Friday, December 08, 2006
As Town Manager Michael Driscoll and his department heads preparing for the annual budget process, they have a problem. Much of anything new profits are headed their way will be sucked up by the rising cost of worker health insurance.In cities and towns across the state, the rate of worker health care is a major problem. Like businesses, municipalities have been hit with double-digit annual hikes in health rate for at least the last five years. But town governments and school systems, bounce by union contract; have a more hard time regulate their policies to decrease rate.
The state government must make it easier for governments to find investments by better management of their programs.
A report this week by the Boston Municipal Research Bureau shows the impact on the Bay State’s largest city. Boston spends $235 million a year for health insurance, an amount that has improved an average of 11 percent a year over the last six years. During that period, all other city costs increased just 18 percent. It takes five average Boston assets taxpayers to wrap the city’s share of just one worker’s family health insurance.
All non-union staff have been paying 20 percent, while the town covers 80 percent in health indemnity premiums since July 1, 2005, said Driscoll.
The Boston statement recommends one change that could bring actual investments to all cities and towns. It proposes the legislature allow municipalities to join the Group Insurance Commission, which manages the state’s worker insurance system. Through better flexibility in plan aim and rate management, the GIC has kept the state health rate enhance to 61 percent over the last six years, evaluate to 92 percent for Boston’s system.
posted by renaa
@ 3:57 PM
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