Friday, April 21, 2006
In the fiscal year 2007, which begins July 1, Braintree's total health insurance tends to increase the cost by 10 percent, according to Finance Director Brian Connolly.
"When broken out by plan, the rate increases vary," he wrote in an April 6 memorandum to Interim Executive Secretary Susan Kay. Of the 1,044 employees on Braintree's payroll, 878 (or 84 percent) which are currently enrolled in a town health care plan at a projected cost of $5.9 million in the upcoming fiscal year
"Generally speaking, as the cost of health insurance rises, plan enrollees search for the most affordable option among the health plan offerings," Connolly explained. He brought out that Braintree is experiencing "a significant shift away" from the town's most expensive offering, Master Medical, to other, less expensive plans, most notably the Harvard Community Health Plan (HCHP).
"Even with this proposed rate increase to the HCHP, it remains the most affordable option among the offerings," Connolly painted a downbeat picture of the future.
"The cost of insurance is expected to continue climbing at a double digit pace for many years to come," he wrote. Connolly believes that Braintree must take a close look at the issues that comprise its health insurance costs, such as co-pays, deductibles, and medication tiers,.
"This is both a revenue and expense discussion that we, union and management, should not delay in scheduling," he concluded. "Working collaboratively with all unions, we can work toward more favorable insurance offerings that benefit both the town and its employees."
Accompanied by Peter Kenny of Cook & Company, Inc. of Marshfield, the town's health insurance consultant, Connolly discussed his memorandum during the April 10 meeting of the board of selectmen.
posted by kanth
@ 4:17 AM
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