Budget Amendment ID: FY2018-S3-266-R3

3rd Redraft GOV 266

GIC Composition

Messrs. Brady, Eldridge and Cyr, Ms. Gobi and Mr. O'Connor moved that the proposed new text be amended by inserting after section 24 the following section:-

“SECTION 24A. Chapter 32A of the General Laws is hereby amended by striking out section 3 and inserting in place thereof the following section: -

Section 3. There shall be established within the executive office for administration and finance, but not under its jurisdiction, a special unpaid commission to be known as the group insurance commission.  The group insurance commission shall consist of the secretary of administration and finance, the commissioner of insurance and the following members to be appointed by the governor, 1 of whom shall be a representative appointed from a list of 3 representatives who shall be nominated by the president of the Retired State, County and Municipal Employees Association of Massachusetts, 1 of whom shall be a health economist and at least 3 of whom shall be full-time state employees, 1 of whom shall be a member of the Massachusetts Public Employees Council, #93, AFSCME, Massachusetts State Labor Council, AFL/CIO, to be appointed from a list of 3 representatives who shall be nominated by the executive director of the Massachusetts Public Employees Council #93, 1 of whom shall be a member of the Massachusetts State Employees Association, National Association of Government Employees, to be appointed from a list of 3 representatives who shall be nominated by the president of the National Association of Government Employees and 1 labor representative to be appointed by the governor from a list of 3 representatives who shall be nominated by the president of Local 5000 SEIU/Trial Court and 1 labor representative to be appointed by the governor from a list of 3 representatives who shall be nominated by the president of the Service Employees International Union, Local 509, and 1 labor representative to be appointed by the governor from a list of 3 representatives who shall be nominated by the president of the Massachusetts Organization of State Engineers and Scientists, 1 of whom shall be a management representative who shall be appointed from a list of 3 representatives nominated by the Massachusetts Municipal Association and 1 of whom shall be a labor representative who shall be appointed from a list of 3 representatives nominated by the president of the teachers' union with the greatest amount of active and retired members enrolled in commission health plans. In addition, upon the transfer of 45,000 subscribers from municipal governmental units to the group insurance commission pursuant to section 19 of chapter 32B, there shall be an additional management representative to be appointed by the governor from a list of 3 representatives who shall be nominated by the Massachusetts Municipal Association and an additional labor representative to be appointed by the governor who shall be selected from a list of 3 representatives of municipal public safety employees nominated by the president of the Massachusetts chapter of the AFL/CIO.

Whenever an organization nominates a list of representatives for appointment by the governor under this section, the organization may nominate additional candidates if the governor declines to appoint any of those originally nominated. Not more than 55 per cent of the appointed members of the commission shall be members of the same political party. No member appointed by the governor shall be an insurance agent, broker, employee or officer of an insurance company. Upon the expiration of the term of office of an appointed member, that member’s successor shall be appointed in like manner for a term of 3 years. The commission shall be provided with suitable offices and may, subject to appropriation, incur expenses and appoint an executive director who shall be the executive and administrative head of the commission and who shall not be subject to chapter 31. The commission may authorize the executive director to appoint such employees as may be necessary to administer this chapter. There shall be paid by the commonwealth to each appointive member of the commission the necessary expenses actually incurred in the discharge of their official duties.

The commission shall adopt such reasonable rules and regulations as may be necessary for the administration of this chapter and shall make an annual report to the governor and to the general court which shall include any modifications or amendments made to contracts executed under this chapter. The commission shall also hold at least 2 public hearings annually to receive comments and feedback from interested parties prior to a board vote related to any amendment to plan design, cost sharing, deductibles or other state employee cost. The rules and regulations shall be in such form so as to enable employees to understand the benefits available from the insurance program, including the costs thereof.”.