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| Beacon Hill (WMassP&I) |
Yesterday, the Massachusetts House of Representatives effectively voted to give cities and towns the unilateral right to set deductibles and co-pays for their employees health insurance. Additionally, communities would no longer required to seek public employee approval to transfer insurance to the state's Group Insurance Commission (GIC). The 111-42 vote surprised organized labor, while drawing caution from the Senate and Governor Deval Patrick.
The effort to allow communities to join the GIC has been building for years. It has been consistently road blocked by the public employee unions, largely without explanation. That the legislature has decided to grant this right over the objection of the unions is not really the news. While the unions still oppose it, in all likelihood, they knew it was never an important loss to them.
By way of information, Springfield joined the GIC during the Control Board's tenure. When asked what the deductible/co-pay provision's impact would be on Springfield's budget, the office of Mayor Domenic Sarno had no comment.
By way of information, Springfield joined the GIC during the Control Board's tenure. When asked what the deductible/co-pay provision's impact would be on Springfield's budget, the office of Mayor Domenic Sarno had no comment.
What is more striking is the ability to set deductibles and co-pays unilaterally. Well, technically it is not unilaterally. Under the amendment, which can be read here, municipalities and other government bodies would call the affected public employee reps together and begin negotiating. However, after 30 days, if no agreement is made the employer's offer wins. Notably, none of this amendment takes effect unless the governing body like a city council or town meeting "accepts" it as is the language of such local administrative laws.
| Speaker DeLeo (WBUR) |
Unions are screaming that this is like Wisconsin or Ohio. House Speaker Robert DeLeo contends that this is a necessary tool to save cities and towns during yet another tough fiscal crisis and that this is exactly the same rights the commonwealth has with its employees. Frankly, however, neither of them are entirely right.
The unions are right that the ability of municipalities to set their own rates is like what has happened in Ohio. That state's SB 5, among its many draconian provisions, essentially forces unions to accept the local community's first offer if an impasse ensues. However, there are some important caveats in the Massachusetts bill. The unilateralism only appears if the community joins the GIC. Realistically, only a few communities gain anything by NOT joining, but still. Additionally, unlike SB 5 in Ohio, virtually all of labor's rights to bargain is intact.
