A Vision for Boston:
Questions for the 2009 Mayoral Candidates

Day 7: Health insurance costs

What steps would you take to further control Boston's health insurance costs for active employees and retirees?

Response from Mayor Menino:

The City is working to minimize the impact of increasing health care costs. We will keep fighting for changes that lower costs immediately and help us manage our long-term liabilities.

Lowering Short-Term Costs

We are advocating for health insurance changes because no employer can sustain theannual double-digit increases demanded by the health care industry. We will continue aggressive negotiations with insurance providers. This, together with increased premium cost-sharing negotiated with unions, saved nearly $10 million in FY10.

Maximizing Federal Benefits

The City has enrolled the majority of eligible retirees in Medicare, but I am against introducing confusing changes to our most vulnerable seniors. Instead, I am asking the City Council to adopt a provision that will require all future retirees to enroll in Medicare.

Managing Long-Term Liabilities

Well before other municipalities, the City understood the extent of its growing long-term liability associated with OPEB and the importance of these benefits to retirees. We began setting aside funds two years ago, based on a prudent policy to assure payment of these liabilities. We will continue to responsibly address this issue.