HEALTH INSURANCE INFORMATION FOR EMPLOYEES AND RETIREES

HEALTH INSURANCE INFORMATION FOR EMPLOYEES
UPDATED FEBRUARY 21, 2012

TO: All Town Employees and Retirees:

New materials have been uploaded to the website on current plans and proposed changes as permitted under Massachusetts General Laws Chapter 32B, Section 21-23. There is also an informational meeting scheduled for employees on Wednesday, February 29, 2012 from 5:00-7:00 at the Scituate High School Cafeteria. The Town is now in the 30-day negotiation period. These negotiations include how the required 25% of any first year savings realized from any changes may be put into a mitigation fund to help offset increased out-of-pocket expenses for employees and retirees. These negotiations are conducted with the Public Employee Committee (PEC) as provided by the statute and must follow the guidelines for collective bargaining. If the PEC and town officials do not reach agreement then the Board of Selectmen can implement those changes after approval by a panel created through the Commonwealth's Office of Administration and Finance.

Our goal is to continue to have every employee informed and knowledgeable about the law, what is allowed, and the process the Town is undertaking.

NOTICE 2/8/2011:
INFORMATIONAL MEETING
There will be an informational meeting for town/school employees and retirees on the proposed changes to health insurance on Wednesday, February 29 at 5:00 p.m. in the Scituate High School Cafeteria. Representatives from the health care providers will be present to answer questions as well as town officials.

NOTICE1/5/12:
At its meeting of January 3, the Board of Selectmen unanimously voted to accept the provisions of Massachusetts General Laws Chapter 32B, Sections 21-23 relative to health care plans offered to employees and retirees. In order to implement any changes prior to July 1, 2012, the Town must begin work immediately on finalizing and presenting a proposal to the Insurance Advisory Committee (IAC) on proposed changes in current co-pays and deductibles as well as a suggested plan (Mitigation Fund) for allocating 25% of the first year savings to employees and retirees. Our health care provider, Mayflower Municipal Health Care Group (MMHCG), will be voting FY 13 rates on its proposed "look alike" plans on January 12. Once we receive this we will develop a plan for the above to present to the IAC. Before any formal proceedings take place, a meeting of the IAC has been scheduled for Tuesday, January 17 at 3:30 in the Selectmen's Hearing Room at Town Hall.

TO:  All Town Employees and Retirees:

The materials contained here provide a variety of information pertaining to a recent amendment in state law that allows municipalities to make certain changes in the provision of health insurance plan design provided that those changes are first discussed with employees and retirees.  This statute was passed in August and allows communities, after following a prescribed set of requirements that includes a 30-day negotiation period, to make changes in certain aspects of health care plan design that  is comparable to the Commonwealth's Group Insurance Commission (GIC) health insurance, or to move employees into the GIC.  The law also requires all municipalities to report to the Department of Administration and Finance each year what it had done relative to this new statute. The law also requires that up to 25% of the first year savings be put into a mitigation fund to help offset increased out-of-pocket expenses for employees and retirees.

The Town of Scituate is a member of the Mayflower Municipal Health Care Group (MMHCG). MMHCG has undertaken a cost analysis of Scituate's current array of health insurance plans and developed recommendations for plan design changes that would  be comparable to the GIC  as well as potential cost savings if  the Town were to join the GIC. The projected total savings for both the town and employees from making these changes would be over $800,000.

As required by Massachusetts General Laws Chapter 32B, the Town has an Insurance Advisory Committee (IAC) that periodically meets to discuss the array of health care plans and can make non-binding recommendations to town officials about any changes. Our IAC has recently met to discuss the implications of the new state law passed in August that permits specific changes in health plan design relating to such items as co-pays, deductibles and/or prescriptions. However, because of time requirements for implementing any changes and attendant cost savings permitted by the statute in advance of the April annual town meeting, the Town must move forward in investigating and/or adopting them. As a result, the formal process allowed by the statute will be adopted.  This will happen in January. The Town will again meet with the IAC in January and if no progress is made, the Town will need to move to formally implement those changes by creating a Public Employee Committee (PEC), as required by the statute. The PEC will meet with town officials on the proposed health plan changes and if agreement is not reached, then the Board can implement those changes after approval by a panel created through Administration and Finance.

This website contains several links to information that illustrates the various current plans offered by the town and detailed plan design information for the newly proposed MMHG plans. The final website links include deductible and co-pay comparisons between the current plans offered by the town and the GIC Tufts Navigator benchmark plan for active employees and deductible and co-pay comparisons between the current Medex plan and the Unicare OME benchmark plan for retirees. The GIC benchmark plans are used for comparison because the newly proposed MMHG plans will have similar deductibles and co-pays as the GIC benchmark plans. We hope to have an FAQ and more information on the site as we receive more information so please check back often. Our goal is to have every employee informed and knowledgeable about the law, what is allowed, the process, and the potential changes the Town is undertaking.