The following is an open letter sent by Mass Retirees to the Group Insurance Commission in opposition to what we consider to be cost shifting measures. These plan design options are scheduled to be voted on by the 17-member Commission on Thursday, February 12th. If approved, the measurers will take effect on July 1, 2026.
Matthew Veno
Executive Director
Group Insurance Commission
1 Ashburton Place
Boston, MA 02108
Dear Director Veno:
Mass Retirees has deep concerns regarding most of the ten plan design options now before the GIC. Specifically, our primary concern is that most of the changes now under consideration do nothing to address the systemic causes of rising health insurance costs.
While we both appreciate and understand the Commonwealth’s budgetary concerns, cost shifting onto the backs of those already struggling with healthcare affordability is not the answer. Forcing retirees and employees to pay more in out-of-pocket costs or degrading the quality of the GIC’s excellent plan design should not be viewed as a solution.
From the point of view of our Association, there is both a short and long-term aspect to the issues now before the Commission. In the short-term are the plan design options and subsequent premium contribution rates for FY27.
Contingent upon the passage of statutory protections for GIC enrolled retirees and employees, Mass Retirees supports the implementation of a uniform methodology for carrier reimbursement to out-of-network providers. In addition, we also support the implementation of Prudent RX.
Per the information shared at the GIC’s January meeting, the combined savings for both items is nearly $20 million for FY27. Our Association also stands ready and willing to work with the GIC to assist in communicating with and educating enrollees on the details of these changes – should they be approved by the Commission.
However, we view the remaining plan design options as harmful cost shifting. The two items of the greatest concern for retirees are the increase in contribution rates and the elimination of hearing aid coverage for those enrollees over the age of 22.
The state’s decades-old policy has been to provide affordable health insurance benefits to surviving spouses at a 10% contribution rate – regardless of the rate paid by the deceased spouse. This uniform policy serves not only to provide survivors with affordable health insurance, but to help thousands avoid the financial hardship that often follows the loss of a spouse. A sudden change in this policy is inherently unfair.
Similarly, discontinuing the hearing aid benefit will cause irreparable harm to a small subset of retirees and survivors who depend on this benefit to combat severe hearing loss. Without the hearing aid benefit, many retirees would struggle with the ability to purchase the devices on their own. As several members have recently shared, this would result in some retirees being relegated to a “silent world”. Given the relatively small savings to be found in eliminating the benefit, we urge the Commission to maintain the current hearing aid policy.
In terms of the options to increase copayments and deductibles on non-Medicare enrolled retirees and employees, we are concerned about the impact of these increases on healthcare affordability.
This is particularly true when it comes to increasing the annual deductible and doctor visit copayments. These two options unfairly saddle those enrollees suffering from a chronic illness or injury with an unfair cost burden. Out-of-pocket costs quickly add up, particularly for those in need of care and tests on a regular basis.
Finally, we continue to be concerned by the prospect of an abrupt end of coverage for GLP-1 for weight loss. We believe that the GIC’s steps to find middle ground are the right approach and that proper time should be given to measure the effectiveness of the Vida Health program.
We urge the GIC to engage in a far more aggressive and active approach to cost containment that address the underlying and systemic causes of healthcare inflation.
Additionally, Mass Retirees calls on the Commission to support the implementation of a Medicare Buy-In program, whereby the Commonwealth will buy Medicare access for non-Medicare eligible retirees – which total more than 11,000 current GIC enrollees. This plan not only represents significant savings for the Commonwealth, but also for retirees.
Again, thank you for your consideration of these issues. I look forward to working together on all issues of common interest in the weeks and months ahead.
Sincerely,
Shawn Duhamel
Chief Executive Officer
Mass Retirees Association
CC: Group Insurance Commissioners