March 17, 2010
Lynch yearns for plan-design power:
Health-insurance costs for city employees critical to Lowell's future
Mar. 17--LOWELL -- It's a refrain that City Manager Bernie Lynch has been singing for years -- cities and towns need the same power the state has over the design of their employee health-insurance plans.
Lynch told the City Council last night that as the city faces another year of state-aid cuts, the latest figure which is about $4.4 million in school funding and $887,686 in general government aid, finding ways to cut the city's $40 million health-insurance bill is imperative.
Under state law, municipalities are required to secure a 100 percent union buy-in for changes to the offered health-insurance plans. The state, however, insures its employees through the Group Insurance Commission, with no collective bargaining, and with state employee unions required to make changes.
Lynch said the city could save $3 million to $5 million if it could eliminate the costly Master Medical indemnity option from its health-insurance offerings or if it joined the GIC.
However, under the current law, in order to join the GIC the city must secure a 70 percent buy-in from the unions. The United Teachers of Lowell, a union that constitutes more than 50 percent of the city's union members holds veto power.
"I would like the City Council to send a clear message to the delegation that the city needs plan-design powers," he said.
Councilor Edward "Bud" Caulfield suggested the Law Department draft a resolution for the council to do that.
In other business, the
council referred a motion by Patrick Murphy requesting that the council join other cities and towns in supporting the proposed updated Bottle Bill currently before the state Legislature, to the environmental subcommittee. The proposal would expand the state's current laws, adding a 5-cent deposit to bottles of sports drinks, coffee drinks, water, flavored waters and juices less than a gallon in size.
"It has been proven that putting a deposit on containers produces a recycling rate of 75 to 80 percent compared to 20 percent on those without a deposit," Murphy said, adding that what is not returned for recycling is expected to generate revenue of about $20 million, $10 million of which will be used for water- and sewer-rate relief and the remainder will be distributed to cities and towns to fund recycling programs.
Several councilors, including Caulfield and Joe Mendonca said, they could not support the Bottle Bill because it is just another tax on consumers.
"It is not a tax, it is a deposit," said Murphy. "People have the option to redeem it and the numbers are pretty clear."
"It is well intentioned, but personally I see it as another tax," said Mendonca. "The state is relying on people not returning the bottles to extend revenues."
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