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Healthcare
Federal Ruling Allows Private Employers To Treat Medicare Retirees Unfairly
JULY 2004 - State Protects Public Retirees - When it comes to health care benefits, this state's private sector retirees have far less protection than their public service counterparts. Over the years, we reported on examples of the disparity - just look at what happened to Polaroid's retirees (July 2002 Voice).
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New Boston Health Insurance Pool To Be Created
JULY 2004 - Awaits Final Action As Part of Fiscal'05 Budget - An innovative approach to municipal health insurance pools may be created by way of the state budget process. Both the House and Senate included in their versions of the Fiscal '05 Budget a provision, enabling nine communities surrounding Boston - namely, Cambridge, Chelsea, Everett, Malden, Medford, Melrose, Quincy, Revere and Somerville - to join that city's health insurance program. At press time, a House-Senate conference committee continues to resolve differences between the two versions before the Budget is eventually placed on the Governor's desk for his signature.
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Lynnfield Retired Teachers No Longer Insured Under State Health Program
JULY 2004 - Retirees Remain Upset Over Decision - Despite their best efforts, Lynnfield's retired teachers were unable to stop their town from transferring them out of the state's Retired Municipal Teachers' (RMT) insurance program, administered by the Group Insurance Commission (GIC). Beginning this July 1, these retirees and their families will be covered under the town's insurance plans for its active employees and other retirees.
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Holyoke Adopts Coalition Bargaining On Health Insurance For Retirees/Employees
JULY 2004 - Holyoke has joined a select group of communities, including Framingham, Lexington and Methuen, whose retirees and employees, together in one bargaining committee, negotiate with municipal officials for their health insurance coverage. This local option, toward providing health insurance for public retirees and employees, is known as "coalition bargaining."

"Our Association originally sponsored the local option law that allows for coalition bargaining (Section 19, Chapter 32B) and remains one of its staunchest supporters," comments Association Legislative Chairman Bill Hill. "We're pleased to see Holyoke join the coalition ranks and encourage other communities to consider the same."

Jack McCarthy: Association's Coalition Designee

As the chart shows (below), our Association designates a retiree representative to serve on Holyoke's coalition bargaining committee. One candidate, for the committee seat, stood out.

"Retired firefighter Jack McCarthy was the clear choice," announced President Ralph White. "We've supported Jack as one of the elected members on Holyoke's Retirement Board because we've seen firsthand his outstanding service on behalf of the city's retirees, and we're confident that we'll see the same from Jack on the coalition."

In addition to his retirement board position, McCarthy has been serving as the retiree representative on Holyoke's Insurance Advisory Committee (IAC). Under the municipal health insurance law (Section 3, Chapter 32B), the IAC is an advisory body, which reviews the city's health insurance proposals and makes recommendations.

"I'm grateful that the Association has given me this opportunity to serve my fellow retirees," states McCarthy. "And, I look forward to the challenges that the bargaining committee will be facing as it seeks to provide affordable health insurance of the best quality."

Currently, Holyoke retirees and employees contribute 50% of the health insurance premium. Holyoke offers a number of Blue Cross/Blue Shield products under its health insurance program and will continue to do so under coalition bargaining.

Editor's Note: As we went to press, a question remained whether the Pioneer Health Plan would continue to be offered, at least for now.

Troubled Water In Framingham

An article in the Town Meeting warrant, that would potentially endanger the Framingham coalition's insurance agreement, received a favorable 75-53 vote by Town Meeting members on May 13. Framingham was the first community to implement coalition bargaining some 10 years ago.

The article, sponsored by Steven Kruger, representing the Framingham Taxpayers Association, says that Town Meeting will be reluctant to approve pay raises until the coalition bargaining agreement is repealed and the cost of employee and retiree health insurance is reduced significantly.

"This is a blatant attempt by The Taxpayers Association to force the abolition of coalition bargaining by threatening to withhold pay raises," said Framingham retiree activist Steve Arnold. "It cannot be tolerated.

"We gave up earlier pay raises in order to help the town obtain better coverage. We saved the town millions...we made sacrifices that people forget."

Town meeting member Tom O'Neil was successful in amending the article by including a resolution that requires the selectmen to establish a seven-member study committee, including employee or retiree membership. It will report to Town Meeting this fall.

This will at least temporarily forestall any activity created by the opponents of coalition bargaining.


Coalition Bargaining Law Highlights
  • Establishes an employee health care bargaining committee comprised of a representative of each collective bargaining unit and a retiree representative appointed by our Association.
  • Requires that health insurance plans offered by a community must be approved by a 70% vote of the committee, with each union representative having a vote equal to the insured membership of the work force and the retiree representative's vote set to 10% in each community.
  • Provides that retirees, survivors and employees all pay the same premium percent contribution toward their health insurance plan.
  • Eliminates the requirement that a community offer an indemnity plan, but if coverage is provided through HMOs and PPOs, out-of-area retirees must receive the same benefits as in-area retirees.
 
Medicare Drug Discount Card
JULY 2004 - Members Avoid Nightmare - With the announcement that Medicare prescription drug cards are now available, our members have been deluged with mail, phone and computer solicitations pitching these cards on behalf of a multitude of companies. In addition, there are other non-Medicare approved vendors peddling discount cards.
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GIC Makes Major Managed Care Change: Hospitals/Docs to Be Tiered
MAY 2004 - The GIC has taken a bold step that Executive Director Delores Mitchell describes as being the "next trend in managed care." That step is approving three new managed care plans to be offered to non-Medicare retirees/survivors and active employees.
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Increasing Rates Force Many Boston Retirees To Drop Master Medical
MAY 2004 - Increasingly high premiums are forcing many City of Boston retirees to abandon the once popular Blue Cross Master Medical Insurance Plan, which gives members freedom of choice of doctors and hospitals.
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