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 [1]), 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, Vice President of the Massachusetts Teachers Association and one of the GIC Commissioners responded to the proposal for mid-year cuts which came from Executive Director, Dolores Mitchell.  That response as well as a description of the policy changes (as proposed by Ms. Mitchell) can be viewed in the attachments below.

Excerpt from the GIC website [2]:

Benefit Changes Effective February 1, 2010:

• Primary Care Physician Office Visit Copay: $5 increase across all tiers
• Specialist Office Visit Copay: $5 increase across all tiers
• Retail Clinic Copay: $5 increase
• Physical Therapy, Chiropractic and Occupational Therapy Copay: $5 increase
• Outpatient Surgery Copay: $10 increase
• Hi-tech imaging Copay: $25 increase
• Emergency Room Copay: $25 increase
• Mental Health/Substance Abuse Outpatient Visit Copay: $5 increase
• New deductible for all plans: $250 individual coverage/$750 family coverage; deductible will not be applied to office visits, mental health/substance abuse benefits and prescription drug benefits. Ancillary tests and procedures performed at an office visit are subject to the deductible.

The GIC certainly regrets having to make these benefit changes and all GIC staff will be paying the same higher copays and deductibles as their fellow employees. All GIC health plans will have the same increases and it is not known at this time whether these changes will carry into FY11.

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

From: Toner, Paul [3]

To: Trainor, Ann Marie [4]

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 [5] enrollment period is extended until 12/4 [6] 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