A major test faces the Peabody City Council tonight when it is presented with legislation that would give the Bettencourt administration greater flexibility in its effort to reduce the cost of employee health benefits.
Not surprisingly, the unions representing city and school employees are unhappy with the move, and their members are expected to show up in force for tonight's meeting. But there's no question adoption of the legislation is in the best interest of taxpayers while, it should be noted, still leaving municipal employees with first-rate benefits that are very reasonably priced.
The cities of Salem and Beverly have already voted to adopt the bill, which allows cities and towns to move employees to the state Group Insurance Commission (GIC) — which has seen much lower premium increases than most municipal plans — after negotiating with their unions. Enrollment in the GIC is not automatic, but the prospect of same has allowed municipalities to bargain with their unions for more affordable terms — higher co-pays and deductibles, having employees pay a greater share of premiums, etc. — when it comes to health benefits.
Beverly Mayor Bill Scanlon has said he expects to save taxpayers $1.2 million as a result of a new health deal that will be offered his employees beginning April 1. And that's with the city continuing to pay 80 percent of employee premiums.
And in a report released yesterday, the Massachusetts Taxpayers Foundation said at least 91 communities have already taken advantage of the law to wrest savings that will exceed "by far" the initial estimate of $100 million.
According to MTF president Michael Widmer, "These huge savings will benefit everyone — cities and towns, municipal employees and retirees, and taxpayers. The savings will grow dramatically in the years ahead, preserving important services such as public education and public safety while avoiding the layoffs of thousands of municipal employees across the state."
No question there will be some pain for municipal employees who, like virtually everyone in the private sector, will have to get used to spending more money out of pocket for the care they receive. But the current system was simply unsustainable, and increasingly cities and towns were finding themselves having to sacrifice personnel and services in order to pay their share of skyrocketing health insurance premiums.
By law, the blow to employees is softened by the requirement that some of the first-year savings be shared with them. And the fact is that many will see their premiums go down under the new plans.
Unfortunately North Shore communities, according to the MTF analysis, have been slow to take advantage of the new legislation. (A chart accompanying the report showed only Beverly and Salem having adopted the reform bill, with a vote on adoption scheduled to be taken soon by the Masconomet Regional School Committee.)
Peabody Mayor Bettencourt, who made his support for the reform very clear during last year's election campaign, is to be commended for bringing the legislation forward. We hope a majority of the council will display similar courage.
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