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Massachusetts AFL-CIO

Massachusetts AFL-CIO. Municipal Plan Procurement Andrew Powell. 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:

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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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