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<br />Memo to: Carl Valente <br />From: Michael Kennealy & Deborah Brown <br />Date: November 5, 2008 <br />Re: GIC <br />Attachments: (1) Lexington health benefits expense growth projections <br /> (2) Brookline memo <br /> <br />Lexington’s employee health benefit expenses will consume $22.1 MM in FY2009, <br />16.5% of FY2009 general fund expenses of $134.5 MM. Like many municipalities in <br />Massachusetts, Lexington has endured double-digit annual growth rates for health <br />benefits for a number of years. (The state average was 13% from FY2001-FY2006) In <br />an effort to get a handle on these expenses, we’ve been exploring one relatively new <br />option for municipalities – joining the state’s Group Insurance Commission (GIC). <br /> <br />We conducted interviews and gathered information from a number of sources, <br />including: <br /> <br />Group Insurance Commission (GIC): <br /> Lisa Boodman, General Counsel, and Cynthia <br />McGrath, Communications Director <br />Metropolitan Area Planning Council: <br />Joel Barrera, Project Director <br />From the MAPC website: As communities consider whether joining the GIC <br />makes sense for them, the Metropolitan Area Planning Council (MAPC) is <br />available to provide assistance in organizing and facilitating conversations with <br />union members and other critical participants, identifying benefits and barriers to <br />making the switch, providing additional staff support, and more. <br />Massachusetts Teachers Association (MTA <br />): Paul Toner, Vice President <br />The MTA has hired Boston Benefit Partners (see below) to provide consulting <br />services to local teachers’ unions considering joining the GIC. <br />Boston Benefit Partners, LLC: <br /> John Brouder, Partner <br /> (See MTA above) <br />Town of Brookline: <br /> Richard Kelliher, Town Administrator <br />Brookline has accepted coalition bargaining in anticipation of negotiating an <br />agreement to join the GIC. The town has done extensive analysis demonstrating <br />significant potential savings but has not yet reached agreement with its unions. <br />West Suburban Health Group <br />: Marc Waldman, Treasurer, Town of Wellesley <br />The West Suburban Health Group provides a group purchasing option for a <br />number of metrowest communities, including Wellesley, Needham, and Natick. <br />[need complete list] <br />Massachusetts Municipal Association (MMA <br />): Geoffrey Beckwith, Exec. Director <br />The MMA has its own health benefits arm, the Massachusetts Interlocal Insurance <br />Agency (MIIA) Health Benefits Trust. The Trust offers another insurance pool <br />option to municipalities, offering exclusively Blue Cross insurance products, <br />making it a direct competitor to the GIC. <br /> <br />Page 1 of 3 <br /> <br />