Learn More About Contribution Ratios for RMTS and EGRs in Municipal Health Inusrance with the GIC

Premium contribution options for RMTs and EGRs converting to municipal coverage and effect of withdrawal from the GIC.

Revised on 7/27/2017

The contribution ratios that 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 not be more than 25% of premium, however the agreement to join the GIC may provide for payment  of less than 25%. 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 CIC impacts 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 their share 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 you decide to leave GIC health coverage after joining it, your Retired Municipal Teachers and Elderly Governmental Retirees may not return to the GIC’s RMT and EGR coverage

According to the law, they cannot transfer back to the RMT or EGR program when their Municipal Employer withdraws from GIC coverage.


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