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Update: Judge OKs Providence drug-administrator switch

5:19 PM Tue, Dec 30, 2008 |
Maria Armental    Email

PROVIDENCE, RI -- The city of Providence can change the drug-benefits administrator for its union workers to CVS/Caremark as of Thursday, as proposed, Supreme Court Chief Justice Frank J. Williams said today.

However, under Williams' temporary order the city cannot change its medical-benefits administrator.

City officials are seeking to leave long-time administrator Blue Cross & Blue Shield of Rhode Island for UnitedHealthcare of New England. The medical-benefits administrator switch proved to be most controversial part of Providence's two-tiered proposal that city officials said could save the city $11 million for the next three years.

At issue is whether the city can change administrators without first negotiating with the unions and whether the proposed new administrators would offer "equivalent services."

The change would affect city teachers, police officers, firefighters, school and City Hall staff, and retired city employees.

Williams has ordered both sides to seek binding arbitration.

This afternoon, Providence Mayor David N. Cicilline said of Williams' ruling:

"I am pleased that the decision issued by Chief Justice Williams will allow the City to realize a substantial portion of the anticipated $11 million in savings over three years for taxpayers through the implementation of CVS Caremark as the City's prescription drug provider.

"We will continue to pursue implementation of the new health care administrator in order to realize millions more in savings for taxpayers through the agreed upon fast-track arbitration process."

-- With reports from Journal staff writer Philip Marcelo

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Comments

Donna said:

Must be nice to actually have a CHOICE!! Where I work, we were told we are switching from United to Blue Cross and if we didn't like it, too bad, you can always decline the coverage. Like that's a choice if you have a family. Poor spoiled brats.



anonymous said:

Kudos to all the union officials and members for working together!! Obviously the judge understands the union contracts much better then the mayor. The mayor thinks that he is able to do whatever he chooses and the rank and file workers will just stand by and let it happen--obviously NOT! The mayor should focus his efforts on settling ALL City contracts!!




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