Group Insurance Commission (GIC) Local Option

Legislative Fact Sheet

SUMMARY:

On July 25th, Governor Deval Patrick signed legislation giving municipalities the option of joining the state’s Group Insurance Commission for the purpose of providing health insurance benefits to municipal employees.  Under the new law, both state workers and municipal workers that opt into the GIC would be part of the same pool.

WHAT IS THE GROUP INSURANCE COMMISSION?
The Group Insurance Commission (GIC) provides health insurance and other benefits to state employees and retirees and their dependents and survivors.

WHAT THE NEW LAW DOES:
The new law (Chapter 67 of the acts of 2007) gives cities, towns and school districts in Massachusetts the option of joining the state GIC through coalition bargaining. Under coalition bargaining, health insurance would be negotiated through a Public Employee Committee (PEC) consisting of one representative from every union within a municipality.  The PEC would negotiate with management as one body, and each union would have a weighted vote based upon its percentage of members.  To enter the GIC, a written agreement must be reached by management and the PEC, which must be approved by a 70% vote of the PEC, as well as majority passage by the local governing body (ie: city council, board of selectmen, town meeting, school committee) and acceptance by the mayor or manager if applicable.

WHAT THE NEW LAW DOES NOT DO:
This law does not require cities or towns to join the GIC.

IS THE GIC RIGHT FOR OUR CHAPTER?
The complexity of the new law and the diversity of SEIU 888 chapters with regard to contract language and individualized health insurance needs require that the GIC option be analyzed on a chapter by chapter basis.  Any GIC proposal should be assessed as part of the bargaining process in consultation with the appropriate SEIU 888 staff.