Criticizing government has long been a major-league sport in the Bay State, so when something positive comes out of Beacon Hill, we need to pay attention. In July, The Governor signed a bill that allows for cities and towns to join with state employees in electing coverage under programs provided through the Massachusetts Group Insurance Commission. According to all sources, the state program, using the leverage of its large number of covered employees, is able to provide quality health insurance at a substantial savings over plans written for individual municipal employee groups. In addition, the GIC’s record of annual premium cost increases has been substantially below those of most individual arrangements.
Due to the timing of the legislation, it has been difficult, so we are told, for municipalities to take advantage of the new option by its October deadline. The Town of Saugus, one of only a handful of towns that have signed up for this year, estimates possible savings of between $1 million and $1.5 million per year. At a time – is there ever not such a time?- when cities and towns are struggling to keep property tax growth under control, here is a true win-win opportunity. Municipal officials and employee groups should take advantage of this opportunity to show their willingness to achieve significant savings on the spiraling health insurance costs without any loss off benefits. Such opportunities don’t come around too often. The remaining municipalities now have a year to decide whether or not to go the GIC route next fiscal year. This would seem to be ample time for officials, municipal workers unions and other employee groups to embrace this cost-saving approach and, in the process, perhaps gain some taxpayer good will.
Due to the timing of the legislation, it has been difficult, so we are told, for municipalities to take advantage of the new option by its October deadline. The Town of Saugus, one of only a handful of towns that have signed up for this year, estimates possible savings of between $1 million and $1.5 million per year. At a time – is there ever not such a time?- when cities and towns are struggling to keep property tax growth under control, here is a true win-win opportunity. Municipal officials and employee groups should take advantage of this opportunity to show their willingness to achieve significant savings on the spiraling health insurance costs without any loss off benefits. Such opportunities don’t come around too often. The remaining municipalities now have a year to decide whether or not to go the GIC route next fiscal year. This would seem to be ample time for officials, municipal workers unions and other employee groups to embrace this cost-saving approach and, in the process, perhaps gain some taxpayer good will.
cc: Editor, Old Colony Memorial
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