April 25, 2011

Boston Mayor Thomas M. Menino's tireless advocacy to arrest the skyrocketing costs of municipal employee health insurance has finally paid off. In what is being touted as another example of strong mayoral leadership, Menino, reached an agreement with the 36 public employee unions, that will contain the future growth of health insurance costs immediately ($1.5 million per month) and with state approval will permanently achieve long-term municipal health insurance reform (potentially $70 million over four years).

The deal, which still has to be approved by union members, has three key elements:

• A 2.5 percent increase in the employee premium contribution, which will be phased in over a two-year period. This increase will apply to all active employees as well as to retirees who are enrolled in a non-Medicare health plan.

• Plan design changes will include: increasing pharmaceutical, office visit, and emergency room co-payments. The plan design changes also create a tiered office visit co-payment based upon whether the enrollee is utilizing the services of a primary care physician or a specialist.

• A one percent increase in the retiree contribution to Medicare health plans that will go into effect at the end of the four-year period.

Boston currently provides health insurance to more than 28,300 employees, their families, retirees and surviving spouses. For more information online, go to the city's website at www.cityofboston.gov.