GIC Municipal Health Insurance Option brochure by ejp19597


									ARE THERE OTHER COSTS?                                        IS THIS OPTION BENEFICIAL FOR                     GIC MUNICIPAL HEALTH
                                                                    ALL MUNICIPALITIES?
Municipalities pay for their costs of                        Although this option can save money for many         INSURANCE OPTION
evaluating and implementing the GIC option,                  municipalities and their employees and retirees,
plus an administrative fee to the Commission,                it may not be the right choice for all. For
which may not exceed 1% of premium; this                     example, some municipalities have joined joint
amount is only used to administer the                        purchasing arrangements that have helped to
program. The GIC does not use brokers and                    keep health care costs in check. Also, the GIC
there are no broker fees, commissions or
reinsurance/stop loss costs.
                                                             option only applies to health insurance.
                                                             Municipalities that join continue to provide
                                                                                                                  Q   LOW PREMIUMS
                                                             other benefits, such as life, dental, vision, or
       HOW DO WE PROCEED?                                    disability income insurance.
                                                                                                                  Q   COMPREHENSIVE OPTIONS
If it makes financial sense for your
community to look into the GIC option, your
                                                               For additional information, see the Municipal
unionized municipality must adopt Section
19 of Chapter 32B, Coalition Bargaining, to                        Resources section of the GIC’s website         Q   RATE INCREASES LOWER
bring together a Public Employee Committee                                                  than most municipalities
(PEC), made up of representatives of                                 Group Insurance Commission
employees and retirees. The decision to join                                    .O.
                                                                               P Box 8747                             have realized on their own
the GIC would be made collectively between                              Boston, MA 02114-8747
municipal leaders and the PEC. These                                           617-727-2310
negotiations will include:                                              TDD/TTY: 617-227-5181

 Q    Whether or not to join the GIC
 Q    If joining the GIC, the contribution ratio
      to be paid by the employees/ retirees and
      the municipality by plan type
 Q    Provisions for opting out of the GIC
      after three or six years
 Q    Additional provisions for Retired
      Municipal Teachers if they currently
      participate in the GIC’s RMT program.
For comprehensive information on this topic, including
information for non-unionized municipalities, refer to the
Chapter 67 Questions and Answers, available on the GIC’s
Also visit the Metropolitan Area Planning Council’s
   HEALTH INSURANCE OPTION?                                              HOW DO WE EVALUATE THIS OPTION?

Municipal health insurance costs continue        One way to get an estimated total current year          Complete the same calculation for each
to grow at unsustainable rates, resulting in a   cost of insuring your town’s employees and          GIC health plan and coverage type and add all
negative impact on municipal governments,        retirees through the GIC, is to do the following    results together.
employees, retirees, and taxpayers. With flat    calculations:                                           Third, compare the amount you calculated
or reduced municipal revenues, cities and            First, estimate which GIC health plan your          to your municipality’s health care expenses
towns are looking for relief from these              employees and retirees would select,                for the current year.
increases in an effort to attract and retain         factoring in the health plans in which they
qualified employees while maintaining                                                                    To estimate future savings, compare the
                                                     are currently enrolled, contribution splits     GIC’s premium trends applied to the GIC cost
services.                                            and whether the GIC offers a plan by your       estimate you just calculated with the rate
                                                     current carrier(s).                             increases your municipality experienced over
    The Group Insurance Commission (GIC)
provides health insurance and other benefits         Second, take the number of enrollees            the last few years applied to your municipality’s
to more than 300,000 state employees,                estimated to enroll in each health plan by      current health care expenses.
retirees, their dependents and survivors. The        coverage type (individual, family or                You also will need to compare and contrast
GIC’s buying power and expertise has                 Medicare) and multiply by twelve times the      the GIC’s health benefits with your current
                                                     full cost premium of that coverage for each     plan options. The GIC’s premium trends and
resulted in:
                                                     GIC plan multiplied by the municipal            current health plan benefits are on our website,
Q Lower premiums than most

                                                                                     [                              [
    municipalities can negotiate on their own

                                                 Current year full cost GIC premium rates are in
Q Comprehensive health plan options

                                                 the municipal resource section of our website
    Q Indemnity (Non-Medicare and
        Medicare options), which are
        available throughout the country
    Q Statewide PPO-type options
        (employees and Non-Medicare
        retirees/survivors), which are also
                                                   # of GIC Plan A
                                                                     [    x [12} x
                                                                                      GIC full cost
                                                                                      monthly premium
                                                                                      for GIC Plan A
                                                                                                            [   x
                                                                                                                     % Municipal
                                                                                                                     for this type of
        available in other New England                                                individual coverage            plan (e.g., HMO)
    Q Regional HMOs (Medicare and                    BACKGROUND ON THE LAW
Q Rate increases lower than most
                                                 Leaders of municipal organizations, public            Area Planning Council (MAPC) and chaired by
                                                 employee unions, retired municipal employee           John Hamill, former Chairman of Sovereign
    municipalities have realized on their own    organizations, state legislators, and GIC senior      Bank of New England. The group drafted the
                                                 staff began meeting in September 2005 to find         final legislation that carefully balanced the
                                                 solutions to rising municipal health insurance        priorities and concerns of all participants. This
                                                 costs. This Municipal Health Insurance                legislation allows municipalities to join the
                                                 Working Group was staffed by the Metropolitan         GIC’s health coverage.

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