The Act Relative to Municipal Health Insurance, enacted in July 2011, makes it easier for cities and towns to control rising health care costs by allowing changes to employees' health care coverage outside of the collective bargaining process.
Highlights of the legislation:
Changes in Collective Bargaining
These changes can give you the opportunity to consider new plan options like tiered networks and deductible-based products that can result in significant savings. You can find out more about your options in our coverage options section.
Moving into the Group Insurance Commission
If a municipality wants to move employees into the GIC, the legislation allows them to do so. Municipalities must, however, be able to demonstrate additional savings of at least five percent more than they would with local plan design changes, such as changing plans with Blue Cross Blue Shield of Massachusetts.
When municipalities join the GIC, they also must agree to participate for three years and offer only the plans selected by the GIC.
Staying with Blue Cross Blue Shield, however, does offer powerful benefits, including:
All eligible municipal retirees must now enroll in Medicare and the legislation extends the moratorium on changes to retiree premium cost sharing agreements from two to three years.
Spending Accounts Allowed
Municipalities can also offer consumer-directed health care options, such as:
You can see the full text of the legislation on the Commonwealth of Massachusetts website.