TR-2011-40 MGL CH 32B SECTION 18A 71
TR-2011-40
A RESOLUTION ADOPTING MASSACHUSETTS GENERAL LAW CHAPTER 32B,SECTION 18A
(SPONSORED BY: MAYOR RICHARD A. COHEN)
WHEREAS, Massachusetts General Law 32B, Section 18A (M.G.L. c. 32B, §18A) provides that municipal
retirees, their spouses and dependents insured or eligible to be insured under this chapter, if enrolled in
Medicare Part A at no cost to the retiree, spouse or dependents or eligible for coverage thereunder at
no cost to the retiree, spouse or dependents, shall be required to transfer to a Medicare extension plan
offered by the governmental unit; and
WHEREAS, Massachusetts General Law 32B, Section 18A is subject to local acceptance; and
WHEREAS, Accepting Massachusetts General Law 32B, Section 18A is an important tool in the
management of Agawam's insurance program; and
WHEREAS, Accepting Massachusetts General Law 32B, Section 18A would shift the costs to the Federal
Medicare Program for future retirees and has no effect on current retirees; and C)
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WHEREAS, Massachusetts General Law 32B, Section 18A is a method of countering the long trrm
costs of health insurance for municipalities; and
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WHEREAS, The Town of Agawam has a fiduciary duty to the taxpayers to control spending for�heaAt
insurance; and
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NOW THEREFORE, BE IT RESOLVED BY THE AGAWAM TOWN COUNCIL that Massachusetts General Law
Chapter 328, Section 18A is hereby accepted.
DATED THIS_q�DAY OF 1A, 2011.
PER ORDER OF THE AGAWAM CITY COUNCIL
lwmd A vvk
Don 6W Z'rbLe�(
M. R eault, President
-F
A PR VIED,k)TO FORM AND LEGALITY
V c t
in 4en oscia, City Solicitor
MAYOPAL ACTION
Received this (9 day of _Tudq ' 2011 from Council Clerk.
Signed by Council President this day of 2011.
APPROVAL OF LEGISLATION
By the powers vested in me pursuant to Article 3, Section 3-6 of the AgawMi—harter, as
amended ereby approve the passage of the above legislation on this day of
7 ) 2011.
V
Richard A. Cohen, Mayor
DISAPPROVAL OF LEGISLATION
By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as
amended, I hereby veto the passage of the above legislation on this day of
, 2011 for the following reason(s):
Richard A. Cohen, Mayor
RETURN OF LEGISLATION TO COUNCIL CLERK
Returned to Council Clerk this day of ' 2011.
TR-2011JID
A RESOLUTION ADOPTING MASSACHUSETTS GENERAL LAW CHAPTER 32B,SECTION 18A
(SPONSORED BY: MAYOR RICHARD A. COHEN)
WHEREAS, Massachusetts General Law 328, Section 18A (M.G.L. c. 32B, §18A) provides that municipal
retirees, their spouses and dependents insured or eligible to be insured under this chapter, if enrolled in
Medicare Part A at no cost to the retiree, spouse or dependents or eligible for coverage thereunder at
no cost to the retiree, spouse or dependents, shall be required to transfer to a Medicare extension plan
offered by the governmental unit; and
WHEREAS, Massachusetts General Law 32B, Section 18A is subject to local acceptance;and
WHEREAS, Accepting Massachusetts General Law 32B, Section 18A is an important tool in the
management of Agawam's insurance program; and
WHEREAS, Accepting Massachusetts General Law 32B, Section 18A would shift the costs to the Federal
Medicare Program for future retirees and has no effect on current retirees; and
WHEREAS, Massachusetts General Law 32B, Section 18A is a method of countering the long term rising
costs of health insurance for municipalities; and
WHEREAS, The Town of Agawam has a fiduciary duty to the taxpayers to control spending for health
insurance; and
NOW THEREFORE, BE IT RESOLVED BY THE AGAWAM TOWN COUNCIL that Massachusetts General Law
Chapter 32B, Section 18A is hereby accepted.
DATED THIS DAY OF 2011.
PER ORDER OF THE AGAWAM CITY COUNCIL
Donald M. F eault, President
4
A PR VED k)TO FORM AND LEGALITY
V c t
in ken oscia,City Solicitor
nl�
32B § 18 CONTRIBUTORY INSURANCE CONTRIBUTORY INSURANCE 32B § 19 S
enrolled or eligible to be enrolled in Medi- continue the existing family coverage for the no cost to a retiree,their spouse or dependents,or eligible for coverage thereunder
care part A at no cost shall not be required dependent in a plan other than a Medicare at no cost to a retiree,his spouse or dependents,be.required to enroll in a Medicare
to transfer to a Medicare extension plan if a extension plan offered by the governmental health benefits supplement plan offered by the town?".-
transfer requires the retiree or spouse to unit"..
Added by SLM,c-374,-§'1,eff.Nov.7,16W.
Research References c
Historical and Statutory Notes
Treatioes and Practice-Aids 18 Mass. Prac. Series § 10.25, Group In-
18 Mass. Prac. Series § 1.9, Revocation Surance. 2008 Legislation
and Rescission of Statoes. .&M,c,374,§'1,an emergency act,was
approved Nov.7,20.08,effective Nov.7,2008.
§ 18A. Medicare extensioh plans; mandatory trainsfer of retirees
Research-References
In a governmental unit that has aevepted'section 10 and that accepts this section, Tre�flses andiPractice Aids
all retirees, their spouses and dependents iniured or eligible to be insured under
this chapter, if enroUd in Medicare Part A it no cost to the retiree, spouse or 18 Man. Piac. Series § 13.12, Health In-
dependents or eligible for coverage thereunder at no cost to the retiree, spouse or surance Optiong for Municipal Retirees.
dependents, shall be reqt&ed to transfer to a Medicare extension.plan offered by
the governmental unit under section 11C or section 16, provided, th4t.the benefits § 19. L Health carriers; contracts; public employee committees; agree-
under the plan and Medicare Part A and PartB together'shall.be of companible merits'with public'authoiities;Jransfer of subscribers to com-
actuarial value to those under the retiree's existing coVerage; provided, however, mission
that a retiree or spouse who has a dependent who is not,enrolled.or eligible to be (a) Notwithstanding any-other provision of chapter,. the .appropriate public
enrolled in Medicare Part A at no cost shall not be required to transfer to a authority of a political subdivision which has undertaken to provide health insurance
Medicare extension plan if a transfer.requires the retiree or spouse to continue the
existing famfly''coverage for the dependent in a plan other than a Medicare coverage to its subscribers by acceptance of any-other section of this chapter may
extension plan offered.by the governmental unit. Each retiree shall'provide'the instead elect to provide health insurance coverage to all its subscribers pursuant to
governmental unit, in such form as the govemmental unit shall prescribe, such this section by entering into contracts with health insurance carriers or by transfer-
information as is necessary to transfer to a Medicare'extension plan. If a retiree ring its subscribers to the commiiision,under subsection (e). For the purposes of
does not submit the information required, he shall no longer be eligible for his this section, the term "subscribers" shall mean employees, retirees, surviving
existing.health coverage. The governmental unit may from time to time request spouses and dependents of-the political subdivision and may include employees,
from a retiree, a retiree's spouse or a retiree's dependent, proof, certified by the retirees, surviving spouses and dependents of a district who previously received
federal government, of eligibility or ineligibility for Medicare Part A and Part B health insurance-benefits through the political subdivision accepting this section.
coverage. The governmental unit shall pay any Medicare Part B premium penalty This section shall take effect in a political subdivision upon its acceptance in the
assessed by the federal government on the retiree, spouse o�r dependent as a result following manner: in a county, except Worcester county, by a vote of the county
of enrollment in Medicare Part B at the time of transfer. .For the purpose of this commissioners; in a city having Plan D or a Plan E charter,by majority vote of the
paragraph� "retiree" shall mean a person who retires after the accieptance of this city council and approval by the manager; in any other city,by majority vote of the
section by a governmental unit. city council and approval by the.mayor; in a town, by vote of.the board of
selectmen; in a regional school district, by vote of the regional district school
A retiree who retires prior to the.acceptance 'of this section by a goverqmental committee; and in all other districts, by vote of the re tered voters of the district'
unit, his spouse a' gis
nd dependent shall continue to be eligible for benefits provided at a district meeting.
under this chapter, but'may opt to transfer to a Medicare extension plan offered by
the governmental unit undei section 11C or section 16, thereby becoming ineligible Acceptance of this section shall not take effect until a written agreement has been
to participate in any other group health insurance benefits svailabi� to active reached between the appropriate public authority and'the public employee commit-
employees under this chapter. tee, but the written agreement may condition acceptance of.this section upon the
transferring of subscribers into the commissiorf under subsection(e).
This section shall take effect in a county, except.Wo�Tester county, city, town or -this section
district upon its acceptance in,the following manner. In a county, by vote,of the A written agreement to transfer subscribers to the commission under
county commissioners; in a city,having a Plan D or Plan E charter, by a majority shall be the sole means by which the subscribers of a political subdivision may be
vote of its city council; in any other city, by vote-of i city council and approval by transferred to commission coverage.
ts
the mayor; in a district, except as hereinaftr provided, by vote of the registered Notwithstanding subsection (c) of section 4B of.ch�pter 4,-the acceptance of this-
voters of the district at a district meeting; in a regional school district, by vote of section may be revoked.in the same manner it was accepted in accordance with.all
the.regional district school committee;and in a town,either by vote of the town at a 6ther subsections of section 4B of said chapter 4,.subject to the requirements of any
town meeting or, by a majority of affirmative votes cast'in answer to the following written agreementa,as provided in this section and chapter 150E. The revocation-of
question which shall be printed upon the offieW ballot to be used at an election of- U& section shall not-take effect until a written agreement.providing for revocation
said-town-"Shall the town require that all retirees,who,retire after the acceptance is reached between the appropriate public authority and the employee cominittee
of-this section,their spouses-and dependents wfio are enrolled in Medicare Part A-at established herein. Nothing in this section shall,preclude an appropriate public
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