As we reported in the January edition of the Voice, legislation now before the House Committee on Municipal and Regional Government would eliminate collective and coalition bargaining rights when it comes to local health insurance. Local officials claim that the current system, whereby benefits are negotiated with organized labor and, in some instances, retirees, is too cumbersome to meet current challenges.

With Boston Mayor Tom Menino leading the fight for relief, the Mass. Municipal Association has embarked on an all out lobbying effort to move a bill before the end of the 2010 session in July.

What Boston and other communities are seeking is a change in Chapter 32B (municipal health insurance law) that would allow a mayor or town manager to make unilateral changes in insurance benefits, without first bargaining. They point to the system used at the state level, where the state Group Insurance Commission (GIC) controls benefit levels and plan design.

While it is true that state employees and retirees do not bargain for health insurance benefits, state plan design is controlled by the 15-member GIC, with contribution rates set by the Legislature. Retiree and union representatives are members of the Commission, which then employs a professional staff to manage  daily operations.

With the possible exception of the City of Boston, most municipalities are ill equipped to take on the tasks performed by the GIC. As is the case with larger communities, the state is self insured, but contract with insurance carriers to administer the insurance benefits offered.

"We feel strongly that collective and coalition bargaining work well and should not be undermined by local officials, who are really seeking total control over health care decisions. Our members should have a right to negotiate over their benefits," said Association Legislative Liaison Shawn Duhamel. "This is going to be a really tough fight though, particularly in light of the continuing fiscal problems. The mayors want total control over their plans and are lobbying hard to get it."

Economy Hampers Bills

There are now less than six months remaining of formal business in the 2009-2010 Legislative Session. While the Association filed nineteen separate legislative proposals to begin the session in 2009, the severely depressed economy has significantly hampered progress.

With the exception of the non-contributory veterans tax break, the Association's legislative package is under the review of a single legislative committee - the Joint Committee on Public Service.

Chaired by Senator Tom McGee (D-Lynn) and Representative Bob Spellane (D-Worcester), Public Service had a very busy 2009. Both chairmen, as well as other members of their Committee, played prominent roles on the so-called Pension Reform Commission, which issued its report last fall.

Beyond that, the Committee held public hearings on over 900 separate bills last year. Most legislation pending before Public Service, including nearly all of the Association's bills, would increase or enhance pension or health insurance benefits if passed, which becomes an expensive proposition.

"We filed a very well thought out and realistic package of bills to start the session. Each of these proposals addresses a serious need or concern of our members," continued Duhamel. "As compelling as these issues are, we must deal with the economic realities that exist. "The fact is that the state is still facing a $3 billion deficit for FY11, after having to cut billions from the existing budget. We'd like nothing more than to pass new benefits for our members, but right now we still have to be concerned with defending health benefits and making sure the 2010 COLA is paid."