Retiree health care costs will rise following BOA vote

Somerville City Solicitor John Gannon at the May 28 Board of Aldermen meeting, explaining that rescinding a 1979 ordinance would give “intellectual honesty” to Mayor Joseph Curtatone's authorizing decreased city contributions to retirees' health care premiums. By Tom Nash Facing a possible $13 million budget shortfall in the upcoming fiscal year, Mayor Joseph Curtatone gave the Board of Aldermen two choices at its May 28 meeting: rescind an illegal 1979 ordinance limiting the city's ability to raise insurance premiums or force him to issue pink slips to city employees the next day. An overflow crowd, mostly senior citizens, attended the meeting to hear what was expected to be a vote on whether retired employees would face increased health insurance payments. Instead, they watched as the Board learned their approval wasn't required and that only a "housekeeping amendment" stood in the way of Curtatone increasing the payments from 10 to 25 percent for most retirees starting July 1. The day before the meeting, local media outlets published an editorial by Curtatone stressing the need for the Board's approval of his new plan. "I understand that this is a hard vote," he wrote. "We can all agree that dealing with this crisis will require everyone to make some sacrifices ... But when that spirit of shared sacrifice is extended to our retirees, it's not surprising that some aldermen are reluctant to make the call." The Board learned Thursday from City Solicitor John Gannon that after speaking with state officials Wednesday he learned a vote was not needed - the power to change the rates lies with the Mayor. The only thing standing in the way of Curtatone raising the contribution for retired city employees from 10 to 25 percent was a 1979 ordinance that left the city open to lawsuits if it remained on the books. Responding to the Board's reluctance to put their indirect stamp of approval on the rate increase, both Gannon and Curtatone warned the city could be sued if the law remained. "I should note strenuously that this is just a housekeeping amendment," Gannon said. "The requested action would bring intellectual honesty to the order." "You leave ourselves quite exposed if we don't fix it, and that's the bottom line," Curtatone added. "Whether you agree on this or not, we're exposed either way." While acknowledging the vote's necessity, several Aldermen criticized the Mayor's administration for keeping them in the dark. "(Health care) is a problem that's been ignored for a long time," Alderman-at-Large Bruce Desmond said of the impending rate increase. "It appears they're taking away the ability for the Board to make this decision." "I am a little disappointed we didn't know about this before," Ward 3 Alderman Tom Taylor said. "It would've saved a lot of heartache and grief." Citing the need to discuss the possibilities of litigation being filed against the city, the Board voted to discuss the issues in executive session. The audience waited as the Aldermen left the room and discussed the issue behind closed doors for an hour. Carl Stauffer, a retired Somerville High School teacher, explained while waiting for their return that even a slight increase could push some retirees over the edge. "The (retirees) who have been out 20 years - for someone making $1,000 a month, a $50 increase would kill them," he said. "I'd like to see some transparency, not just sudden decisions," Stauffer added. When the aldermen returned, they voted unanimously to rescind the 1979 law, leaving Curtatone open to increase the percentage retirees will pay for their premiums. Beyond the planned increase to a 25 percent contribution, various options for Medicare plans remain on the table - some of which could leave as many as 53 retirees unqualified for coverage. Possible plans will be discussed in upcoming Finance Committee meetings - although the final authority remains with Curtatone.

Comments

[Lynne Murphy]

I think it is bad timing for the Mayor of Somerville to increase health care costs by 25% in August and then another increase in October. The retirees are on a fixed income and this increase could actually make some of the retirees become homeless. If there should be an increase, then it should be gradual and not an all out increase three-fold.

[Susan Bottari]

I understand the current economic climate and the situation the Mayor of Somerville finds himself, however, I can't believe that some solution can't be reached to reduce the burden this will cause to the eldest people who have served our city. There has to be a a better solution for instance a sliding scale based on income and years of service. People who have been retired for 15 to 25 years can barely afford their current medical cost, let alone double or tripling them as this increase will do. This increase plan will impact the eldest retirees the most. I, for one, am ashamed that a better solution can not be reached to assist the most vulnerable economic class and better provide for the people who have served to keep Somerville a great place to live.

[Retired Fire Fighter]

Transparency is a word our City Gov't doesent understand. I was told my increase is to 75% how about a 74% increase. I have already taken 0% pay raise, layoffs over the years. How much has City Hall increased in staff. Why? We have less of everything in business staff goes down when less is served."You leave ourselves quite exposed if we don't fix it, and that's the bottom line," Curtatone added. "Whether you agree on this or not, we're exposed either way."
Do they listen to themselves. "Intellectual honesty" What a joke.

[George]

"The (retirees) who have been out 20 years - for someone making $1,000 a month, a $50 increase would kill them," he said."

That is exactly what happened to me.