Committee Report - Finance - 7-27-11 — File 191792

July 27, 2011 Finance Committee Page 1 of 2 Printed 8/11/2011 REPORT OF THE FINANCE COMMITTEE Attendee Name Title Status Arrived Maryann M. Heuston Chair Present William A. White Jr. Vice Chair Present John M Connolly Alderman At Large Present Rebekah Gewirtz Ward Six Alderman Present Thomas F. Taylor Ward Three Alderman Absent William M. Roche Ward One Alderman Present Dennis M. Sullivan Alderman At Large Present Walter F. Pero Ward Four Alderman Present Robert C. Trane Ward Seven Alderman Present Bruce M. Desmond Alderman At Large Present Sean T. O’Donovan Ward Five Alderman Present Joseph Curtatone Mayor Present Omar Boukili Administrative Assistant Present Matt Buckley Asst. City Solicitor Present Sarah Kloos Director of Personnel Present Pat Haraden Consultant, Longfellow Benefits Present 191787 - Requesting to amend the city’s health insurance benefits by transferring to the Group Insurance Commission (GIC).: Mayor Curtatone discussed issues pertaining to the switch to the GIC health plans, including the city’s claims history, and stressed the need to control escalating health care costs in order to remain on a sound financial management path. Mr. Haraden again reviewed aspects of the GIC plans, including the up-front deductible schedule and when they would be allowed to be increased. According to Mr. Haraden, the savings to employees and retirees would be greater under the GIC as opposed to a plan design option. Ms. Kloos told the members that the Personnel Department will be handling the dissemination of information and that staff would be available to respond to any questions. Additionally, information has been posted to the city’s website. In order for the city to commence under the GIC on January 1, 2012, the Board of Aldermen must act on this measure by September 1, 2011 and Alderman Desmond requested to know the ramifications to the city if this issue is not acted on by that date. PUBLIC HEARING Several individuals spoke in opposition to the issue, citing the following concerns:

Committee Meeting July 27, 2011 Finance Committee Page 2 of 2 Printed 8/11/2011 • Would prefer to try a plan design, • The GIC plan would be unaffordable to some individuals, • Higher deductibles and co-payment amounts • Problems expected to be encountered by retirees • Better to negotiate changes to existing plans • Blue Cross/Blue Shield not among the GIC plans offered, • The lack of savings to subscribers, • Burdens of those with chronic illnesses, • Giving up control of one’s own health care, • The lack of information and negotiations, • GIC’s tier system There were no speakers in favor of the measure. The public hearing was closed. Alderman White requested that union representatives provide information regarding the path taken by City of Boston regarding joining the GIC and how plan design might be an alternative. The committee requested the Administration to provide the following information: • A grid showing the costs and savings to retirees (Alderman White), • Data showing the difference in out of pocket expenses between the current plan and the GIC plan, for both current employees and retirees (Alderman Roche), • Listings of non-Medicare retirees and Medicare retirees, a listing of those individuals covered by Blue Cross/Blue Shield and information about other communities’ experiences (Alderman Connolly), • The mechanism for the city to get out of the GIC (Chairman Heuston). Chairman Heuston asked that the Administration respond to the concerns expressed and submit those responses to the Finance Committee. RESULT: KEPT IN COMMITTEE