Dear MSP members,

I am forwarding a memo from Paul Toner about bad news on the health insurance front (see below).  Due to loss of revenues, health insurance benefits will be cut beginning in February 2010 with increases in co-pays and the addition of upfront deductibles.  The only good news on this is that premiums will be reduced slightly because of these changes.

Though the MSP negotiates a contract around salary, working conditions and dental benefits, we do not have the authority to directly negotiate for our health care benefits.  Health care is controlled for all state employees by the GIC (Group Insurance Commission), a state agency.  When money is tight, benefits can be cut, and those cuts do not have to be negotiated.  They can only be influenced by political pressure.

Paul Toner is the Vice President of the Massachusetts Teachers Association and sits on the GIC board.  Attached are two documents:  1) the proposal to make the policy design changes which went to GIC commissioners from Executive Director, Dolores Mitchell and 2) Paul Toner’s response to that proposal.

Randall Phillis

MSP President

----- Original Message -----

From: Toner, Paul

To: Trainor, Ann Marie

Sent: Friday, November 20, 2009 2:39 PM

Subject: Update on Decisions Made at 11/20/09 GIC Meeting

Mid-year plan design changes.  I am disappointed to report that at the GIC meeting this morning, the Commission voted to make the plan-design changes I advised you about yesterday.  For your convenience, another copy is attached.  These deductibles and co-pays will be effective on February 1, 2010, and each enrollee will be notified about the changes in advance.  These changes will not apply to enrollees participating in the Medicare supplemental plans, but will apply to all other GIC plans.  Because of these changes, premiums will be reduced and enrollees will see a slight decrease in their share of the premium costs.  The Commonwealth’s Health Savings Account enrollment period is extended until 12/4 and state employees can increase their contributions in light of these changes. 

The “savings” generated by this cost-shift was reported to be about 18.8 million dollars; short of the projected deficit of 35 million dollars. 

Paul Toner