NEWBURYPORT — As a state deadline for joining the Group Insurance Commission quickly approaches, the City Council is allowing the mayor to broach another choice for health care with the city's unions.
While the seven unions decided against joining the GIC last year, the option is again on the table. Mayor John Moak has been meeting regularly with the Public Employee Committee, a group representing the unions.
There is an individual from each of the city's unions on the committee, as well as a representative of the retired employees.
Under state requirements, the city must vote to join the GIC by Oct. 1 in order to be enrolled for fiscal year 2010, which starts July 1, 2009.
The state first allowed cities and towns a chance to enter the GIC last year. Under the program, which offers eight plans of insurance to state employees, the city could have saved an estimated $500,000 in health care costs this fiscal year.
City unions rejected the move last year, having too many questions about the state's health plan as they tried to filter through information on the plan's options on short notice.
Moak said the city also had a presentation by Blue Cross/Blue Shield about its tiered program that is being offered through the Mass. Interlocal Insurance Association, a service of the Mass. Municipal Association. Calculations by city officials show it will generate similar savings to the GIC — about a half-million dollars — if not more, the mayor said.
"We found that BC/BS tiered program would save at least another $100,000 over the GIC," Moak said.
The council agreed Monday to allow Moak and the unions to study the alternative to the GIC.
The unions will take a vote to join the GIC on Sept. 29. If they vote against it, a second vote to join the BC/BS program will happen the following week.
"It's all hinging around the end of this month," Moak said.
If the unions vote against joining both, the mayor will start to begin bargaining with each on health care costs.
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