ONLY A HALF DOZEN MUNICIPALITIES HAVE SIGNED UP FOR THE COMING YEAR TO A STATE HEALTH INSURANCE PROGRAM…AN OPTION CREATED TO SAVE CITIES AND TOWNS MILLIONS OF DOLLARS. A LAW PASSED IN JULY LETS CITIES AND TOWNS JOIN THE STATE’S GROUP INSURANCE COMMISSION, OR GIC, WHERE PREMIUM INCREASES ARE TYPICALLY HALF OF WHAT MOST EMPLOYERS PAY. MUNICIPALITES CAN NOT JOIN UNLESS 70% OF UNION LEADERS APPROVE THE MOVE. GIC DIRECTOR DOLORES MITCHELL SAYS SHE EXPECTED A SLOW START.
This has been a very strenuous effort that the communities have to make, not only educating their board of selectmen, but also the union people who have to make a big decision. And the time frame was very very brief.
ON FRIDAY, HOUSE SPEAKER SAL DIMASI IS EXPECTED TO ANNOUNCE A ONE MONTH EXTENSION OF THE OCTOBER FIRST DEADLINE FOR JOINING THE GIC …WHICH COULD GIVE ANOTHER DOZEN OR SO COMMUNITIES TIME TO GET APPROVALS NEEDED TO ENROLL. BOSTON MUNICIPAL RESEARCH BUREAU PRESIDENT SAM TYLER IS DISAPPOINTED WITH THE RESULTS SO FAR. TYLER SAYS IT MAY BE TIME TO LET COMMUNITIES TRANSFER INTO THE GIC EVEN IF UNIONS DON’T APPROVE THE MOVE.
This is one of the drivers of municipal spending and if the solution is, over 4-5 years, towns may join, some may not, that isn’t really the solution this GIC bill was touted to be.
BUT REPRESENATIVE RACHEL KAPRELIAN, WHO SPONSORED THE INITIAL BILL, DOES NOT FAVOR FORCING CITIES AND TOWNS INTO THE STATE’S INSURANCE SYSTEM.
There’s no more powerful incentive than being able to save hundreds of thousands and in some cases millions of dollars. But the decision should be in the best interest of the municipality and only the municipal leaders will be able to ascertain that.
WHAT’S YOUR TAKE…SHOULD THE STATE PROD MORE COMMUNITIES TO JOIN THE GIC?
Why are we surprised that so few communities have been unable to reach a decision to give up their right to negotiate health benefits?
The Oct. 1 deadline was far too tight to (a) educate members about the differences in plan designs — which are not insignificant, (b) convince members that giving up their ability to bargain benefits was in their best interest, and (c) schedule and hold a vote on making the switch. August is generall a lost month, and September can be a tad hectic for at least one major union — the teachers. So, in essence the time to make a decision boiled down to a few intense weeks of disussions on a major contract item — health insurance.
The one-month extension may help a few more communities make the switch, but let’s not jump to the conclusion that we need to force cities and towns into the GIC just yet.
Unfortunately, the decision is not in the hands of municipal leaders–its in the hands of the unions. The law creates a very high threshold for entry into the GIC, virtually guaranteeing that cities and towns will have to make large offsetting concessions to get the votes needed at the margin. This is a poor compromise, which will force many cities and towns to lay off teachers and other workers in the coming fiscal years.