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Massachusetts AFL-CIO

Massachusetts municipalities currently do not require competitive procurement for health plans, despite health insurance being their largest annual expenditure. Implementing a competitive bidding process every five years can ensure taxpayers receive the best prices, reduce administrative costs, and enhance oversight of healthcare spending. This proposal allows stakeholders to review healthcare cost drivers, aligns municipal plans with state standards, and involves the Public Employee Committee in bid evaluations, thereby promoting transparency and accountability in municipal health insurance management.

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Massachusetts AFL-CIO

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  1. Massachusetts AFL-CIO Municipal Plan Procurement Andrew Powell

  2. Currently municipal health plans do not require any competitive procurement • In most cases, health insurance is the largest annual purchase by municipalities • Competitive bidding would provide opportunities to: • Ensure taxpayers and subscribers that carriers are providing the “best” price for plans available • Administrative costs • Stop-Loss (re-insurance) • Requires stakeholders to periodically review their healthcare cost drivers • Allows for municipalities to understand current plan trends and ways of controlling costs • Aligns municipal plans with the Commonwealth • GIC bids their health plans every five years

  3. Procurement Proposal • Require all municipal health plans to put their plans out to bid every five years • Health Plans • Re-Insurance • Formal review of bids take place with the Public Employee Committee (PEC) • Any changes as a result of the procurement (IE…carrier change or plan changes) are made under Chapter 32B Section 19 or Sections 21-23

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