| Insurance Controversy Brewing In Haverhill |
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NOV 2006 - Retirees Begin To Organize - Haverhill officials have struck a nerve with their retirees
over the increases in their insurance premiums. And, from what we’ve heard, our
Haverhill members intend to do
something about it. One of the biggest increases are the premiums paid by retirees for HMO Blue. That’s primarily because city officials upped the retiree’s premium contributions from 10% to 15% this past July, with another 5% increase (to 20%) planned for next July. According to Association member Dan Fasulo, who rose through the police ranks and retired in ‘95 as chief, “Right now, a couple is paying 64% more, in dollars and cents, for HMO Blue each month. There’s no question that this creates a hardship for some (26% of those affected are over 65 or disabled), and it can only gets worse next year when the second increase kicks in, which means they’ll easily be paying double what they were paying before this past July.” Retirees, insured under HMO Blue, are not the only ones affected. According to Deputy Fire Chief Lewis Poore, who is an elected member on the city’s retirement board, Medicare retirees are seeing a 12% increase in their Medex premium. Editor’s Note: Medex enrollees contribute 25% of the monthly premium. Also, the Insurance Advisory Committee recommended a 9% increase in their premiums. “While higher premiums are, unfortunately, part of the process for now, I believe this increase isn’t reasonable, states Poore. When one considers that the city expects to receive between $500,000 to $600,000 from the feds under the retiree drug subsidy and that the reserves in the (insurance) trust fund are up to 30% from 16%, then how can you justify a double digit raise in the Medex premiums. Most of our retirees simply can’t afford to keep paying these increases.” It’s particularly upsetting to the Haverhill retirees that officials implemented the increases without any advance notice. “What’s happened in Haverhill – retirees being told after the fact – has unfortunately occurred elsewhere,” reports the Association’s Insurance Coordinator Cheryl Stillman. “While officials can argue that they’re not technically required to bring in the retirees beforehand, they have to admit that such an approach is better and fairer when it comes to this critical issue.” “My friends and I read in the Voice about the success that the Somerset retirees had in defeating increases in their town,” continues Fasulo. “It’s not too late to do something about it. What’s happened to us in Haverhill can be fixed.” |