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Framingham Health Insurance Controversy Resolved PDF Print E-mail
MARCH 2000 - Coalition Bargaining Committee Stands Firm - After three years of ongoing, and at times bitter negotiations, Framingham town officials and the coalition bargaining committee, on which the Association sits, have reached agreement on the town's group health insurance program. Bob Foley, a retired police captain, is the Association's representative on the bargaining committee.

"It's been a difficult negotiation, but the bargaining committee stood firm in its commitment that no one would be unduly hurt by changing the (health) insurance program," according to Foley. "That's particularly so when it came to our out-of-state retirees and making certain that they were properly insured."

By way of background, the coalition bargaining committee, on which Bob Foley serves, was created back in 1993. That's when Framingham accepted the then newly enacted municipal coalition bargaining law (Section 19 of Chapter 32B) which establishes the committee.

Since 1993 the bargaining committee, which includes representatives from the various employee unions, as well as Foley, have been negotiating and agreeing with town officials on the health insurance package for all retirees, survivors and employees. In fact, we reported back in 1996 that the coalition was operating smoothly as it entered its third year of operation (see January 1996 Voice). But a year later, it hit a significant snag.

Impasse Over Continuing Master Medical

What happened is that the town discovered over a $450,000 shortfall in its health insurance pool, caused not by overuse but unfortunate miscalculation on appropriations into the pool. Naturally this led town officials to push for dramatic changes in the health insurance program, including the elimination of the Blue Cross/Blue Shield Master Medical.

"There was no way we could agree to totally dropping the indemnity plan and leaving retirees, who moved out of state, with, at best, vastly inferior coverage," states Foley. That belief was fully supported by the bargaining committee.

While the committee offered various proposals, including Master Medical for out-of-state retirees and employees, town officials refused to agree, wanting to drop Master Medical totally. Consequently, an impasse arose and continued throughout 1998 and most of 1999.

"Fortunately for retirees and survivors, the coalition bargaining law prohibits municipal officials from unilaterally changing the health insurance program. As long as the impasse continued, Master Medical still had to be offered to all retirees and survivors.

Over the months the rift between town officials and the bargaining committee widened. It got so bad that in September 1998 the board of selectmen considered sponsoring a special town meeting to rescind acceptance of the coalition bargaining law. (Editor's Note: The coalition bargaining law requires that the bargaining committee agree to rescind; otherwise, the town meeting vote could not be effective.)

"Personally I believe that the bargaining committee proposal was a reasonable and appropriate solution," says Foley. "Throughout the deadlock, it bothered me that the town officials were allowing the fiscal crisis to worsen when we had a good compromise on the negotiating table."

Agreement Finally Reached

Finally, a major breakthrough occurred when a new town administrator took charge. "It was like a breath of fresh air, easing all the ill will that rose to the surface during the impasse," according to Foley.

With new key participants in the negotiations, an agreement was reached on the town's health insurance plan which took effect on January 1 and extends for the next 2 years. Major features of the plan are as follows.

First and foremost, Master Medical will continue for retirees and employees who are currently in the plan and, most importantly, out-of-state retirees and survivors. For in-state retirees, who are not Medicare eligible, there will be Blue Choice (BC/BS PPO) and HMO Blue.

Even though enrollment in the Fallon HMO was closed, retirees could apply for such coverage through the Health Insurance Review Committee, created under the agreement. This committee includes 2 members of the bargaining committee.

As for retirees under Medicare, they can continue with their Medex coverage, HMO Blue Senior or Fallon Senior. While these retirees will continue to receive their Part B refund, the agreement calls for the town's obligation for the refund to be capped at $300,000 which will be deposited in a special retiree fund.

Retirees will contribute to the premium cost according to the particular insurance plan to which they belong. They will pay 25% of the Master Medical ($134.50 for individual, $335 for family), 20% of Blue Choice ($56.40 for individual, $147.40 for family), 10% of HMO Blue ($21.90 for individual, $57.40 for family) and 10% of Fallon ($20.19 for individual, $54.53 for family).

In-state retirees can also join the dental insurance plan. This is an added benefit that many municipal plans do not currently offer to their retirees.

"We've been working with our rep, Bob Foley, over the past 2 years on this issue," reports Association Insurance Coordinator Cheryl Stillman. "We're pleased that the coalition bargaining law worked and protected out-of-state retirees from being placed in what could have been tragic circumstances medically and financially."
 
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