Once again, the people who provide the most basic services in our communities are going to be forced to take a pay cut. No, they're salary isn't being cut. Instead, they are going to have a deductible added to their Health Insurance Plan. If not a deductible, than a higher premium to be deducted from their paycheck. These are the options being discussed by the GIC (Group Insurance Commission) to compensate for being $50 million short based upon the actual claims processed this year.
Sharing the costs of increased premiums or adding a deductible to the employee's portion of the costs is not out of the norm for most companies these days. In fact, my own company entertained that idea just two weeks ago as we discussed plan changes for next year. The problem I have with this proposal is that it is going to be effective in February...mid-year!
One option that is being discussed by the GIC is to add a $750 deductible for single members, and $2,250 for family plans. Given the timing, it could basically eliminate municipal employees coverage for the second half of the fiscal year.
How could this happen? The GIC increased premiums by 3% for the current fiscal year...only 3%!!! While everyone enjoyed the good news (myself included), it appears that more questions should have been asked about the low increase. Or, did the state assume more communities would choose to enter the GIC plan...thus underestimating the premium revenue that would be generated. Wouldn't be the first bad estimate by those on Beacon Hill this year (see tax revenue).
Either way, once again it is the municipalities that will absorb the burden of bad estimates and planning by those on Beacon Hill.
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