Health Costs Overwhelm Local Budgets
Boston Globe Editorial
Healthy cooperation
July 25, 2005
A STUDY from the Massachusetts Taxpayers Foundation measures the stinging costs of providing health coverage to municipal workers. Changes in employee contributions and plan offerings may be necessary to keep rising healthcare costs from debilitating the operating budgets of cities and towns.
The study, conducted with the Massachusetts Municipal Association and released last week, found that taxpayer-funded healthcare costs for municipal workers rose 63 percent from 2001 to 2005, more than four times the overall rate of growth in local budgets. More than half of new revenues in cities and towns went to cover increases in healthcare costs, leaving little opportunity to improve basic services. And municipal managers are nearly helpless to deal with the problem.
There is a better way to provide quality healthcare at a reasonable cost to public employees. Municipal managers and union leaders need look no further than state government, where workers enjoy excellent, affordable health coverage. The annual increase in the cost of providing health coverage to state workers is about half that for municipal workers.
A quasi-independent body -- the Group Insurance Commission -- ensures that more than 250,000 state workers, dependents, and retirees receive quality health insurance and other benefits at a reasonable cost. Plan designs and price structures are discussed rationally among labor, management, and healthcare economists. The commission can be counted on to press private health plans for the best service for state workers. It can also take measures, such as adjusting workers' copayments, to protect taxpayers. The commission could be a model for local communities. Better yet, it could expand to take on the direct responsibility for overseeing healthcare benefits for municipal employees.
First, municipal unions must accept the need to seek solutions outside of the collective bargaining process. Even the most straightforward cost-saving proposals, such as requiring retirees to enroll in plans that bridge the gap between Medicare and the cost of medical service, often collapse under union resistance, according to Geoffrey Beckwith, head of the Municipal Association.
At the state level, the Legislature establishes the employee contribution for healthcare coverage. At the municipal level, the unions call the shots. Wisely, Senate President Robert Travaglini has proposed legislation that would provide city councils and town meetings with the same authority now enjoyed by the Legislature to set premium shares.Balance must be restored when the cost of workers' healthcare coverage cripples entire cities and towns.
Healthy cooperation
July 25, 2005
A STUDY from the Massachusetts Taxpayers Foundation measures the stinging costs of providing health coverage to municipal workers. Changes in employee contributions and plan offerings may be necessary to keep rising healthcare costs from debilitating the operating budgets of cities and towns.
The study, conducted with the Massachusetts Municipal Association and released last week, found that taxpayer-funded healthcare costs for municipal workers rose 63 percent from 2001 to 2005, more than four times the overall rate of growth in local budgets. More than half of new revenues in cities and towns went to cover increases in healthcare costs, leaving little opportunity to improve basic services. And municipal managers are nearly helpless to deal with the problem.
There is a better way to provide quality healthcare at a reasonable cost to public employees. Municipal managers and union leaders need look no further than state government, where workers enjoy excellent, affordable health coverage. The annual increase in the cost of providing health coverage to state workers is about half that for municipal workers.
A quasi-independent body -- the Group Insurance Commission -- ensures that more than 250,000 state workers, dependents, and retirees receive quality health insurance and other benefits at a reasonable cost. Plan designs and price structures are discussed rationally among labor, management, and healthcare economists. The commission can be counted on to press private health plans for the best service for state workers. It can also take measures, such as adjusting workers' copayments, to protect taxpayers. The commission could be a model for local communities. Better yet, it could expand to take on the direct responsibility for overseeing healthcare benefits for municipal employees.
First, municipal unions must accept the need to seek solutions outside of the collective bargaining process. Even the most straightforward cost-saving proposals, such as requiring retirees to enroll in plans that bridge the gap between Medicare and the cost of medical service, often collapse under union resistance, according to Geoffrey Beckwith, head of the Municipal Association.
At the state level, the Legislature establishes the employee contribution for healthcare coverage. At the municipal level, the unions call the shots. Wisely, Senate President Robert Travaglini has proposed legislation that would provide city councils and town meetings with the same authority now enjoyed by the Legislature to set premium shares.Balance must be restored when the cost of workers' healthcare coverage cripples entire cities and towns.
2 Comments:
It is unfortunate to see rising health care costs. Health insurance is a major aspect to many and I hope everyone has coverage.
It is interesting to hear health care costs overwhelmed local budgets. Health insurance is a major aspec to many.
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