Revised on May 10, 2012

(Unionized Municipal Employers)

What must be in a Section 19 bargained agreement to join GIC health coverage?

Three issues: (1) whether to join GIC health coverage; (2) the health premium contribution ratios for the Municipal Employer’s subscribers, which can differ only by type of plan (PPO, HMO or Indemnity) and not by type of subscriber (active, retired or survivor); and (3) the terms for revocation of Section 19 if the Municipal Employer or its subscribers wish to withdraw after three or six years of enrollment in GIC health coverage.

May we bargain benefits and carriers?

No. For Municipal Employers joining GIC health coverage, the law suspends all collective bargaining related to municipal subscribers’ health insurance except the level of their GIC health premium contribution ratios. The GIC has exclusive authority to determine all other matters relating to municipal subscribers’ GIC health insurance rights, responsibilities, cost and payment obligations, including the manner and method of payment, eligibility requirements and choice of benefits and health carriers.

May we negotiate to give subscribers incentives to join GIC health coverage?

Yes.  When first enacted, municipal health reform limited what incentives Municipal Employers could offer to build support among employees.  However, recent statutory changes have largely eliminated these constraints.  Municipal Employers are urged to contact the GIC with questions about possible incentives before they execute PEC agreements.

 


This information provided by the Group Insurance Commission.