A&F issues guidance for health insurance reform reports

On May 4, the Executive Office for Administration and Finance posted information on its website about the annual reporting requirement related to last year’s municipal health insurance reform act.

Under regulations (801 CMR 52.00) promulgated to govern the administrative procedures for the municipal health reform act (Ch. 32B, Secs. 21-23), municipalities that did not use the new reform in fiscal 2012 must file a report with A&F by June 30.

A&F posted a list of common questions and answers about the regulations. According to the FAQs, there are three scenarios that would require the filing of a report:

• A community used traditional collective bargaining and an agreement to changes in health benefits was reached

• A community used traditional collective bargaining, but an agreement was not reached

• No action was taken in fiscal 2012

The reports provide an update to A&F about any actions taken related to health insurance benefits and, in some cases, must include a calculation of “maximum possible savings” available if changes had been made using the new reform process.

Communities that adopted the reform and made health insurance changes have already had to communicate with A&F throughout the process and therefore do not have to file this report.

The MMA had objected to the reporting requirement when it was proposed in the regulations last year because no such requirement was included in the municipal health insurance reform law. The provision, however, was included in the final draft of the regulations and is a requirement for most cities and towns.

To date, more than 100 communities and regional school districts have adopted the reform law to make changes to municipal health insurance plans.

• Download sample report provided by A&F (PDF version)
• Download sample report provided by A&F (Word version)