By James Reddick

The
Board of Aldermen Committee on Finance is considering adopting a state
law that would require many of the city's eligible former employees to
switch to federally funded Medicare supplement plans.

The
state law, known as Section 18, would shift much of the health care
funding for the city's retired employees to the federal government, a
measure that would help the city's tight budget.

According to a report issued by the city, an estimated $1,373,557 would be shaved annually.

The
city says that of the 443 plans that would be affected, 334 members
would pay less per month for their premiums than they are currently,
should they adopt plans like Harvard First Seniority or Tufts Medicare
Preferred, as opposed to the more comprehensive, and expensive, Medex
3.

Currently, there are 145 people who are already paying for
Medicare Parts A and B alongside the city plan, which officials say is
more costly to both them and the city.

The potential change
comes on the heels of an increase earlier this year in the percentage
retirees are forced to pay for their premiums-from 10 percent to 25
percent. The city is hoping Section 18 will be to their financial
benefit. If approved, the changes would go into effect in July 2010,
though enrollment in Medicare Part B could start as soon as January.

The Finance Committee will continue the discussion at its Dec. 9 meeting.

 

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