HomeMy WebLinkAbout7/1/2023 - 6/30/2024 MEMORANDUM OF AGREEMENT
BETWEEN
THE TOWN OF NORTH ANDOVER
AND
THE NORTH ANDOVER PUBLIC EMPLOYEE COMMITTEE
July 1, 2023 to June 30, 2024
WHEREAS, the Town of North Andover provides health insurance benefits to its employees
pursuant to M.G.L. c32B; and
WHEREAS,the Town, by a vote of its Select Board on February 6, 2012, adopted the provisions
of M.G.L. c32B, §§21 through 23, as amended by Chapter 69 of the Acts of 2011, for the purpose
of implementing changes in health insurance benefits it provides to its employees; and
WHEREAS, the Town, through its Town Manager, and the Public Employee Committee (PEC)
entered into a Memorandum of Agreement to transfer the Town's employees to the Group
Insurance Commission (GIC) pursuant to M.G.L. c32B, §23 effective January 1, 2014 through at
a minimum, June 30, 2024; and
WHEREAS,the Town and the PEC entered into this agreement for the sole purpose of transferring
to the GIC and recognize that in the event that the Town and PEC withdraw from the GIC, health
insurance bargaining will return under the jurisdiction of M.G.L. c150E; and
WHEREAS,the PEC unanimously voted to extend the Memorandum of Agreement an additional
one (1)year period from July 1, 2023 through June 30, 2024;
NOW THEREFORE, the Town and the PEC agree as follows:
1. The Town of North Andover and the North Andover Public Employee Committee agree to
provide health insurance coverage through the Group Insurance Commission.
2. For purposes of this agreement,the term"Subscribers"shall mean; all employees,retirees,
dependents or survivors, who pay the monthly insurance premium and are insured and
eligible under Chapters 32A and B, subject to the rules of the Group Insurance
Commission. The Town retains the right to adopt rules and regulations as provided for
under M.G.L. c32B, §14.
3. For purposes of this agreement, the term "Active" employee* shall mean an individual
employed by the Town of North Andover who is eligible and enrolled in the Town's health
insurance. Employee must regularly work a minimum of twenty (20) hours per week or
more and be enrolled in the Essex Regional Retirement System (ERRS) to be eligible for
the Town's health insurance. Employees who are enrolled in the Massachusetts Teacher's
Retirement System (MTRS) and work 18.75 hours per week or more are eligible to enroll
in the Town's health insurance.
*Employees in collective bargaining units should refer to the applicable bargaining
agreement for language regarding re-hires, layoff, etc. If an employee is rehired by the
town within two (2) years of the date last employment, they would pay the contribution
rate previously paid.
4. For purposes of this agreement, the term "Retiree" shall mean an individual who was
employed by the Town and is entitled to health insurance benefits under Chapter 32B.
5. For purposes of this agreement, the term "Medicare eligible retiree" shall mean an
individual who was employed by the Town and is entitled to health insurance benefits
under Chapter 32B who has reached the age of 65 and is eligible to enroll in Medicare
insurance through the federal government.
6. For purposes of this agreement, the term "Non-Medicare eligible retiree" shall mean an
individual who was employed by the Town and is entitled to health insurance benefits
under Chapter 32B who has not reached the age of 65 or who is not eligible for Medicare
insurance through the federal government (i.e. does not have sufficient quarters in Social
Security or never paid the Medicare tax through a payroll deduction).
7. For purposes of this agreement, the term "Retired Municipal Teachers (RMT)" shall
mean a retired North Andover School Department Teacher who was receiving Group
Insurance Commission health insurance coverage prior to the Town joining the GIC on
January 1, 2014.
8. For purposes of this agreement, the term "Survivor" shall mean the legal spouse of an
employee or retiree who meets the requirements for the surviving spouse to receive benefits
under GIC rules and regulations. To be eligible as a surviving spouse, the survivor must be
enrolled in the Town's health insurance at the date of the subscriber's death. A Survivor
in the Column A or Column B contribution rate who drops coverage and re-enrolls shall
be grandfathered in the Column A or Column B contribution rate they previously paid.
o GIC Survivors Information
https://www.mass.gov/service-details/gic-survivor-health-insurance
Remainder of page intentionally blank
2
9. Premium Contribution Rate for Active and Non-Medicare Eligible
Retiree, Spouses and Survivor Subscribers
Effective July 1, 2023 (FY2024), premium contributions under the GIC for Active and Non-
Medicare Eligible Retiree, Spouses and Survivor Subscribers shall be based on the
following chart:
*Active employees enrolled in the Town's insurance prior to December 31, 2012 and enrolled at the
date of the MOA(February 14, 2019) are grandfathered at the Column A percentage contribution rate
in perpetuity.
An employee grandfathered in the Column A contribution rate who drops coverage and re-enrolls shall
pay the Column A contribution rate.
The UniCare Indemnity Plans with or without CIC are exempt from grandfathering(except for Retired
Municipal Teachers(RMT)). The rate of those plans and comparable plans offered by the GIC in FY24
(i.e., Harvard Pilgrim Access America and UniCare Total Choice) is 50%150% regardless of date of
enrollment.
COLUMN A COLUMN B COLUMN C
Percent Contribution of Percent Contribution of Percent Contribution of
Health Plan Plan Type/ Active and Non-Medicare Active and Non-Medicare Non-Medicare Retired
Category Eligible Retiree,Spouses,and Eligible Retiree,Spouses,and Municipal Teachers(RMT)
Survivors Subscribed Survivors Subscribed Subscribed and Retired
and Retired Prior to and Retired as of Prior to December 31,
December 31,2012 January 1,2013 and beyond 2013
Individual Family Individual Family Individual Family
Harvard Pilgrim Access America PPO/
Formerly UniCare Basicw/woutCIC National Network 50% 50% 50% 50% 25% 25%
UniCare Total Choice Indemnity/
Formerly UniCare Basic Broad Network 50% 50% 50% 50% 25% 25%
PPO-type/
UniCare PLUS Broad Network 25% 25% 25% 25% 15% 15%
Harvard Pilgrim Explorer
Formerly Tufts Navigator&HPHC POS/
Independence Broad Network 25% 25% 35% 35% 15% 15%
Mass General Brigham Health Plan
Complete HMO Formerly Always Health HMO/
Partners Complete HMO Broad Network 25% 25% 25% 25% 15% 15%
HMO/
Health New England Regional Network 25% 25% 25% 25% 15% 15%
PPO-type/
UniCare Community Choice Limited Network 20% 20% 20% 20% 15% 15%
Harvard Pilgrim Quality
Formerly Tufts Spirit&HPHC Primary HMO/
Choice Limited Network 25% 25% 25% 25% 15% 15%
3
Premium Contribution Rate for Medicare Eligible Retirees
10. Subscribers who are eligible or who become eligible for Medicare shall enroll in Medicare
coverage.
11. For the duration of this Agreement, premium contributions under the GIC for Medicare
enrolled Subscribers shall be based on the following chart:
COLUMB B RETIRED MUNICIPAL
TEACHERS(RMT)RETIREES,
COLUMN A MEDICARE SPOUSES AND SURVIVORS
RETIREES,SPOUSES SUBSCRIBED AND RETIRED
AND SURVIVORS PER BEFORE JANUARY 1,2014 PER
HEALTH PLAN PLAN TYPE/CATEGORY PERSON COVERAGE* PERSON COVERAGE**
Medicare Advantage/HMO
Tufts Medicare Preferred Limited Network 35% 15%
Medicare Supplement/Indemnity
National Network
UniCare Medicare Extension Formerly UniCare OME with and without CIC 35% 25%
Medicare Supplement/Indemnity
Harvard Pilgrim National Network
Medicare Enhance Comparable to Tufts Medicare Complement 35% 25%
Health New England Medicare Supplement/Indemnity
Medicare Supplement Plus I National Netwoi 1 35% 25%
*North Andover School Department teachers who retired or have enrolled on or after January 1, 2014,
the"Medicare Retirees, Spouses and Survivors"rates apply.
**The term "Retired Municipal Teachers" shall mean a retired North Andover School Department
Teacher who was receiving Group Insurance Commission health insurance coverage prior to the Town
joining the GIC on January 1, 2014.
Premium Contribution Rate for NON-Medicare Eligible Retirees
12. Premium contributions for Non-Medicare eligible retirees is dependent upon the
individual's retirement date, date subscribed to health insurance, and Union or Non-Union
status at time of retirement.
A. The following chart contains the premium contribution rates for HMO and HMO-Type
plans available to Non-Medicare eligible retirees
For the following Plans:
• Mass General Brigham Health Plan
• Health New England
• Harvard Pilgrim Quality
4
Union/Non-Union Family Plan Individual Plan
Non-Union Personnel
Prior to September 1, 2006 15.0% 14.0%
On or after September 1, 2006 25.0% 25.0%
All Municipal Unions
Prior to July 1, 2010 15.0% 14.0%
July 1, 2010—June 30, 2011 18.3% 17.6%
July 1, 2011 —June 30, 2012 21.6% 21.3%
On or after July 1,2012 25.0% 25.0%
School Nurses
Prior to December 31,2013 15.0% 15.0%
On or after January 1,2014 25.0% 25.0%
School Cafeteria Staff
Prior to July 1,2009 15.0% 14.0%
July 1, 2009—June 30, 2010 18.3% 17.6%
July 1, 2010—June 30, 2011 21.6% 21.3%
On or after July 1,2011 25.0% 25.0%
Teachers
Prior to December 31,2013 15.0% 15.0%
On or after January 1, 2014 25.0% 25.0%
School Administrative Assistants
Prior to July 1, 2011 15.0% 14.0%
July 1, 2011 —June 30, 2012 18.3% 18.3%
July 1, 2012—December 31, 2012 21.6% 21.6%
On or after January 1,2013 25.0% 25.0%
School Professional Support
Prior to September 1, 2012 15.0% 14.0%
Sept 1,2012—December 31, 2012 20.0% 20.0%
On or after January 1, 2013 25.0% 25.0%
School Custodians
Prior to December 1, 2012 15.0% 14.0%
Dec 1, 2012—Dec 31, 2012 20.0% 20.0%
On or after January 1, 2013 25.0% 25.0%
HMO Plans Family Plan Individual Plan
Retired Municipal Teachers 15.0% 15.0%
(RMT)Retired and Subscribed as
of December 31, 2013
Retired and subscribed on or after 25.0% 25.0%
January 1, 2013
5
B. The chart below contains the premium contribution rates for PPO*, PPO-Type and POS
plans available to Non-Medicare eligible retirees.
For the Following Plans:
• Unicare PLUS -PPO
• Harvard Pilgrim Explorer- POS
• Unicare Community Choice -PPO
PPO,PPO-Type Plans Family Plan Individual Plan
Retired Municipal Teachers 15.0% 15.0%
Retired and Subscribed as of
December 31, 2013
Retired and Subscribed as of 25.0% 25.0%
December 31, 2012 20.0%Unicare Community 20.0%Unicare
Choice Community Choice
Retired and Subscribed on or after 25.0% 25.0%
January 1, 2013 20.0%Unicare Community 20.0% Unicare
Choice Communi Choice
MENNEEMENEEM
POS Plans FamilyPlan Individual Plan
Retired Municipal Teachers 15.0% 15.0%
(RMT) Retired and Subscribed as
of December 31, 2013
Retired and Subscribed as of 25.0% 25.0%
December 31, 2012
New Subscribers Retired and 35.0% 35.0%
Subscribed on or after January 1,
2013
C. The chart below contains the premium contribution rates for Indemnity plans available to
Non-Medicare eligible retirees.
For the Following Plan:
• Harvard Pilgrim Access America
• Unicare Total Choice
Indemnity Plans Family Plan Individual Plan
Retired Municipal Teachers(RMT) 25.0% 25.0%
Retired and Subscribed as of December 31,2013
Retired and Subscribed as of December 31,2012 50.0% 50.0%
New Subscribers Retired and Subscribed on or 50.0% 50.0%
Plan Changes on or after January 1, 2013.
6
New Plans Offered For The Duration of this Agreement
13. If the GIC offers any new or additional plans to Active or Retired Subscribers during the
life of this Agreement, the Town and the PEC will agree to reopen the contract for
Sections 9 and 11 only.
Waiting/Hiatus Period
14. New employees of the Town are eligible to enroll in health insurance offered by the GIC
in accordance 805 CMR 9.01. Therefore, in accordance with 805 CMR 9.01(3), new
employees of the Town are eligible to enroll in health insurance offered through the GIC
within ten (10) calendar days of the first date of employment with the Town. GIC health
insurance benefits begin on the first day of the month following sixty (60) days or two (2)
full calendar months of employment, whichever is less. The period between the date of
employment and the effective date of coverage pursuant to 805 CMR 9.01(3) is hereinafter
referred to as the "Waiting/Hiatus Period." Eligibility for insurance coverage will be
determined in accordance with Massachusetts General Laws and applicable regulations,
including but not limited to, 805 CMR 9.01.
15. During the "Waiting/Hiatus Period,"the Town shall pay a"Waiting/Hiatus Period Stipend"
(Stipend) to those newly hired employees who have notified the Town within ten (10)
calendar days of employment that they have chosen to enroll in one of the health insurance
plans through the GIC. The amount of the Stipend will be equal to the employee's portion,
up to a maximum of 80%, of the premium or cost for whichever plan the employee has
chosen to enroll. To receive the Stipend, the employee must show proof of other health
insurance coverage during the "Waiting/Hiatus Period," (e.g., COBRA or other alternative
health insurance plan).
16. Newly enrolled employees/Subscribers who cancel their GIC coverage within sixty (60)
days of the effective date of the GIC coverage shall return the Stipend in its entirety to the
Town.
17. GIC Retroactive Effective Date of Coverage: Subscribers may request retroactive
coverage from the GIC in accordance with 805 CMR 9.01(4). Therefore, if a subscriber
incurs an unplanned or urgent medical expense(s) during the "Waiting/Hiatus Period" that
in sum exceeds the full-cost health insurance premium of the GIC's elected plan for the
"Waiting/Hiatus Period", the subscriber may file a written request to the GIC for approval
of health coverage to become effective on the first day of employment. Upon approval by
the GIC, coverage shall take effect as of the first day of employment. In this event, the
Town shall submit the full-cost health insurance premium for the "Waiting/Hiatus Period"
to the GIC in a timely manner. The employee shall reimburse the Town for the premium
and any Stipend amount already received through normal payroll deductions.
18. The provisions of subparagraphs 16, 17, 18 and 19 shall expire if and when the GIC
eliminates the "Waiting/Hiatus Period" as set forth in 805 CMR 9.01.
7
OPT-OUT Program
19. Effective July 1, 2023, for subscribers currently on the Town Health insurance, a per-
payroll payment will be made to equal on an annual basis:
$2,000 for individual plans; and
$4,000 for family plans.
See Appendix A for Opt-Out Program language
Health Coverage after June 30, 2024
20. The enrollment of Subscribers to the GIC shall remain in effect after June 30,2024,unless,
pursuant to a successor Agreement executed by the parties, notice is provided to the GIC
no later than December 1, 2023, that the Town will terminate its coverage with the GIC.
21. The Town Manager, or his designee, and the PEC shall commence negotiations for a
successor agreement no later than July 1, 2023. The PEC will evaluate any and all factors,
including average annual rate increases, to extending the coverage for an additional three
year period from July 1, 2024 through June 30, 2027. To facilitate negotiations, by
December 31, 2023, the Town shall request specific utilization and claims data from the
GIC pursuant to GIC CMR 8.05,Paragraph (29), §§a-b which shall be made available for
examination by the PEC.
Public Employee Committee (PEC) Meetings
22. The Public Employee Committee shall be composed of one (1) union officer from each
collective bargaining unit which negotiates with the Town and a retiree representative
designated by the Retired State, County and Municipal Employees Association. Each
union officer and the retiree representative shall have the option of allowing one
additional representative to attend meetings of the Public Employee Committee with the
Town.
23. The parties may establish a regular schedule of meetings to discuss the implementation of
this agreement and any issues relating to the effectiveness and efficiency of health
coverage for Subscribers. Such meetings may take place no less than quarterly, unless
agreed otherwise. Meetings will be held at times and places which are mutually agreed
upon by the Town and the Committee. In addition, either party may convene a meeting
upon seven (7) calendar days' notice to the other party, unless there is an emergency that
requires shorter notice. Meeting notices will be provided to the Town and to the Public
Employee Committee to the person and in the manner designated in writing by the Town
and the Committee.
8
24. Any employee who is a representative on the Public Employee Committee shall receive
time off to attend meetings of the Committee with the Town with full pay, if meetings are
during the employee's normally scheduled work hours.
Correspondence
25. The Town, through the Town Manager's Office or his/her designee, shall copy the
members of the Public Employee Committee on correspondence related to the Agreement
between the Town of North Andover and the Group Insurance Commission. Electronic
copies may be substituted when available in that medium.
Agreement Interpretation
26. Employees or retirees who have questions regarding the content of this agreement or need
assistance with interpretation of the language are encouraged to contact (through their
respective Union representative) the Town's Human Resources Department. The Human
Resources Department will address the issue and respond in writing to the party in a
reasonable period of time. If the individual is not satisfied with the response from the
Town's Human Resources Department, they may contact the Assistant Town Manager for
a meeting. If the individual is not satisfied with the written response from the Assistant
Town Manager, they may contact the Town Manager for a meeting. The Town Manager
will issue a written response to the individual's issues in a timely manner.
Severability Clause
27. If any provision or portion of this Agreement is found to be unenforceable or unlawful, the
remaining provisions or portions shall remain binding.
Scope and Modification
28. This "Memorandum of Agreement" shall constitute the whole of the Agreement between
the Town and the PEC. The Agreement may be modified only by a written agreement
approved in the same manner as the original Agreement.
Authorization to Sign Agreement
29. Each signatory to this Agreement is authorized to bind the entity he/she represents. The
PEC represents that it has the authorization and approval of a majority of the weighted
votes of the PEC and that this Agreement is binding on all Subscribers and their
representatives.
9
Signatures:
Executed on behalf of the Town of North Andover:
In Date:
Meliss 'Murphy-Rodrigues, Esq. Town Manager
Exe7tV on alf of the Public Employee Committee: Date
AFSCME—Clerical
AFSC '—Professiona Librarians
f
'SCME Pa lie Works
FF, L 5 —Airefighters
NEP al 1 2 —Communications Officers
NEPBA, Local 2A—Police Officers
NEPBA, cal 2B —Poke Sergeants
No tl A d er Cafet 'a Staff Association
Yrt-
h AnNVver Custodial Association
North Andov r—Edu Administrative Assistants Association
North clover o is L'eutenants
r th 4ndover Teachers Association
etrree e resent ry e
10
Revision History:
Approved: December 18, 2012
Amended: October 16, 2014
Amended: March 17, 2015
Amended: November 30, 2015
Amended: November 1, 2016
Amended: November 14, 2017
Amended: February 14, 2019
Amended: December 1, 2022
Amended: May 15, 2023
11
Opt-Out Program
Effective July 1, 2023 (Fiscal Year 2024)
For purposes of the Opt-Out Program, an Active employee is defined as an employee who
remains eligible for the employer's contribution rate (excludes unpaid leaves of absences) for
health insurance.
The Town shall establish an Opt-Out Program for Active employees who are enrolled on
the Town's health insurance plan and opt-out of the health insurance program under the
following terms and conditions:
a. The Opt-Out program is available to Active employees only;
b. The annual Opt-Out incentive shall be:
• Family coverage - $4,000
• Individual coverage - $2,000
• Change from a family coverage to individual coverage - $2,000
All payments will be pro-rated based on the number of months in the fiscal year
the employee is not enrolled in the Town's health insurance and participating in
the Opt-Out program.
C. Employees who voluntarily tenninate insurance coverage during the plan year
will receive a pro-rated Opt-Out incentive on the following basis:
Bi-Weekly Opt-Out= Opt Out Payment X#of months w/o coverage/# of payrolls
remaining in fiscal year 12
d. Opt-Out payments shall be made bi-weekly, according to the Town's regular
payroll practices.
e. To be eligible, Active employees must meet one of the following eligibility
requirements:
el. Existing Subscribers:
Employees who were enrolled in the Town's health insurance effective
07/01/2021 and have had continual enrollment in the Town's health
insurance through 06/30/2023 will be eligible for the Opt-Out incentive on
07/01/2023 (Fiscal Year 2024).
e2. Recent Subscribers:
Employees hired during the period from 07/01/2021 to 06/30/2023, who
enrolled in the Town's health insurance at hire and have had continual
enrollment through 06/30/2023, will be eligible for the Opt-Out incentive
on 07/01/2023.
e3. New Hire/New Subscriber:
Employees hired on or after 07/01/2023, or those employees who enroll in
the Town's insurance as a result of a qualifying event during this period,
must be continuously enrolled in the Town's insurance for a minimum of
twenty-four (24) months before eligible to receive the Opt-Out incentive.
12
e4. Employee with Change in Insurance Coverage During Plan Year;
Employees who change insurance coverage from individual to family
coverage during the plan year and then later decide to Opt-Out of the
Town's health insurance will be eligible for the Opt-Out incentive in the
amount of$2,000.
Employees who change insurance coverage from individual to family
coverage during the plan year and maintain family coverage for two (2)
years and then decide to exercise the Opt-Out will be eligible for the
$4,000.
f. Employees who are enrolled in an individual plan, increase coverage to a family
plan and then decrease coverage to an individual plan are not eligible for the Opt-
Out Incentive;
g. Employees enrolled in an individual or family plan must show evidence of
alternative insurance coverage before they are allowed to Opt-Out of the Town's
health insurance;
h. The Town will pay the Opt-Out incentive via payroll on a bi-weekly basis, less
applicable payroll taxes. Payments are not pensionable. For school department
employees, payments will be made on the school payroll schedule. If an
employee needs to re-enroll on the Town's insurance, the Opt-Out incentive
payments will end on the first payroll that health insurance premiums are
deducted;
i. If there is a qualifying event in which an employee who has opted-out needs to
opt-back onto the Town's insurance, the employee will be eligible to do so as
long as enrollment is done within the thirty (30) days of the qualifying event.
Employees returning to the Town's insurance are grandfathered at the Column A
or Column B contribution rate they were paying;
j. Apart from a qualifying event, any employee who has opted-out can re-enroll in
the Town's health insurance during any open enrollment period;
k. Married Town employees (i.e. both working for the Town of North Andover) who
are currently enrolled in separate individuals plans may not enroll in a family plan
for purposes of receiving the Opt-Out incentive;
1. School department employees who participate in the Opt-Out incentive effective
07/01/2023 and who work a. September to June payroll period, will receive the
Opt-Out incentive in their paychecks beginning September 2023;
in. The Opt-Out program will have a sunset provision of June 30, 2024;
n. Any issues or disputes that arise regarding enrollment periods or rules and
regulations relating to the implementation of this program shall be reviewed by
the Town's Human Resources Director. The Human Resources Director will
convene a committee comprised of two (2) representatives appointed by the Town
Manager and two (2) representative appointed by the PEC. The committee shall
make a recommendation to the Town Manager. The Town Manager's decision
shall be final and binding; and
o. Employees who are no longer eligible for the health insurance benefit or terminate
employment are not eligible to participate or continue to receive the Opt-Out
incentive payment. If an employee is receiving the Opt-Out payment and passes
away, the Opt-Out payment will be terminated.
13