MAY 2006 - Retirees Upset Over Mandate - In an apparent effort to reduce their retiree healthcare costs, more and more communities are turning to the Medicare program. Our members have been reporting to us that their municipal officials are proposing the adoption of a local option law which we call "mandatory Medicare."

Profile: Salem And Duxbury

One community, that just recently adopted mandatory Medicare, is Salem, "I was upset when I learned that Mayor (Kim) Driscoll proposed forcing us to take Medicare and immediately called the Association," said Sheila Lynch who retired from the fire department.

And Lynch was not alone in her reaction to Driscoll's plan. When the mayor's proposal was presented to the city council, dozens of retirees filled the chamber to voice their opposition.

"It's unfair that those, affected by this, will be paying much more for their insurance, while the city is saving millions over the next few years," claims John Burke, who sits on the retirement board as an elected member. "What was so disturbing for the retirees is that it appears they were ignored before the decision was made to go forward with this."

City Councilors heard the outrage from the retirees, but they were also warned by officials that unless they approved mandatory Medicare, the city would be facing serious fiscal problems. While Salem's retirees were initially successful in postponing any decision, the city council did eventually adopt the mayor's proposal for mandatory Medicare.

"Officials have met with retirees to explain the process of enrolling in Medicare Part B and the supplement plans," reports Lynch. "I guess that you could describe it as we're making the best of the situation."

Retirees in other communities are also claiming foul by their local officials. Take, for instance, the town of Duxbury.

According to Association member Dick Bayramshian, "Once we learned that mandatory Medicare was on the warrant for the spring town meeting, myself and other retirees joined together and swung into action. I became the de facto point person for our group with the Association staff, and we incorporated their suggestions in presenting our case to town officials."

What came as a shock to Bayramshian and the others was the fact that the town's insurance advisory committee (IAC) had not been operating for some two years. "This came to light as we pressed town officials on what due process had been followed in reaching their decision to mandate Medicare," reports Bayramshian. "It's through the IAC that we have at least some voice in the process, and here it hadn't been utilized."

This revelation, as well as other strong arguments against the mandate by Duxbury's retirees, prompted town officials to postpone a decision at this spring's town meeting. But it's expected to be taken up in the fall.

Across The Commonwealth

"What's been happening in Salem and Duxbury has been occurring throughout the Commonwealth," comments Association Counsel Bill Rehrey. "I've spoken with countless members across the state who are very concerned about this issue.

"One, who comes to mind, is John Kirchhof - the retired police chief for Wilbraham. John has been the retiree representative on that town's IAC (insurance advisory committee) for some 2 years."

It turns out that Wilbraham, along with the towns of Longmeadow, East Longmeadow and Hampden, are joined together, for health insurance purposes, under the Scantic Valley Regional Health Trust. This trust has been considering whether these four towns should adopt mandatory Medicare.

"Representing the retirees in my town, I'm very much concerned whether if we're mandated into Medicare, we'll be getting equal benefits at comparable cost," states Kirchhof. "Unfortunately, as I see it right now, that won't be the case since it appears that some of us could be paying double for the same coverage.

"As I understand, the law requires that we receive 'comparable actuarial value' when we are transferred over to the Medicare program. I'm not from Missouri, but show me how it can be of comparable value when our cost goes up by so much."