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| Worcester Insurance Advisory Committee Seeks Solutions To Higher Costs |
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MARCH 2006 - Coalition Bargaining Being Explored - Among the various healthcare proposals, being circulated through the State House, is one that would allow municipalities to establish "Mini-GICs," modeled upon the state's Group Insurance Commission, to administer local health insurance programs (see governor's budget). This proposal begs the question - why set up this new entity when the municipal health insurance law (Chapter 32B) allows for the creation of coalition bargaining committees (Section 19) and requires the establishment of insurance advisory committees (Section 3)? Our answer is: you don't.
In earlier issues of the Voice, we have written extensively about Section 19 and coalition bargaining for municipal health insurance. We believe that this law offers the best mechanism for retirees, employees and municipal officials to work together and control healthcare costs. While coalition bargaining remains a local option, cities and towns, which have adopted Chapter 32B, are required by law to establish an insurance advisory committee (IAC). A retiree representative, along with local union representatives, sits on the IAC. According to Section 3, municipal officials must submit the health insurance plans, that they intend to offer to retirees and employees, to the IAC before they do so. If the IAC recommends changes, then officials must respond to them, explaining why they did not include particular suggestions in the final insurance plans. According to Insurance Coordinator Cheryl Stillman, "Unfortunately, the law provides the IAC with no teeth since the committee has no recourse if its recommendations are rejected. Despite this, in some communities, the IAC may be actively involved in the decision-making process." Worcester Update One committee, that has involved itself more actively in the decision-making process and seeking solutions to higher costs, is the Worcester IAC. Association member Ed McGovern, who is a retired Worcester teacher, represents the city's retirees on the IAC. In the January Voice, we reported on the controversy that arose in Worcester when the City Manager Michael O'Brien proposed changes in the insurance plans - changes that would have hurt retirees and employees. One of the criticisms, leveled against O'Brien, was that he did not consult with the IAC. McGovern spoke out against O'Brien's proposals. "In my opinion, the city manager was wrong and breached the law when he failed to submit his proposals to the committee," states McGovern. O'Brien soon recognized the error of his ways and met with the committee. "As an alternative to higher co-pays, we're asking health insurers to be more creative and step outside the box, for example, provide us with rates not only for individuals and families but also couples," according to McGovern. "We've also been exploring long-range solutions like coalition bargaining. "I agree with the Association. There's no reason for Worcester or any community to create a new and separate GIC. "Instead, municipal officials should be considering the adoption of coalition bargaining. And, at a minimum they should be utilizing the IAC as a much more effective mechanism in shaping healthcare plans for their retirees." |
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