Revised on November 10, 2015

What local entities can join GIC coverage?

Any local entity that offers health insurance under Chapter 32B – meaning, most cities, towns, regional school districts, and surviving counties – may transfer eligible enrollees (employees, retirees, survivors, and their dependents) to the GIC.  In this document, the term “Municipal Employer” applies to local entities that offer health insurance under Chapter 32B.

Certain other local entities that do not provide insurance under Chapter 32B, including regional councils of government, regional planning agencies, education collaboratives, and charter schools, can join the GIC through Chapter 32A, but the specifics of the process for joining the GIC and contribution ratios once enrolled are different.  If you have questions about those processes, contact the GIC’s Municipal Coordinator. 

What are the key differences between Section 19 and Section 23?

Both Section 19 and Section 23 provide a means by which Municipal Employers may offer health coverage through the GIC.  There are, however, some key differences:

 Section 19Section 21/23
Decision to transferMust be negotiated with Public Employee Committee (PEC) made up of representatives of local unions and retireesMay be negotiated with PEC or may be ordered by municipal health insurance review panel (for more details on the panel process, see below)
MitigationNone requiredPanel must require 25% of year one saving go to mitigation fund to offset impact of transfer on  those who would be disproportionately affected
Timelines Negotiation / panel timelines apply
Contribution ratiosRatios may vary only by type of plan (e.g. non-Medicare HMO, PPO, POS, Indemnity, Medicare)Contribution ratios fully subject to collective bargaining
DurationThree or six yearsThree years
RevocationMust be negotiated with PECMunicipal Employer may unilaterally withdraw (but PEC Agreement may require other procedures)
Dispute ResolutionCertain disputes over PEC Agreements may be submitted to binding arbitrationArbitration not addressed in statute


This information provided by the Group Insurance Commission.