Operations for Municipal Health Insurance through the GIC

Municipal administrative tasks, new hire and termination effective dates.

Revised on 7/19/2017

Municipal Employers are not required to re-enroll for GIC coverage each year

Municipal Employers who join GIC coverage must remain in GIC coverage for a minimum of three years and may withdraw from GIC coverage at whole year intervals as defined in the agreement to join the GIC between the PEC + the Municipality.  These intervals may not be less than 2 yrs. For the procedure to withdraw, see the Withdrawal section.

Administrative tasks that the Municipal Employer must continue to provide once its subscribers transfer to GIC coverage

The Municipal Employer must collect and provide to the GIC all information necessary to maintain subscribers and covered dependents’ coverage. The Municipal Employer will perform administrative functions and process information as necessary to maintain the coverage, including family and personnel status changes, enrollment activities, reporting enrollee changes monthly to the GIC, and otherwise communicating with subscribers and the GIC as necessary. The GIC will provide detailed information to Municipal Employers about implementation when they submit their notice of intent to the GIC.

Effective date of GIC coverage for new hires

Eligible new hires who make timely application to join GIC coverage will be insured on the first day of the month following the earlier of 60 calendar days or two calendar months, whichever is less. The reason for the waiting period has to do with the complexities of collecting and distributing the necessary documents across a number of plans, agencies and other vendors and enable sufficient payroll and pension deductions for the enrollees’ share of premium in advance of coverage.

Municipal Employers are required to deduct the employee’s share of the health insurance premium one month in advance of the effective date of coverage or the monthly premium due date. This means that for coverage effective July 1, the employee portion of the premium must be deducted in June the preceding June.

The waiting period for new hires is never waived

However, employees without other insurance may buy back, at full cost premium, coverage beginning on the first date of employment if unplanned and urgent medical expenses occur during the waiting period, and other requirements are met.  For more information, see 805 CMR § 9.01 (4) .

Termination date of GIC coverage for employees who leave municipal service

If a municipal employee terminates employment with the municipality, coverage will end the last day of the month following the month the employee leaves municipal service.


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