N.A. Councilors Want More Info on Insurance Plan
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While intrigued by the possibility of saving up to $1.5 million if the unions joined the state's Group Insurance Commission, the five councilors at Monday's Finance Committee meeting said there were a lot of questions to be answered first. Second, they stressed any recommendations had to come from Mayor John Barrett III.
"Realistically, this is not going happen this year," said committee Chairman Michael Bloom. "The time frame is too tight and there's too much to absorb."
The seven unions have petitioned the council to adopt a state law, Section 19, that would allow them to bargain as a unit for entrance into GIC to save on rising premiums. But the mayor has accused them of trying to go around his office and involve the council in negotiations outside its scope.
Bloom said he would recommend to Council President Alan Marden that the council appoint an ad hoc committee to further investigate what joining GIC would entail in terms of financial obligations and services.
GIC offers eight plans and covers nearly 300,000 state workers, teachers and retirees. It was opened to municipalities, regional districts and other public bodies in 2007 to help cut their insurance costs as part of the Municipal Partnership Act. The city currently insurances itself with Blue Cross/Blue Shield.
To be able to join the insurance group for fiscal 2010, the council would have to adopt Section 19 by Oct. 1. The actual process is a bit of a chicken or egg argument. Union leaders say the council has to adopt the law to allow group negotiations; an opinion from the city solicitor says the city can begin negotiations with the "public employees committee" representing all the groups before the law is adopted.
Teachers' union President Christopher Caproni said adopting the law wouldn't lock the city into GIC, "it gives us the right to talk about it."
"What happens next if we adopt it?" Councilor Gailanne Carridi asked the several union representatives in attendance. "We begin negotiations?" responded Caproni.
No, she said. "It needs to go to the mayor's desk. He needs to sign it."
It was a procedural message that several councilors reiterated. It didn't matter what other city councils might have done (Pittsfield adopted Section 19 in May). According to North Adams' charter, negotiations were within the mayor's purview and such recommendations should be coming from him.
"We can be as supportive as you want but it still has to come from the chief executive's office," said Councilor Richard Alcombright. However, he added, "I'm very,very much in favor of looking at these numbers ... but I have to figure it out. It's very complicated and confusing."
Cariddi thought the mayor would be approving of GIC — if it really did save the city money.
Bloom said he talked to both the mayor and Nancy Ziter, the city's business manager, and been told that the insurance options are being reviewed.
Barrett, two weeks ago, cast doubt on the savings from GIC and questioned whether union members realized that they'd have to leave Blue Cross/Blue Shield.
On Monday, Brian Kelly, president of the North Adams Police Association, said his members had voted unanimously for GIC. In fact, he said, some officers were already being covered on their wives' plans through GIC.
"My members are screaming for something to be done," said Caproni. Eileen Gloster, a building representative for Brayton School, said premiums are so high some part-timers are finding they have to pay the city to keep their coverage.
Councilors, including Lisa Blackmer and Marie Harpin, said their own research had uncovered questions about GIC, such as unforeseen charges, "padding" of revenues to temporarily lower premiums and locked in contracts. Both sides agreed that they needed more education.
"The last thing we want is for our members to be unhappy with something we suggested," said Gloster.
Caproni offered to bring in the analyst from Boston Benefits Consultants who had estimated the city's savings to speak to the council. Bloom said he would work with him to make it happen.
"If we lose a year, we lose a year," said Bloom. "But at least we'll know more about it."
The issue is on tonight's City Council agenda.
