1. Massachusetts AFL-CIO Municipal Plan Procurement Andrew Powell 1

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 2

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 3