How we arrived at our figures:

2. We took the premium cost for each plan, and multiplied each plan's premium by the number of employees on that plan.

1. We obtained from the city the number of people on the city's insurance and which plan they were on.

We did that for each month.  We totaled the months to determine total yearly costs for the premiums.  This is referred to as the "working rates" in our documents and represents the total 100% premium costs for the health insurance.

3. We multiplied that "Working Rate" total premium by 70% to determine the employer's premium share.

4. We multiplied that same total premium cost by  30% to arrive at the employee share.

Working Rates for 2005-8
= $20,824,595

based on figures from the City of North Adams
City should contribute
to the trust fund
= 70%

Employees should contribute
to the trust fund = 30%

Actual Insurance Costs for
2005-2008 = $19,038,275
based on figures from the city's general ledger

Employees should pay $5,711,483
= 30% of actual costs
$13,326,793 =
70% of actual costs
Employees paid
$6,314,590 =
33.17% of actual costs
City put into trust fund and paid ONLY
What we believe the 2 parties should have paid based on percentages of ACTUAL costs

What the parties actually paid according to the city's general ledger
  $12,812,624 = 67.3% of actual costs

City should pay

If the city had been putting their portion into the fund on a regular basis, as employees had, the medical insurance trust fund would have been fully funded and everyone would have paid their shares.(See Graph 1)

For most years, it appears that actual claims were less than anticipated  -- and so both parties should have been required to pay less than expected -- and there would be money left over. (See Graph 2)

Instead, here is what we believe actually happened. We believe the city simply used all the money the employees contributed -- and then just made up the difference. And since the total cost was about $1.2 million less than anticipated, when it made up the difference, the city paid less than the required 70% and the employees paid more.(See Graph 3)
Graph 1                                                           Graph 2                                                          Graph 3

*The above chart and all other health related charts on this site  reflect our opinion of the subject, based on the documents we received from the city.
Actual Costs:
Money that should be left in trust fund:  $1,786,320
No money left over
CLICK HERE to see the complete analysis that we believe shows the city has underfunded the trust fund and overcharged its employees. We worked with Boston Benefits in preparing this information. This analysis, and the linked tables, reflect our opinion based on documents provided to the unions by the city of North Adams. 
How We Got the Numbers
How We Got the Numbers
(This page  was prepared before we received data for more recent months.  We have added more recent data to this site. Generally, the recent data shows that the overcharging by the city is continuing. I have added some links on this page that will bring you to the more recent data.)

Page last updated: Jan 24, 2009  -- Eileen Gloster