Revised on May 10, 2012
What contribution ratios apply to RMTs and EGRs after a municipality joins the GIC?
Premium contribution ratios for those who transfer from the GIC’s RMT or EGR coverage to its Municipal Employer health coverage under Section 19 may be no more than the lower of 25% of premium or the health premium contribution ratios for all with the same type of plan. This limitation is an exception to the general rule under Section 19 that contribution ratios may differ only by type of plan (i.e., HMO, PPO, or Indemnity; Medicare or non-Medicare).
Under Section 23, the maximum health premium contribution for those who transfer from the GIC’s EGR and RMT coverage to the GIC’s Municipal Employer health coverage can be no more than 25% (and may be less than 25%). As with all retirees, survivors, and their dependents under Section 23, RMTs’ and EGRs’ contribution ratios generally may not be increased prior to July 1, 2014, with limited exceptions.
How does CIC impact contribution ratios for former RMTs and EGRs?
At the state level, CIC is an enrollee-pay-all benefit. Therefore, RMTs who chose the UniCare State Indemnity Plan/Basic with CIC pay 10, 15, or 20% (depending on date of retirement) of the Basic premium, plus 100% of the CIC premium. Municipalities transferring to the GIC may maintain that structure for former RMTs. In joining the GIC, many communities have opted to roll together CIC coverage with the underlying UniCare plans, and pay a fixed share of the combined plan. This structure is also acceptable to the GIC, for all subscribers, or for all subscribers except RMTs, provided that RMTs are not required to pay more than 25% of premiums.
If we decide to leave GIC health coverage after joining it, may our Retired Municipal Teachers and Elderly Governmental Retirees return to the GIC’s RMT and EGR coverage?
No. According to the law, they cannot transfer back to the RMT or EGR program when their Municipal Employer withdraws from GIC coverage.
This information provided by the Group Insurance Commission.