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Our members are the local governments of Massachusetts and their elected and appointed leadership.
The first review panel in the state under the recent municipal health insurance reform law was held on April 4 to finalize an agreement between the town of Falmouth and its Public Employee Committee.
Under the law, a review panel is formed when employees and management cannot reach an agreement on health insurance changes within the allotted 30-day time period. The panel consists of a municipal representative, a PEC representative, and a neutral third member serving as chair.
The neutral member is selected by the PEC and the municipality from a list provided by the Executive Office for Administration and Finance. If the two parties cannot agree on a third member, the person is selected by Administration and Finance.
In Falmouth, the parties had reached agreement within 30 days on the parameters of health plan design changes; the issue in dispute was how to allocate 25 percent of the first year’s savings, which in this case amounts to $473,000. The town originally sought to use the money for insurance premium holidays, but agreed to the PEC’s request that the money be used for a Health Reimbursement Account, under the condition that the account would dissolve when the money runs out regardless of the length of time.
The review panel chair also determined that the administrative cost of the HRA must be deducted from the $473,000 in savings.
Falmouth Assistant Town Manager Heather Harper, the management representative on the review panel, was pleased with the outcome.
“The Health Insurance Review Panel was effective in Falmouth’s case,” she said. “Both the town and our Public Employee Committee testified that we had come very close to final agreement during the PEC review period. Nonetheless, the neutral chairman was perceptive and worked to bring the parties to agreement, balancing the interest of the town and the PEC.
“If all goes as anticipated,” she continued, “the town will be able to communicate the benefits of the mitigation plan with employees during our Health Fair and open enrollment period this May, in advance of the implementation of the new plan design.”
To date, 102 communities and regional school districts have taken action since the passage last summer of the municipal health insurance reform law, and 56 of them have finished negotiations. A number of communities are in midst of their 30-day negotiation period or plan on voting to adopt and start negotiations this spring.