09:45:19 04-Jul-2009
Port unions reject proposal to join state's insurance plan
Oct. 1--NEWBURYPORT -- The city's unions have voted not to join the state's Group Insurance Commission for the second straight year, prompting Mayor John Moak to ask them to take a vote on joining another program by mid-October.
City leaders and local legislators estimated that a switch into the GIC, which offers eight plans of insurance to state employees, could have resulted in a savings of $500,000 in health care costs, but employees said it would have changed their benefits for the worse.
Moak notified the City Council Monday that the Public Employee Committee voted not to enter the state's GIC program for the next fiscal year, which begins in July. Negotiations continue on the Blue Cross/Blue Shield tiered program, which is expected to generate similar savings, he said.
"We will keep you informed of any results of these negotiations," Moak wrote in his letter.
The vote tally was not close in terms of joining the GIC, the mayor said.
"I think they really want to look toward the Blue Cross/Blue Shield tiered program," he said Monday.
The city's seven unions also voted not to join the GIC last year. Moak has been meeting regularly with the Public Employee Committee, a group representing the unions, for several months. There is an individual from each of the city's unions on the committee, as well as a representative of the retired employees.
Under state requirements, the city had to vote on whether to join the GIC by Oct. 1 in order to be enrolled for fiscal year 2010, which starts July 1, 2009.
John Piretti, chairman of the Public Employees Committee, said the group had several reasons for not joining the GIC and reached its decision after more than 16 months of research and study.
"Our current plan has out-produced the GIC over the past two years," he wrote in a statement. "The GIC is not fully funded by the state and poses an unfunded mandate."
He added, "The GIC allows municipal employees to join the health programs only and not the full benefit package offered to state employees."
The city will now vote on whether to join the Blue Cross/Blue Shield tiered program that is being offered through the Mass. Interlocal Insurance Association, a service of the Mass. Municipal Association. Calculations by city officials show it will generate similar savings to the GIC if not more, the mayor said, since joining the GIC would have meant the city would have to hire additional staff to manage the program.
"We're in the stages of negotiating the Blue Cross/Blue Shield program," Moak said. He added that he is not "discouraged or upset" about the vote, saying the Blue Cross/Blue Shield program has "a lot of merit" and is equal in savings.
If the committee does not join the Blue Cross/Blue Shield program, he has the right to negotiate with each union individually, Moak said.
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2008-10-01 09:38:24 (last modified)