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Sen. Moore applauds early success of Municipal Insurance Reform
October 1, 2008...Last July was the first opportunity for cities, towns, districts, charter schools, and planning councils to take advantage of the new municipal group insurance law, which allows municipalities the option of getting health insurance benefits for their employees and retirees through the Group Insurance Commission (GIC), according to Sen. Richard T. Moore, D-Uxbridge. The GIC reported that "new communities that joined the GIC were pleased with both the transition and savings that came with their decision to join." "It is very gratifying to see my legislation to allow towns to join the Commonwealth's Group Insurance program implemented successfully, saving taxpayers' money as well as reducing the cost of health care for municipal employees," said Sen. Moore. "My only regret is that town officials and employees in my own Senate district have yet to move forward to help reduce health care costs as the towns of Holbrook, Millis, and Groveland have experienced," Sen. Moore noted. Moore, who is the Senate Chairman of the Health Care Finance Committee, authored the legislation responsible for municipal group insurance reform, which was signed into law by Governor Deval Patrick on July 25, 2007. Many municipalities that signed on had expected a difficult transition for administrative reasons, and also had negative perceptions associated with joining a large state group insurance. In anticipation of challenges with administrative processes however, GIC staff members were readily available to take questions and to help town administrators through the day-to-day process. All municipalities responded positively to the system established, and were overall delighted with the support from GIC staff. New communities were also pleased with both the transition and the savings that came with their move to the GIC. The law provides communities with some relief from the financial pressures of rapidly rising health insurance costs. Towns such as Holbrook, Millis and Groveland have already experienced significant savings for both the town's budget and the employees' wallets. According to Michael D. Yuntis, Holbrook's Town Administrator, employees will realize a staggering 58 percent reduction in rates, although they will see increases in co-pays, and the Town will save seven percent ($212,314) during the first year alone. Municipal officials must employ a process known as coalition bargaining to negotiate collectively with union and retiree representatives through a Public Employment Committee. Agreement to enter the GIC requires approval of 70 percent of the Public Employee Committee, and administrators must notify the GIC of their participation by October 1, 2008 for coverage effective as of July 1, 2009. Municipalities that are considering payback in reduced health insurance premiums through the GIC should visit www.mass.gov/gic/. For more information on Sen. Moore's work in the Legislature, please visit www.senatormoore.com. |
