Section 19 Agreements for Municipal Health Insurance

Components of the agreement and what may be bargained.

Revised on 7/19/2017

(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, POS, 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. There is an initial 3 year term when joining the GIC and withdrawal may only happen at whole-year intervals. The agreement must state a withdrawal interval, which must be at least 2 years. For more info. on withdrawing please see FAQs.  

You may not 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 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, choice of benefits, and health carriers.

You may 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, 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.


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