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City of Boston

In City Council

Order of Councillors and Arroyo

Whereas: The City of Boston’s FY2007 budget totals $2.14 billion, of which

health insurance comprises $246 million of the budget, a 10% increase over the

FY2006 budget; and

WHEREAS: A major part of the City of Boston’s budget, health insurance has

risen in crisis proportions: 10% this fiscal year, 66.9% since FY02 and 73%

since FY01; and

WHEREAS: Approximately 28,565 individuals participate in the City of Boston’

s Health Insurance programs of which active employees comprise 55% of the

total with the remaining 45% retirees; and

WHEREAS: Although some costs relative to Health Insurance have risen over

the last 7 fiscal years and some measures have been taken to reduce costs, such

as removing some health insurance carriers from selection and negotiating

with current insurance carriers for reduction in cost, a 73% increase in the

budget since FY2001 is staggering and creates a tremendous impact on the

city’s

ability to provide other services to Boston; and

WHEREAS: With the exception of some possible plan design changes,

reimbursement to the city for Medicare Part D from the Federal Government, and

continuing to use the leverage that the city possesses because of the size of

the

group, most other attempts to possibly reduce health insurance costs to the

city

would require changes in Massachusetts General Law; and

WHEREAS: Any increase in state funding this year will surely be obliterated

by Health Insurance increases and the City of Boston must do everything in

its power to contain these costs without sacrificing the quality of health care

for its employees and retirees; and

WHEREAS: It was revealed at the Health Insurance Budget hearing that our

Health Insurance carriers may be tracking illnesses in an attempt to keep

employees well and assist those who have chronic illnesses to remain stable;

and

WHEREAS: Over the years, the City of Boston has been informed of concerns

registered by employees who maintain that they are experiencing illnesses in

their buildings believed by be caused by the buildings’ conditions, and

WHEREAS: Several years ago, hundreds of employees notified the Mayor and

City Council about “Sick Building†illnesses and reports have been given

about

possible “clusters†of illnesses in other City of Boston buildings; and

WHEREAS: Without violating privacy laws surrounding health care, the City of

Boston must be proactive in preventing illnesses that may be in its control

which could potentially reduce the cost of health insurance to the taxpayers

of the City of Boston; THEREFORE BE IT

ORDERED: That that Boston City Council hold a hearing, inviting the Boston

Health Commission, the City’s health insurance carriers and all other

appropriate departments to see what can possibly be done do to provide healthy

working environments for our employees which could potentially help to reduce

this

major portion of the budget.

Filed for June 7, 2006 City Council Meeting

Docket No. 0738