Mar. 11, 2010: Reducing health care costs

>> AS HEALTH-CARE COSTS
CONTINUE TO BALLOON A GROUP
OF ABOUT 20 MAYORS AND
MUNICIPAL LEADERS WANT AN
UPPER HAND.
CALLING THEMSELVES THE SAVE
OUR COMMUNITIES COALITION,
THE GROUP WANTS TO PRESENT A
BALLOT QUESTION IN 2012 THAT
WOULD GIVE THEM THE POWER TO
CHANGE HEALTH PLANS AND
BENEFITS WITHOUT UNION
NEGOTIATIONS.
THEY SAY HEALTH-CARE COSTS
ACCOUNT FOR AS MUCH AS 20%
OF THEIR BUDGET OF 146%-- UP
146% SINCE 2001.
JOINING ME NOW IS FITCHBURG
MAYOR LISA WONG AND NEW
BEDFORD MAYOR SCOTT LANG WHO
ARE BOTH PART OF THE
COALITION.
WELCOME TO BOTH OF YOU.
>> THANKS, HOW ARE YOU.
>> THANK YOU.
>> Rooney: I'M WONDERING
WHAT THE IMPETUS MUST HAVE
BEEN FOR THIS.
YOU MUST HAVE BEEN THINKING
ABOUT THIS FOR A WHILE.
WE HAD THE SIRS POINTING OUT
THAT CITYS AND DOWNS SIGNED
ON TO THE STATE'S
HEALTH-CARE PLAN SAVING
MILLIONS OF PEOPLE.
THEN THE BOSTON FOUNDATION
REPORT CAME OUT SAYING
EXACTLY THE SAME THING IS
THIS JUST THE ENCOURAGEMENT
YOU NEEDED TO GO AHEAD AND
TRY THIS.
>> I THINK WE'VE ALL BEEN
WORKING ON IT ON A LOCAL
LEVEL.
I KNOW MAYOR WONG HAS BEEN
WORKING ON IT.
I HAVE.
WE HAVE BEEN ABLE TO DRIVE
COSTS DOWN.
BUT THINK UNTIL WE WHERE
ABLE TO GET A REAL HANDLE ON
THE HEALTH INSURANCE COST
FOR THE MUNICIPALITIES, WE
WERE NOT GOING TO BE ABLE TO
PRESENT ANY KIND OF
SUSTAINABLE CITY GOVERNMENT.
>> I MEAN YOU KNOW IT IS
GOING TO UPSET THE UNIONS.
ARE YOU READY TO FORGE AHEAD
WITH THIS.
I MEAN YOU CAN EITHER HAVE
THE LEGISLATURE DO IT OR DO
IT THROUGH A BALLOT
INITIATIVE, THE WAY YOU ARE
DOING IT, WHICHEVER WAY IT
HAPPENS IT IS GOING TO UP
SET YOUR FIREMEN, YOUR
POLICE UNIONS, YOUR, SOME
OTHER MUNICIPAL WORKERS.
>> I THINK YOU WOULD BE
SURPRISED TO FIND THAT NOT
ALL UNIONS ARE AGAINST US.
FOR EXAMPLE IN THE CITY OF
FITCHBURG OUR FIRE AND
POLICE, WE SPENT $111
MILLION ON OUR BUDGET TEN
YEARS AGO TODAY OUR BUDGETS
ARE $111 MILLION.
OUR HEALTH INSURANCE BUDGET
WAS 4.8 MILLION THIS YEAR
IT'S 1 MILLION DOLLARS.
SO POLICE AND FIRE ARE VERY
WELL AWARE OF THAT, HEALTH
CARE IS CROWDING OUT THE
AMOUNT OF MONEY THAT WE'RE
SPENDING ON POLICE AND FIRE
BECAUSE WE'RE NOT SPENDING
IT ON THEM SO I KNOW IN
FITCHBURG WE'VE BEEN ABLE TO
WORK WITH THE UNIONS BUT
ONLY TO AN EXTENT.
WE HAVE WORKED WITH UNIONS
TO CHANGE COPAYS, AND ALSO
TO LOOK AT THE ELIMINATION
OF EXPENSIVE PLAN CALLED
MASTER MEDICAL.
BUT THAT TOOK A LOT OF WORK
BARGAINING WITH ALL 17
UNITS.
AND THIS BILL WOULD ALLOW US
TO HAVE IT BY RIGHT SO WE
CAN DO THIS ON A CONTINUOUS
BASIS AND MAKE SURE THAT WE
SAVE MONEY AND SPEND IT
WHERE WE NEED IT.
>> WHAT IS THE PERCENTAGE OF
THE BUDGET IN NEW BEDFORD.
THEISTICS ARE INCREDIBLE,
NEXT YEAR ALMOST $50 MILLION
AND YOUR BUDGET WILL BE LIKE
$250 MILLION.
>> RIGHT.
>> Rooney: THAT IS
UNBELIEVABLE.
>> WHAT IS HAPPENING BETWEEN
PENSION AND HEALTH CARE
WE'LL BE UP TO ABOUT 40% OF
OUR CITY BUDGET OF WHAT WE
RAISE LOCALLY.
SO IT IS NOT SUSTAINABLE.
BUT NEW BEDFORD WE GOT THE
UNIONS TOGETHER FOUR YEARS
AGO WHEN I FIRST WAS ELECTED
AND WE PUT OUR HEALTH
INSURANCE OUT TO BID.
AND WE HAVE SAVED A GREAT
DEAL OF MONEY.
WE HAVE A SECTION 19
COMMITTEE THAT MEETS AND
SETS UP PLAN DESIGN SO THAT
WE ACTUALLY HAVE BEEN ABLE
TO SAVE MONEY BY WAY OF
COMPETITION.
AND BY WAY OF PUTTING
TOGETHER HEALTH-CARE PLANS
THAT MORE CLOSELY RESEMBLE
YOUR AVERAGE DAY-TO-DAY
EXPERIENCE IN THE PRIVATE
SECTOR THAN IN THE PUBLIC
SECTOR.
I THINK THAT'S WHAT WE ARE
ALL TRYING TO DO ON THE
LOCAL LEVEL.
I THINK IF EVERYONE SITS
DOWN AT THE TABLE, IF UNIONS
BEGIN TO LEAD ON THIS ISSUES,
I THINK WE'LL HAVE HEALTH
TINS THAT IS EXTREMELY FAIR
FOR EVERYONE AND AN AT AN
AFFORDABLE PRICE AM BUT
PEOPLE CONTINUE TO SAY THEY
WANT A $5 COPAY OR $10 COPAY
IT IS GOING TO HIT THE WALL.
>> HAVE YOU LOOKED AT WHAT
IT IS ABOUT HEALTH CARE THAT
IS GOING UP EVERY YEAR?
I MEAN DID YOUR SALARY GO UP
43%, DID YOURS.
DID ANYTHING, COST-OF-LIVING
DIDN'T GO UP THAT MUCH.
WHAT LINE ITEMS IS IT?
I MEAN IS THIS JUST THE
INSURANCE COMPANIES JACKING
UP THEIR RATES, WHAT IS IT
THAT IS GOING UP.
>> I THINK WHAT IS HAPPENING
IS THAT A LOT OF
MUNICIPALITIES HAVE PREMIUM
PLANS.
SO WE HAVE THIS ONE-SIZE
FITS ALL.
AND THESE PLANS ARE
SPECIFICALLY WRITTEN INTO
OUR UNION CONTRACTS SO IF WE
WANTED TO CHANGE PLANS,
LET'S SAY WE WANTED TO GO TO
A PLAN THAT WAS EVEN BETTER,
AND HAD MORE FLEXIBILITY AND
COST LESS, SO COSTS THE
UNION LESS, THE EMPLOYEES
LESS, THE TAXPAYERS LESS AND
CITY LESS, WE STILL HAVE TO
NEGOTIATE WITH EACH
INDIVIDUAL UNION.
AND OFTENTIMES PEOPLE DON'T
UNDERSTAND AND THEY THINK
THAT CHANGE IS BAD.
AND THAT IS WHY IT MAKES IT
SO DIFFICULT TO HAVE TO MAKE
ANY CHANGES EVEN IF IT IS
FOR BOTH OUR BENEFITS.
>> Rooney: BUT RIGHT NOW IF
YOU LOOKED AT WHAT YOUR
HEALTH-CARE PLAN IS AND YOU
SEE THAT NEXT YEAR IT'S
GOING TO GO UP WHATEVER IT
IS, 38%, WHAT IS IT THAT IS
GOING UP 38%.
WHY DOES IT HAVE TO GO UP
THAT MUCH.
CAN'T YOU SAY NO, I'M GOING
TO GIVE YOU THE SAME
INCREASE I GOT LAST YEAR, 0.
>> THE PLANS THAT WE HAVE,
WE'RE SELF-INSURANCED SO
IT'S BASED ON WHAT PEOPLE
ARE USING.
AND WE'RE USING MORE AND
MORE EXPENSIVE MEDICATION,
AND THE PLANS COVER IT.
THE COPAYS ARE STILL VERY
LITTLE AND THE PLANS HAVE TO
COVER THE REST.
SO OFTENTIMES THE EMPLOYEES
DON'T SEE THE EXTENT TO
WHICH THE MEDICAL CARE THAT
THEY CHOOSE TO HAVE BURDENS
THE ENTIRE SYSTEM.
AND IT REALLY JUST MAKES THE
PRICE GO UP EVERY YEAR.
>> WE SHOULD MAKE THIS
CLEAR.
IF THIS GETS ON THE BALLOT,
THIS 20 CITIES AND TOWNS
AROUND THE STATE THAT HAVE
SIGNED ON TO THIS
COMPETITION, EVERYBODY WOULD
GET TO VOTE ON IT.
NOT JUST THE CITIES AND
TOWNS.
>> THAT'S RIGHT.
>> WE HAVE HEARD FROM MAYORS
IN THE PAST FEW DAYS SAYING
THAT THEY WANT TO GET
INVOLVED IN THIS AS WELL.
I THINK WHAT IT COMES DOWN
TO IS AN AWFUL LOT OF PEOPLE
CARRY INSURANCE THAT THEY
REALLY DON'T NEED.
AND THEY ARE PAYING A MUCH
HIGHER PREMIUM.
AND WHAT HAPPENS IN THIS
CASE IS NOT ONLY DO THEY PAY
IT BUT THE TAXPAYER PAYS IT.
SO I THINK SOME EASY CASE,
THE UNIONS GETTING INVOLVED
IN THIS, IN A VERY, VERY
PROACTIVE WAY.
I THINK WE CAN HELP RESOLVE
THIS PROBLEM.
PLUS YOU NEED COMPETITION.
AND YOU ALSO HAVE TO HAVE A
WIDE ARRAY OF OPTION PLANS
AVAILABLE SO THAT IF I WANT
TO GO WITH A CAT TROPHIC
PLAN I CAN DO IT.
I WILL SAVE MONEY N MY
PAYCHECK EACH WEEK IT WILL
ALSO SAVE THE TAXPAYERS
MONEY.
SO HEALTH CARE IS NOT A
ONE-SIZE FITS ALL.
AND WITHOUT COMPETITION, THE
RATES CONTINUE TO SKYROCKET.
>> YOU HAVE THOUGHT, YOU
MUST HAVE, ABOUT GOING,
BECAUSE EVEN IF THIS PASSES
ON A REFERENDUM, FIRST OF
ALL IT WOULDN'T BE ON
BALANCE WITH 2011.
AND THINGS DON'T GO INTO
EFFECT UNTIL THE NEXT YEAR.
SO YOU ARE STILL TALKINGIERS
AWAY WATCH.
ABOUT SIMPLY COMPETITIONING
THE LEGISLATURE TO MAKE THIS
HAPPEN.
THEY HAVE THE POWER TO TAKE
A VOTE SO ALL OF YOU GO
WHATEVER YOU WANT WITH YOUR
HEALTH-CARE PLANS FOR YOUR
CITIES AND TOWNS.
>> WE'VE ASKED THE
LEGISLATURE TO MEET WITH US
TO CITY DOWN AND TRY AND
COME UP WITH A BILL.
MEET WITH US, THE UNIONS,
GOVERNOR PATRICK'S
ADMINISTRATION, TO COME UP
WITH A BILL THAT WILL BEGIN
TO DRIVE THE COST DOWN.
IF WE DON'T WE ARE GOING TO
BE LAYING PEOPLE TO OFF TO
PAY FOR BENEFITS FOR PEOPLE
THAT ARE LEFT AND IN THE
LONG RUN IF YOU COMBINE THAT
WITH UNFUNDED PENSION
REQUIREMENTS THAT DON'T MAKE
ANY SENSE QUITE FRANKLY,
THAT'S A WHOLE OTHER SHO,
YOU ARE GOING TO HAVE VERY
FEW PEOPLE PROVIDING
SERVICES FOR PEOPLE.
>> WHAT DO THEY SAY, THEY
DON'T WANT TO UPSET THE
UNIONS.
THEY ARE ALL RUNNING FOR
RE-ELECTION.
>> THEY ARE GOING TO SIT
DOWN AND TALK WITH US IN
GOOD FAITH.
I'VE GOT CONFIDENCE.
>> WHICH IS GOING HAPPEN
FIRST, THE COMPETITION OR
THE VOTE IN THE LEGISLATURE?
>> I THINK THE CONVERSATION
NEEDS FOR IT TO HEAD.
AND IF PEOPLE REALIZE HOW
IMPORTANT THIS IS AND THIS
COULD BE A WIN-WIN THEN WE
WILL FIND THE QUICKEST
METHOD POSSIBLE.
BUT THIS IS AN IMPORTANT
DISCUSSION TO HAVE WITH THE
CITIZENS, WITH THE
TAXPAYERS.
AND THAT'S SOMETHING THAT
THE BALLOT INITIATIVE ALLOWS
THIS IS A TAXPAYER MONEY
THAT WE ARE TALKING ABOUT
AND A VERY IMPORTANT ISSUE
THAT 9 MAYORS ARE REALLY THE
FRONT LINE.
WE ARE THE ONES THAT PEOPLE
COME TO BECAUSE WE HAVE THE
EMPLOYEES, WE ARE THE ONES
PAYING OUT THESE BENEFITS.
>> SO HOW QUICKLY WOULD THIS
LIKELY HAPPEN.
>> WELL, WE HOPE TO SEE THE
LEGISLATURE.
>> 10,000.
>> THE EARLIEST WE HAVE A
COMPETITION ON WOULD
BE-- BUT WE EXPECT TO SEE
THE LEGISLATURE IN THE NEXT
FEW WEEKS.
WE ALL TALKED TO OUR LOCAL
DELEGATION BUT WE HOPE TO
GET TOGETHER WITH
LEADERSHIP.
>> THERE IS DEFINITELY A
POPULIST UPRISE ON THIS
ISSUE, I THINK.
MAY ACTUALLY TRACH SOME
MENTION AT THIS TIME.
>> WE'RE HOPEFUL.
>> MAYOR LISA WONG, MAYOR
SCOTT LANG, THANK YOU FOR
BEING HERE TONIGHT.
WHEN WE CONTINUE AN UX
CLIFF-- EXCLUSIVE FIRST LOOK
AT THE MSA NEW ADDITION.