On Wednesday morning I received a call from Bob McCarthy, Amherst Personnel Director, who explained why the Town pays $250 to retirees directly when they pay the $250 deductible out of their own pocket when they, or their spouse, are hospitalized.

If the town added this as a rider to the health contract it would cost thousands more than the town directly pays the retirees who are hospitalized.

In 2007 there were a total of 6 retirees who were hospitalized which cost the Town $250.times 6 = $1500. This clearly shows the great amount of money the town saved.

This begs another question. Can we add the rider later if we see these costs rising?

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