People who want to make joining the GIC mandatory have not done their homework. The idea sounds attractive but can only be evaluated one community at a time. No one has made this “do your homework argument” more persuasively than Dolores Mitchell, the GIC’s Executive Director. Why can’t the Legislative Leadership actually listen to people who know what they are talking about on this issue???

That said, I’ll stick to my over-arching message on this stuff - which works no matter where I work. Small to mid-sized communities - ones with less than 500-1000 lives that don’t belong to a purchasing collaborative - should give the GIC a very close look. Managing and overseeing a health benefits plan is a lot of work, and most small towns don’t have the time or the focus to invest in this activity, and even if they do, they all struggle to offer more than one option. The GIC offers numerous options, manages the program hard, and has a wide variety of carrier choices to go along with a wide range of plan designs.

Is it the right choice for every community? Of course not, but it’s worth remembering that most Massachusetts communities fall into the small to mid-sized category, and most have had tremendous trouble managing their health benefit expenses to a level they can afford. John asks “What’s the rush?” I say the opposite. There is real money to be saved here - and the GIC offers a range of options that work for hundreds of thousands of publicly unionized workers and their families. They can work for many cities and towns in MA, too.

I’ve been reading your postings about the GIC and cities and towns, including your hometown of Swampscott. A municipality’s decision to make any significant benefit change in employee health care should take a very thoughtful, considerate approach. Right now, for those communities considering the GIC, no one can guarantee which carriers will be offered, what benefits will be offered and at what cost to the town and employee. Without this basic information an awful lot is left to guesswork. A “Hurry! Buy Now!” sales pitch should always be taken with a grain of salt. With this in mind, I’m sending this letter to every community who is considering their health care options. Thought your readers would be interested too.

By the way, speaking of hometowns………mine (Watertown) has already taken steps to gain the savings seen in the state’s health plans. Watertown seems to have done their homework and knew the carriers, benefits, and costs before changing. And they’re not locked in for three years!

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To the Editor, October 4, 2007

The cost of health care for Massachusetts’ cities and towns has been getting a lot of attention lately (Oct. 2). Because the fiscal pressures on our communities are so substantial, towns are considering new health insurance options such as joining the state-run Group Insurance Commission.

Recent public reports have boldly promised substantial savings for any city or town that joins the Group Insurance Commission. In fact, some reports state that billions of dollars can be saved simply by joining the GIC. These types of claims require closer examination. Just a quick review of the state’s benefit plans can explain a lot.

The benefit plans offered through the GIC are simply not at the same level as those offered today by most municipalities. How health care is accessed by state enrollees and who pays for that care is not the same either. The GIC does a great job for state employees and actually may be a solution for some municipalities. The GIC is to be commended for the new and innovative steps they have taken to address cost and quality issues.

But municipalities should examine all available options to save on health insurance costs. For some communities, joining a larger pool of employees, like the GIC, has its advantages. There are currently more than a dozen very successful Joint Purchasing Arrangements across Massachusetts. The Massachusetts Municipal Association offers a highly successful program called Massachusetts Interlocal Insurance Association. These JPAs also have a proven successful track record of cost and quality initiatives and are worthy of review.

For those communities who want to retain local autonomy and realize savings similar to the GIC, please take a look at Municipal Blue. With input from municipal leaders, Blue Cross Blue Shield of Massachusetts has developed a new package of benefits designed specifically for Massachusetts’ municipalities. Municipal Blue can provide immediate cost savings without relinquishing local control of health care benefits and costs. Coalition bargaining is not required and you have the freedom to select the benefit plans appropriate for your community. Remember, the law is very clear … joining the GIC is at least a three-year commitment. The purchasing of health insurance is a very important decision that will significantly impact communities and tax payers for years. Please review the GIC, JPAs, Municipal Blue and all other options carefully. Your independent consultant or broker can help with professional advice.

For more than sixty years, BCBSMA has been the largest and most trusted insurer of government employees and retirees in Massachusetts. We thank you for that privilege and look forward to continuing our partnership.

John Coughlin
Vice President, Select Markets
Blue Cross Blue Shield of Massachusetts

Are the GIC plans good enough? Of course…it is the state and legislators (and their families) are covered by these health plans. That’s really not the point. The point is, that you’ve got to be a first-rate Pollyanna to think union members are going to jump in head first after only a few weeks of discussion (remember…August really doesn’t count around here).

Finally, does anyone really think the GIC could handle tens of thousands of new enrollees all at once? And, for some cities and towns, it probably doesn’t make sense to join the GIC.

Let’s not jump to conclussions about whether the law is working, or not, based on the first few months.