Afternoon Edition: Municipal Health Insurance Costs an Issue

THE COSTS ARE NOT HEALTHY: Stoughton is spending more than 11 million dollars a year on health insurance for employees and retirees, according to information revealed this week at the Selectmen's meeting.  There are 577 active employees townwide, and 286 retired municipal employees. 

In addition, the retired teachers--who are all in the G.I.C. (Group Insurance Commission)--have their health plan costs (a total of two-plus million dollars) deducted directly from the town's cherry sheets, so those costs are "invisible." 

Town Treasurer Tom Rorrie said that the National Healthcare Reform (a/k/a Obamacare) could have "a severe impact on the budget. The potential for added costs is enormous. A 22 year old, out of college with a wife and family, is currently ineligible to be on their parent's plan. When the new bill kicks in [July 1, 2011], they can stay on the plan until 26.  We'd have to cover them all." 

Ginger Hastings of Group Benefit Strategies, a consultant to the town, said for example, that office visits (which are currently only $5 for town employees) would be considered "wellness visits" once a year with doctors, dentists, eye doctors, etc. and would be at no charge. Lifetime limits now in effect would be KO'd by Obamacare. 

"There has to be give someplace. Changes must be made," Hastings said.

The Selectmen's budget that was sent to the Finance Committee includes a 12% increase for health care from 2011 to 2012. According to Hastings, "It looks like it will be closer to a 5% increase, according to my numbers. But, we have a very active Insurance Advisory Committee in Stoughton, and they seem open to alternatives.  For instance, if co-pays were increased from $5 to $15, and other changes are implemented in new designer plans, that are closer to reality, then no increases would have to be implemented after July 1." 

Stoughton self-pays its costs.  If Hastings is correct in her 5% projection, rather than the one of 12% that Town Manager Frank Crimmins included in the budget, then $500,000 more would be available to supplement all the departments that have suffered cuts.  Since all unions are up for negotiations, look for the selectmen--and the school committee--to look at changes to health insurance. Whether it's an attempt to get employees into the G.I.C., or efforts to raise deductibles (while trying to slightly decrease premiums), there's some heavy negotiating ahead.

DECA LOOKING TO RAISE FUNDS:  Mr. Eddie Rodrigues, of the Business/Information Technology Department at , who is advisor to the DECA progam there, is looking for some financial help from the community. They have seven students who will be traveling to Orlando, from April 29 to May 4, to compete in the national competition.

"This is a great opportunity for these kids who will be competing against kids from other states and countries in business competition," Rodrigues said.

The seven SHS students qualified after district and state competition. They all placed in the top four in the state, or were elected to State posts.

Rodrigues tells About Town, "I would hate for this opportunity to be wasted because we don't have the money. At this conference, our kids could receive scholarship and internship opportunities on the spot. We will be "canning" outside of Roche Bros. on Saturday and Sunday, from 10 a.m. to 4 p.m. this weekend. Any little bit helps and if people wish to donate any money they can send cash or money order to my attention at Stoughton High School, 232 Pearl St. Stoughton, MA 02072. Thanks for your help." 

Questions on how you can help? Email e_rodrigues@stoughtonschools.org.