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Legislative Hearings Underway PDF Print E-mail
NOVEMBER 2003 - Committee Targets GIC Practices - After a short summer recess, state Legislators began their fall work in earnest beginning in early September. Key to Association members is the work being conducted by the Joint Committee on Public Service, before which all public retirement legislation is reviewed.

Chaired by Representative Robert Koczera (New Bedford) and Senator David Magnani (Framingham), the Public Service Committee is wrapping up the last of its public hearings on nearly 1,000 separate bills that were placed before it. The Committee has been meeting each Thursday to take testimony on each bill.

Unfortunately, the state's fiscal situation has prevented the Committee from acting favorably on the majority of the bills placed before it. As a general rule, most of the legislation, dealing with the pension system or health insurance laws, carries a significant price tag.

"We have been telling our members that this year is all about playing defense and protecting the benefits that are already in place from being scaled back due to the economy," explained Association Legislative Chairman Bill Hill. "The Committee has been very responsive and is trying to be helpful where they can. Those bills which have moved are either technical changes to the law that don't cost anything or they protect an existing benefit."

Association Bills Released

One area of particular interest to the Association, as well as the legislative leadership, is countering the effect of policy changes put in place by the state's Group Insurance Commission (GIC). Members are well aware of the dramatic impact that the GIC's unilateral decision to end the Medicare Part B reimbursement has had.

As reported in the story on page 3, the Association filed HB 239, which will require the GIC to reinstate the Part B refund. The bill was redrafted by the Committee to require the GIC to refund half of the Part B premium beginning with fiscal year 2005, which begins this coming July 1. After being released from Public Service and given a new number (HB 4167), the bill is now before the House Ways and Means Committee.

In addition, the GIC has instituted a rigid prescription drug policy, whereby many retirees insured through the state insurance plan are forced to pay large out-of-pocket amounts for their prescriptions. The new policy, called "Generics Preferred", comes on the heels of a three-tiered copayment system which penalizes retirees who are forced to take expensive brand-name drugs.

To offer a sense of fairness to retirees when it comes to the GIC's drug policies, the Public Service Committee has favorably released SB 1531. The bill, which was filed by Senator Richard Moore (D-Uxbridge), requires the GIC to establish an appeals process for retirees aggrieved by the Commission's prescription drug policies. SB 1531 is now pending before the Senate Ways and Means Committee.

Under the bill retirees, who demonstrate that a "medical necessity" requires them to take a name brand drug that also has a generic equivalent, will be allowed to purchase the drug at the lower copayment level. This would prevent the GIC from charging a retiree the full cost of a drug, as is the case under the new "Generics Preferred" program.

"We are very grateful to Chairman Koczera and the rest of the Committee for taking a hard look at these two important issues. The fact that both bills were reported out of the Committee favorably is a positive sign," said Association Legislative Liaison Shawn Duhamel.

 
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