GloucesterTimes.com, Gloucester, MA

Local News

July 18, 2007

Teachers' union head endorses health insurance switch

The new teachers' union president has endorsed Councilor Jason Grow's modified proposal to bring retirees into the city's health insurance program and out of the state's, a switch projected to save the city about $150,000 a year.

In a July 7 letter, union president Andrea Pretzler advised her members that "we have secured the best possible solution" to the question of how best to provide health insurance to the 270 retired teachers and their surviving spouses.

"It's a big step, a huge step," Grow said.

On May 1, a crowd of more than 100 current and retired teachers, led by then-union president Mary Rudolph, protested the idea of taking the retirees from the state program, which requires the city to pay 90 percent of premiums.

With a 4-3 vote, the council gave the teachers and retirees their way.

The city pays only 75 percent of the health insurance premiums for 600 municipal workers.

Grow and personnel director Donna Leete calculated the city could save more than $400,000 a year by bringing the retired teachers into the city program.

Mayor John Bell favored the change. In a cover letter to the council that accompanied a copy of Pretzler's report to her union, Bell said he was "pleased" and thanked the union "for encouraging an environment of mutual cooperation."

The council would need to hold a second public hearing and vote for the switch to make it effective.

The decision is not subject to collective bargaining, Pretzler said.

"However," she wrote, "the city has taken the time to include us in discussion in order to be as equitable as it can be to all those concerned. It is my judgment that this is the best resolution to both ensure retirees future health care benefits and enable the city to try to solve their financial problems."

Pretzler was elected to succeed Rudolph as union president after Rudolph led the opposition to the initial proposal written by Grow and Leete.

Pretzler could not be reached for comment.

In her letter, she confirmed the changes in the plan that convinced Councilor Sefatia Romeo to drop her opposition. Romeo is considered the council's expert on health insurance because of her work counseling patients and matching them with coverages for Northeast Health System at Addison Gilbert Hospital.



She met with Bell, Leete and Grow last month after the program was tweaked to guarantee the retirees would not be required to pay more or lose essential benefits in the shift.

Grow denounced the state program for slowly raising the city's contribution to the retired teachers' health insurance. The city started off paying 70 percent of premiums, and over many years, the state raised that amount to 90 percent.

"Retired teaches ... would not be unduly harmed through change in services or cost in health insurance if the city opted to change your coverage," Pretzler wrote.

Pretzler added retired teachers will be grandfathered in at current premium contribution amounts. She also noted that the city would offer hearing aid riders.

Pretzler said benefit enhancement for retired teachers would include dental coverage at a 40 percent premium reduction and improved prescription drug coverage.

She acknowledged that the switch would create an "inconvenience" by requiring members to obtain referrals to preferred doctors.

Grow said the council could discuss the switch order on Aug. 7.

Before the grandfathering and "held harmless" modifications, the initial proposal was said to be capable of saving the city $450,000 a year in premium costs.

"(The retirees) are grandfathered in, so I'm happy," Romeo said.

"We're making sure existing people are taken care of," Grow said.

Text Only | Photo Reprints
Local News

Pictures of the Week
Your news, your way
Comments Tracker
AP Video Network
Vatican in Chaos After Butler Arrested for Leaks Jimmy Carter Endorses Egypt's Election Results Biden Addresses West Point Graduating Class Dozens of Children Killed in New Syria Attack Raw Video: Activists Allege Massacre in Syria NJ Man Charged With Murder in Death of Patz Support, Fun for Kids of Fallen Soldiers at Camp Fugitive Penguin Caught, Returned to Aquarium 50 Years Later, Underground Fire Still Burning Light Show Transforms Sydney Opera House Raw Video: Unruly Passenger Restrained in Miami Raw Video: Robber Uses Drive-thru Window Raw Video: Dragon Arrives at Space Station Calif.'s Coronado Named Nation's Best Beach CEO Salaries Become Sore Issue in Labor Disputes