[Retiree insurance]
February 11, 2009
On November 7, 2008, Governor Patick signed into law Section 18A of MGL Ch.32. This augmented Section 18 which "requires eligible retirees who are entitled to Medicare Part A to enroll in Medicare". The main difference between S.18 and S.18A is that S.18 requires all retirees (even past retirees) to take enroll in Medicare is eligible, while S.18A only requires future retirees to enroll in Medicare.
Most importantly, I have attached two recent public reports (from the Worcester city website) on the matter. A significant number of communities in the State (including Bridgewater 'a long time ago') have adopted Section 18. By my count on the 2nd report (more communities reviewed), 163 had acepted the full Section 18. When you read the report you will notice the many communities they did not poll and/or did not respond. Half of the cities/towns in the Commonwealth have accepted Section 18, and a more complete survey (if communities might respond) would increase that percentage (I recognize the value of my own research and possible survey of communities to determine their decision on this issue, however these two lengthy survey documents I "accept" to fairly represent the status. It is possible for a few communities on the report to have been mis-coded, however the totality of the report still points to nearly half the State accepting MGL Ch.32S18.)
[Click here for first report] [Click here for second report]
For more references/background on the matter:
MGL Section 18 == http://www.mass.gov/legis/laws/mgl/32b-18.htm
in a regional school district by vote of the regional district school committee
“Shall the town require that all retirees, their spouses and dependents who are enrolled in Medicare Part A at no cost to a retiree, their spouse or dependents, or eligible for coverage thereunder at no cost to a retiree, their spouse or dependents, be required to enroll in a medicare health benefits supplement plan offered by the town?”.
MGL Section 18A == http://www.mass.gov/legis/laws/seslaw08/sl080374.htm
Malloy, Lynch, Bienvenue, LLP == http://www.mlbcpa.net/municipal/?p=11#more-11
Two communities are currently moving forward with plans to enact Section 18A
* Southborough Town Meeting to decide on 18A April 13, 2009
http://southboroughadvisory.nexo.com/resources/26/Draft%20of%20Warrant%20as%20of%2012-8-08.doc
* Andover Town Meeting to decide on 18A on April 29, 2009
http://andoverma.gov/news/images/Preliminary09Warrant.pdf
School Districts (like Bridgewater-Raynham) and other cities/towns should review this topic. The law signed by the Governor recently provides another option to communities analyzing retiree healthcare costs and benefit levels. One issue that comes up frequently in these discussions is the matter of the 'Medicare Penalty' for moving employees into Medicare after the date they could have enrolled.
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