SEPTEMBER 2005 - Federal Subsidy Key To Efforts - When retirees insured through the GIC lost their Medicare Part B refund to budget cuts in 2002, what stung the most was knowing that the GIC, and by extension the state, was saving millions while they were forced to pay for Medicare Part B. Currently, a retiree enrolled in Medicare Part B pays $938.40 ($1,876.80 per couple) a year to the federal government.

GIC Blocks Amendment

The amendment, which was filed by Senator Marian Walsh (D-West Roxbury) along with several other Senators from both parties, received the support of Senate Ways and Means Chairman Therese Murray (D-Plymouth). Unfortunately, the provision was not included in the final version of the budget, known as the Conference Committee report, that was sent to the governor in late June.

Reports from legislative leaders, along with information from the GIC obtained by the Association, suggest that GIC officials may have played a major role in blocking the amendment's passage. Sources indicate that the GIC, along with the Romney Administration, expressed enough doubt that the federal subsidy may not materialize, that concern grew within the ranks of the legislative leadership.

"Our amendment was very straightforward and clear. No state funds were being used and the Part B reimbursement would be contingent upon the state receiving the federal subsidy," said White.

"For the GIC to have muddied the waters by creating unnecessary skepticism was uncalled for. We are always willing to work with people to make a bill or proposal stronger. But it seems that the intention all along was to derail our amendment. With the hundreds of millions being saved, the lack of support from the GIC is unacceptable."