The Quincy canary

THE ESCALATION in healthcare costs is complicating municipal labor negotiations throughout Massachusetts to the point where it prompted a teacher's strike in Quincy. A statewide problem demands a statewide solution, but the compromise bill being considered by the Legislature threads too warily between the interests of local unions and the cities and towns.

The Quincy strike -- which was still under way as of yesterday evening -- is illegal under state law, and should be ended immediately. Still, the teachers have reason to be aggrieved. The city is offering them a 13 percent pay raise over four years, but then essentially takes back the increase by insisting that 20 percent of health premiums be deducted from their paychecks, a doubling of the current 10 percent. The increase would be phased in over two years. "I can't be making the same or less money in 2010 as I do now," said David Buckley, a middle school music teacher.

Like municipal leaders across the state, Quincy Mayor William Phelan can't keep asking the city's taxpayers to pay the same share of escalating healthcare costs, which in Quincy have almost doubled since 2002. Either insurance premiums moderate, or the teachers and other city employees have to assume more of the cost.

The problem is made worse by the fragmentation of local government in Massachusetts. Hundreds of unions negotiate with hundreds of cities and towns, an arrangement that precludes the economies of scale that helps the state holds down costs for its employees, who get their coverage through the Group Insurance Commission.

A bill before the Legislature would allow cities and towns to purchase insurance for their workers through the GIC if 70 percent of the unions agree. Such super-majorities would be hard to assemble. Many local employees are satisfied with their health insurance -- especially if, like the Quincy teachers, they are shielded from the full cost by generous municipal contributions. The bill as written is not likely to get local employees into the GIC system.

There was talk at the State House of lowering the approval threshold to 50 percent, but that's not going anywhere. The full Legislature will consider the original bill after it finishes work on the budget. The bill should pass as a first step, but lawmakers have to be prepared to revisit the subject next year if only a few municipalities are able to reach agreement with their unions to join the GIC.

Quincy can't wait for the GIC. The city needs to achieve a compromise that mandates a greater contribution from the teachers without the shock of the original proposal. But the old pattern of generous health benefits negotiated with little regard to cost has to be broken. When it comes to health insurance, localism is a barrier to the effective mitigation of a growing societal burden.