Then just as the company gets back on its feet, comes news that HPHC is discontinuing Medicare coverage in Barnstable, Bristol, Plymouth, and Worcester counties. Due to strong financial losses, the HMO has chosen to no longer contract with medical providers in those counties.

"Retirees will not be without medical insurance," stresses Association Insurance Coordinator Cheryl Stillman. "Right now this only impacts the retirees under the Harvard Pilgrim plans. Each one of these people will be allowed to transfer into one of the other plans, before January 1."

The state Group Insurance Commission, along with municipal insurance plans, has begun notifying those retirees affected by the HPHC decision. Arrangements are being made with those retirees to transition them into a new plan come January 1. Retirees can expect to have selected a new plan by early December.

"While many different insurance products will be made available to retirees to transfer into, the Association highly recommends that our members join the Optional Medicare Extension plan under the GIC or a Medex plan locally," says Stillman. "Members on Medicare should not take the risk of joining another HMO, there is far too much instability in that market right now."