Section 23 Agreements and Panel Process for Municipal Health Insurance

Components of the agreement and the next steps after the 30-day negotiation period.

Revised on 7/19/2017

(Unionized Municipal Employers)

How to start the process of transferring subscribers via Section 23 for Municipal Employers

A Municipal Employer may commence the Section 21/23 process by notifying each of its collective bargaining units and the Retired State, County & Municipal Employees Association at least 7 days in advance of its intent to vote to implement the process, and by subsequently notifying them of the results of that vote.  For further information on required notifications and processes in this period, see the Administration and Finance regulations posted (See Additional Resources).

What needs to be in a bargained Section 23 Agreement

A Section 23 Agreement must include contribution ratios and the signatures of representatives of the Municipal Employer as well as a majority of the Public Employee Committee.

What happens if negotiations to transfer subscribers under Section 23 are unsuccessful

After a 30 day negotiation period, if no agreement results, a Municipal Employer may submit its proposal to a municipal health insurance review panel made up of a municipal representative, a representative of the Public Employee Committee, and a third impartial member identified with the assistance of Administration and Finance.  If the panel finds that the proposal meets statutory and regulatory guidelines around savings and mitigation, the panel may order the transfer of subscribers to the GIC under Section 23.  


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