Over 40 Massachusetts communities have already taken advantage of a new state law to reform the municipal health care system.
The law gives cities and towns more flexibility in designing employee health care plans, and allows them to join the state's Group Insurance Commission.
Geoff Beckwith, of the Massachusetts Municipal Association, says the savings to communities are significant.
"Closer to a million in Gardner a year. For the city of Somerville, the annualized savings [are] over $7 million, I believe."
Beckwith adds that some communities have to wait until current contracts expire.
"I believe the vast majority of cities and towns will be in position to use this legislation this year, in this current fiscal year, or next fiscal year," Beckwith said.
Beckwith expects the total savings to eventually reach $100 million per year for cities and towns statewide.
This program aired on January 2, 2012. The audio for this program is not available.