Monday, August 15, 2005

Towns get creative in trimming costs

Alternate health plans pay off
Towns find new health plans paying off Towns get creative in trimming costs


By Matt Carroll, Boston Globe, August 14, 2005

Municipal governments, staggering under the weight of health insurance costs that have jumped by more than half in the last five years, are experimenting with new ways to contain the budget-busting premiums.

Some communities, such as Milton and Brockton, have decided to set up self-insurance funds. Others, such as Carver, Lakeville, Marion, and Mattapoisett, are bolting from larger insurance pools to create their own group. And in Pembroke, among other towns, employees are being made to pick up more of the cost of their healthcare coverage.

Many officials hope legislation brewing on Beacon Hill will give them more tools to deal with what is often the hottest topic in union contract negotiations.

Senate President Robert E. Travaligni has proposed a bill that would allow local officials to set the percentage of medical costs paid by union employees, bypassing contentious contract negotiations. The legislation is strongly opposed by unions, resistance that leaves some town officials skeptical it will pass.

Officials also say that local solutions won't permanently cure what is essentially a national problem.

All costs are rising, but nothing rivals healthcare expenses, which have skyrocketed 63 percent since 2001, according to a study of 32 communities issued last month by the Massachusetts Taxpayers Foundation and the Massachusetts Municipal Association.

The increase is quadruple the growth rate in local budgets, the study said, with health insurance expenses now eating up 10 percent of municipal spending.

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1 Comments:

Blue Cross of California said...

Great blog I hope we can work to build a better health care system. Health insurance is a major aspect to many.

2:20 PM  

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