would be able to keep BC/BS products that our retirees prefer.” After months of negotiations, Lexington joined the MIIA program earlier this year. In addition to BC/BS’s Blue Choice, HMO Blue, Medex and Senior Plan, Lexington continued Harvard/Pilgrim for current enrollees in that plan’s clinics. While the Harvard/Pilgrim enrollees will continue to contribute 15% of the premium, those in HMO Blue will be paying only 10%. Enrollees in Blue Choice continue to contribute 20% while Delta Dental is offered at a 50-50 split in premium. Under coalition bargaining, retirees, living outside the state, are treated as if they live in the Blue Choice network. In other words, every retiree is entitled to the same benefits and coverages regardless where one chooses to live. |
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