Finally, it seemed, the Legislature was ready to defy the unions and take positive action to help cities and towns curb their employee health insurance costs. Now, it turns out, there may have been a double-cross.
Language quietly inserted in the Senate version of the relief package could cost some as much as they figure to save by gaining greater flexibility in the type of health insurance plans they offer workers.
A new mandate added as a "technical amendment" to the FY 2012 budget approved by the Senate, would require communities to adjust retiree health insurance premiums so the percentage they paid was no greater than that paid by active employees.
The Massachusetts Municipal Association, in an urgent mailing to members this week, called the provision "a reform-killer," noting, "In many communities this would completely wipe out the savings from any plan design reform, provide an unaffordable windfall for retirees, and dramatically increase OPEB (Other Post-Employment Benefits) liabilities by millions of dollars."
If the legislative leadership is serious about helping cities and towns deal with crippling health care costs, they will make sure this and several other Senate add-ons like a burdensome review board process and limits on the types of plans that can be offered, are removed from the final budget that emerges from conference committee later this month.
Taken together, these provisions seem almost designed to discourage municipalities from seeking changes in their health plans despite the fact such changes would save them collectively an estimated $100 million a year.
Area mayors have been complaining for a long time now that rising health costs are the main obstacle to any effort to improve municipal services or stabilize property taxes. Finally, it appeared, the Legislature was ready to help. Maybe not.
Senate Majority Leader Fred Berry, D-Peabody, and other members of the North Shore legislative delegation should rally behind their colleagues on the municipal side and work to achieve meaningful as opposed to meaningless reform.
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