Politics & Government

Framingham's New Health Insurance Provider Approves Lowest Increase in a Decade

Town of Framingham's new health care plan for employees will save taxpayers more than $17 million.

Last week, Massachusetts' Group Insurance Commission voted for an overall 1 percent increase for all employee and Medicare plans for fiscal year Fiscal Year 2015 and will be offering all 11 employee and 6 Medicare plans in 2015.

Massachusetts Group Insurance Commission carriers will include: Fallon Health, Harvard Pilgrim Health Care, Health New England, Neighborhood Health Plan, Tufts Health Plan and Unicare.

By managing health care spending, the GIC is helping keep costs down for taxpayers, while providing high quality care for its members. It is anticipated that the new rates will be provided to municipalities no later than the end of the week. 

“This is very good news and provides further evidence that the board made the right decision to join the State health care system. This very slight increase of 1 percent (smallest increase in 10 years) in premiums helps both our employees as well as the town," said Framingham Selectmen Chair Dennis Giombetti. "Over the last decade increases in health care premiums in the GIC program have averaged less than the Town's managed health care plans. This is precisely the win, win scenario the board was looking 
to achieve. As we go through the transition over the next few months from the town's plan to the GIC plan this announcement should be comforting news to our employees and retirees as well as our taxpayers.” 

Framingham Selectmen announced an agreement with the Public Employee Committee (PEC) that results in the transfer of the Town’s health insurance coverage to the State’s Group Insurance Commission (GIC) on 7/1/14.

This decision will result in an estimated $17.7 million savings over the next 3 years to the town.

The transfer of health insurance subscribers is an option available to all municipalities in the Commonwealth to help cities and towns reduce the costs of providing health insurance to their employees. These costs have placed an ever burgeoning strain on municipal budgets throughout the state, with Framingham being no exception. The option to transfer subscribers to the GIC was made possible through legislative reforms which were passed by the State Legislature in recent years.

“I hope this news reassures our employees and retirees as to the soundness of the decision to move to the GIC. They offer a great selection of plans and we look forward to the next step of helping employees/retirees choose from among them," said Framingham Town Manager Bob Halpin.

According to Mercer’s National Survey of Employer-Sponsored Health Plans, GIC rate increases are lower than national employer trends, which are predicted to increase 2.1 percent in 2014 and increase by another 5.2 percent in 2015.  

While other employers are controlling costs through enrollment restrictions and benefit cuts, the GIC has taken a different approach through an innovative program called Centered Care which seeks to change how health care is delivered and paid for.  

Find out what's happening in Framinghamwith free, real-time updates from Patch.

The GIC’s Centered Care program puts Primary Care Providers in a central role in patients’ health care coordination and engages providers and health plans in managing health care dollars more efficiently.

“I thank the GIC for their commitment to finding innovative solutions to lower the cost of health care, saving money for both our families and state government,” said Governor Deval Patrick in a press release. “I am proud of the progress we are making in Massachusetts to create a health care system that is accessible and affordable for all of residents.”

Find out what's happening in Framinghamwith free, real-time updates from Patch.

“The GIC is helping to drive change in the Massachusetts health care delivery system through better care coordination which translates into cost savings for the Commonwealth and higher quality health care for its members,” said Glen Shor, Secretary of the Executive Office of Administration and Finance in a press release. 

In 2013, the GIC’s health plans all signed five year contracts that included a spending cap schedule. By managing health care spending, the GIC is helping to hold down costs for Commonwealth taxpayers and its members.

Annual Enrollment for all Town of Framingham Employees and Retirees will begin on Wednesday, April 9 and will end on Wednesday, May 7.

Town of Framingham Employees and Retirees are encouraged to begin to gather all required documents and research the health plans offered through the GIC.

Informational sessions are being offered through the Town of Framingham's Human Resources Department to assist employees and retirees through this transition, and information is available on the Framinghamma.gov website.

All required documentation, and plan selection forms must be completed and turned in the Human Resources Department no later than, Wednesday, May 7.


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