Impact of health insurance reform felt statewide

As of mid-February, 57 communities across the state had adopted the Municipal Health Insurance Reform Act, and 15 had completed negotiations with employee unions within the allotted 30-day period.

So far, no community has failed to reach an agreement with its Public Employee Committee on modifications to health insurance plans.

Of the 15 communities that have completed negotiations under the law, seven joined the state’s Group Insurance Commission in January or will be joining in July, and eight made changes to their current health insurance plans.

According to the Patrick administration, the 13 communities that had completed their negotiations by the end of January will collectively reduce insurance costs by $30 million in the first year, with half of the savings being realized by municipalities and the rest returned to employees in the form of lower premiums and mitigation plans.

The enactment of the reform law last summer has also provided leverage for communities that chose to negotiate health plan changes through traditional collective bargaining, without adopting the process outlined in the law.

The Massachusetts Taxpayers Foundation reports that cities and towns are on pace to far exceed the initial estimate of $100 million in first year savings.