AMESBURY — The spiraling cost of health care has persuaded Mayor Thatcher Kezer to back a measure that would take away town employee unions' right to negotiate for their health benefits.
Instead, the town would be able to design whatever health plan it wants for its employees.
Kezer has joined mayors from across the state, among them Boston Mayor Tom Menino, who want more control over the design of city health care costs, before this year's 11 percent increase busts Amesbury's budget. The Save our Communities Coalition is pushing reluctant legislators to enact a new law and pushing for a question on the 2012 ballot that would ask voters to support the measure in case Beacon Hill lawmakers refuse to support it.
Currently, unions negotiate their premium costs and the type of plan. In Amesbury, town and school employees pay 22.5 percent of the premium for Blue Cross/Blue Shield HMO Blue.
"This is a totally new coalition that we've created specific to trying to get the state law changed relative to our ability to control health care costs," Kezer said. "All of us, as mayors, are standing up saying, 'Folks, we have a problem and we need to address it now.' We're all getting hit with the budget buster. We can't wait another couple of years to address it."
Lawmakers have given cities and towns limited ability to save money and join the state's Group Insurance Commission. But mayors — including Kezer — have argued it's difficult to get unions to agree. Changes must be approved by a majority of unions, meaning if one union votes the change down, the city cannot adopt a change.
"We could save on the order of $500,000," Kezer said of the proposed change in law. "It all depends on how much we want to change the copays and the prescription plans. We could crank it up more, depending on how far you want to go with the changes."
State Rep. Mike Costello, D-Newburyport, and Sen. Steve Baddour, D-Methuen, both say they support similar plans.
"I am open to working with mayors and employees and looking at several option on the table," Costello said, noting the GIC and tiered programs. "It's important it's not one size fits all."
Costello said his concern with the plan the coalition is supporting is that bigger cities would get more bang for their buck, while smaller municipalities may suffer.
"I think cities should also look at the GIC and similar programs, and you don't have to look further than Newburyport," Costello said. "Employees came to the table and accepted a tiered program Blue Cross Blue Shield that is like the GIC but used the GIC as leverage against Blue Cross Blue Shield and came up with $600,000 in savings for taxpayers."
Costello noted the Legislature worked together with local authorities to make that deal happen.
"I think working together, we'll be able to come up with creative ways to save money and reduce health care costs overall," Costello said. "I've told the mayor and city employees I will help broker any compromise we can."
Baddour, who worked on a similar, defeated bill pertaining to health care plan design last year, said he's in support for anything that will cut health care costs.
"I'm all for any way to cut health care costs, save taxpayer dollars and preserve essential, core jobs," Baddour said. "We need to give municipalities the tools they need to rein in health care costs and ultimately save dollars and preserve jobs."
On the Senate side, Baddour said he's working with Senate leadership to craft something everyone can agree on.
"Obviously, there are members who don't support it," Baddour said. "I've talked with Thatcher, and they are really reaching out to labor unions and the Legislature and building this coalition to get support for these savings."
Baddour also said he hopes the problems with health care can be resolved before it can go to a debate over a ballot question.
Coalition
The coalition of mayors announced it was seeking a meeting with the governor, with Senate President Therese Murray, and Speaker DeLeo regarding the proposed legislation. Kezer said they've also requested a meeting with union representatives to speak to the changes.
In the town of Amesbury, increases to the current union rate copay of $5, as well as increases in the emergency room visit copay (currently $25), would save the city enormously Kezer said.
"What a $5 copay does for the insurance underwriters is it makes us a high risk community to provide insurance to, because the copay is so low," Kezer said. "People are going to use the system more whether they really need to or not. We're considered high risk."
Kezer said more control over how local benefits are designed might also mean taking a look at hospital stay copays, which currently stand at zero, and prescription drug benefits, which are tiered at $10, $20 and $35, depending on whether the drugs are generic, name brand, or premium.
Amesbury also has another hurdle to cross. When Kezer inked a contract with teachers, he got the union to agree to increase the premium that employees pay, but in exchange the town will not try to join the state GIC until at least September 2011.
Though Newburyport Mayor Donna Holaday had not signed onto the coalition, she said she would support the ballot initiative if a compromise can't be reached with the unions.
While she understands the unions have fought hard for the benefits, Holaday said the benefits are "strangling" the city's budget, with buybacks, clothing allowances and other benefits that workers in the private sector do not have.
Holaday said Newburyport's employees are not paid at high levels compared to other cities and towns.
"Our salaries are not out of whack. In fact, they're low," she said.
Kezer and the coalition of mayors signed on to push for reform are aware they have a fight ahead of them in trying to push the law through the Legislature, and they received the first shot off the bow from Lt. Gov. Murray. Murray responded to their organized effort by suggesting mayors and town administrators look in the mirror when placing blame for their city's financial troubles.
"It wasn't a positive response," Kezer said of the chilly reception.
