Massachusetts Communities Join State's Group Insurance Commission To Lower Health Care Costs

Main Category: Health Insurance / Medical Insurance
Article Date: 24 Jan 2008 - 7:00 PDT

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Several Massachusetts communities have joined the Group Insurance Commission, the state's employee health care system, as a way to save money, the Boston Globe reports. Under state law adopted in July 2007, public groups can join the state plan to lower health care costs. Five communities, four regional school districts, a charter school and two regional planning councils joined the plan last year, and the enrollments will take effect in July for nearly all of the entities.

Andrew Bisignani, town manager of Saugus, said joining the insurance group is expected to bring the town modest long-term financial relief of about $300,000 this fiscal year, with employees saving an average of $6 per week in premiums for some family plans. Although the state plan requires some higher copayments, Bisignani said most employees will save money by sharing in the overall cost savings. In Winthrop, Town Council President Thomas Reilly estimated the town will spend $250,000 less in health care next fiscal year than this year, and $750,000 less than what it would have paid had it remained with its current insurer.

Joel Barrera, senior project director for the Metropolitan Area Planning Council, estimates that 30 municipalities and other entities will attempt to join the system, with about 10 enlisting by Oct. 1, which is the deadline for communities seeking to join the group in FY 2010. Dolores Mitchell, executive director of the Group Insurance Commission, said joining might not be in the best interest of some communities that already are working to reduce health costs. She said, "But there are some that would really save money, and I think they ought to give it serious thought. We will help in any way to make the transition work for them" (Laidler, Boston Globe, 1/20).

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