Mayor Asks For Change to Save Money on Health Insurance

Mayor Scott Galvin will ask the Woburn City Council on Tuesday to accept a local option that will allow the City to make changes to the health insurance plan design for city employees without engaging in collective bargaining.

Galvin said the local option will allow Woburn to make changes to co-pays, deductibles and tiering. This will not change employee contributions, which “would still be the subject to traditional bargaining,” said Galvin in a letter to the City Council.

“This the same way that plan design changes are implemented for every employee that works for the Commonwealth of Massachusetts,” he said.

The Massachusetts Health Care Reform that became law in 2011 “is one of the most beneficial tools afforded to cities and towns in decades, and has achieved substantial savings for communities and has helped preserve essential government jobs and services,” he said.

Gov. Deval Patrick’s office said that more than 260 communities and school districts are now part of the program and have saved more than $237 million on health insurance premiums in one year, according to Galvin.

Galvin estimates Woburn could save more than $1.5 million in the first year if the City Council approves the option.

The mayor will make a presentation to the City Council during Tuesday’s meeting. The City Council will not vote on the matter, but will refer the matter to a committee.