Boston Should Join State Workers' Health Care Plan To Reduce Costs, Report Says

Boston should attempt to join Massachusetts' health care plan and change some of its health care policies for city workers to reduce health care costs that have nearly doubled in the past six years, according to a report released on Thursday by the Boston Municipal Research Bureau, the Boston Globe reports. The report found that increased health care costs in the city now require the property tax bills of about five families to pay the premium of one city employee's family health care plan. According to the report, Boston's health insurance spending was about $235 million this year, an increase of 92% since 2001. Boston provides health benefits for 28,600 city workers, about 45% of whom are retirees. The report states that if Boston was a part of the state health care system, the city would have saved $6 million this year. Joining the state system would require approval by the state Legislature. Draft legislation would allow Boston and other municipalities to join the state's system, "but it is likely to meet resistance from the unions," the Globe reports. The report also recommends that the city establish a reserve account to help pay for the increased costs in future years, expand its administration program to include more control over health care decisions and avoid hiring outside contractors and consultants. In addition, the report recommends that retirees enroll in Medicare when they turn 65 years old. There are currently 1,700 employees who are eligible for but not enrolled in Medicare (Viser, Boston Globe, 11/30).

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