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Mayor Menino’s Proposal to Save Tax Payers' Money on City Health Insurance Costs

As you know, the cost of healthcare has increased significantly over the past decade and those costs have led to increases in what health insurance companies charge beneficiaries.

For the City, the cost of health insurance has increased by 142% over the past 10 years—by comparison, all other City expenditures (salaries, capital projects, etc) have increased by only 27% over the past decade. That’s a big increase for health insurance and the growth rate isn’t getting any smaller in the near term.

Every dollar that is spent on increasing health insurance costs is a dollar that could be spent on other priorities like big belly trash cans; new traffic lights on Meridian; the City Yards…etc.

To address this urgent problem that risks spending an increasing share of the City’s budget on health insurance instead of other priorities, the Mayor has announced a series of steps to slow the growth of costs.

1. The Mayor has filed a home rule petition with the City Council to create a governing board that would approve health insurance plans for City employees. Representatives of labor unions, administration members, and healthcare experts will work together to decide the content of each plan and how much City employees will pay toward that plan in co-pays and deductibles. This board is similar to what state employees already have with the Group Insurance Commission (“GIC”).
 

2. The Mayor has also filed a statewide version of his local governing board plan and has stated he is prepared to participate in a statewide referendum supporting this change (if needed).

I ask that you contact your At Large and District City Councilors to get them on record supporting this plan to save taxpayers' money.

Please contact Ernani DeAraujo at ernani.dearaujo@cityofboston.gov with any comments or questions.

 


 

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