A Clear Path to Cost-Cutting

The Boston Foundation issues a new report detailing how cities and towns could save millions in health care costs by joining the state's health plan system, called the Group Insurance Commission, according to a piece in The Boston Globe:

The foundation’s detailed study of four municipalities - Boston, Cambridge, Melrose, and Marshfield - illustrates how health care expenses are severely hampering communities across Massachusetts.

Boston, for example, could reduce its health insurance premiums this fiscal year by up to 17 percent, or $45 million, by joining the state’s Group Insurance Commission, the report finds. Melrose, which joined the GIC in July, will likely save $1.6 to $1.8 million annually, says the report, which the foundation will release today.

“The irrefutable point,’’ the report concludes, “is that there could be significant savings for cities and towns - in a time of severe fiscal challenges - if they were allowed to join the GIC apart from collective bargaining.’’