Beginning this July, under Boston's new contract, retirees will pay $237.80 (individual) and $549.88 (couple) each month for this plan. Current rates are $192.00 and $451.00. Retirees pay 25% of the total cost.

"The decreasing pool of participants among Boston's employees and retirees in the Blue Cross Master Medical indemnity plan keeps driving the cost up," says Association Insurance Coordinator Cheryl Stillman. "Also, there is high claim utilization within this pool."

Most retirees over age 65, and Medicare eligible, belong to the Blue Cross Medicare Supplement Plan, and will be paying $97.96 (individual) and $195.92 (couple) in July. Members are currently paying $86.80 and $173.68. These retirees have the same freedom of choice as Master Medical enrollees.

There are also five Medicare HMOs available, with the rates averaging about $24.00 monthly beginning in July.

"Retirees under age 65, and thus not eligible for Medicare, are in something of a bind. They would like freedom of choice, but can't afford the Master Medical Plan," said Stillman.

Tom Donahue, age 59, is a Boston Penal Dept. retiree living in Weymouth. Tom and his wife Cathy will be dropping their Master Medical plan and switching to an HMO. They are "leaning" toward Harvard Pilgrim, which would cost $95.92 to cover both of them.

"We'd like to stay in the Master Medical Plan," said Tom's wife Cathy, "But it's impossible. The rates are outrageous for retirees. I've checked, and found that Harvard covers our doctor and my neurologist. We want to do some more research before making a final decision."