Peabody council to debate new health care law

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February 9, 2012

By Jesse Roman Staff writer The Salem News Thu Feb 09, 2012, 04:45 AM EST

PEABODY — The Peabody City Council will consider tonight whether to adopt a new municipal health care law that could save the city millions of dollars per year.

The law, passed by the Massachusetts Legislature last summer, gives cities and towns across the state much broader power in negotiating with unions over health benefits. As of Feb. 1 at least 53 communities have formally adopted the law, which is required in order to use the new negotiating rules enacted by the Legislature.

State officials had predicted the total savings for cities and towns would be close to $100 million, but it appears the savings from the law could be much more, according to the Massachusetts Taxpayers Foundation. Already, nine communities have adopted the law and negotiated contracts with city unions, resulting in a savings of $30 million, according to the taxpayers foundation. The savings come by shifting some of the health insurance costs onto employees in the form of higher co-pays and deductibles, That's possible because the law essentially takes away a union's ability to dig in and veto changes in health plans, but also guarantees municipal workers that they will do no worse than state employees.

In August, a health care consultant told the City Council that Peabody could save as much as $4 million per year in health insurance costs under the new negotiating rules. Beverly, one of the towns that has already adopted and renegotiated union contracts, will save an estimated $1.2 million per year under its new health insurance agreement with city unions.

Leading up to the November election, each Peabody City Council candidate seemed to support adopting the health care negotiating changes, as did new Mayor Ted Bettencourt.

The council meets at 7:30 p.m. in City Hall.

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Peabody council to debate new health care law

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