Health care plan at issue

The city is preparing to begin negotiations with its unions on the employee health care plan. The City Council recently approved Mayor Carlo DeMaria’s request that Everett accept a new state law that allows cities and towns to modify the designs of their health care plans or to transfer their employees to the Group Insurance Commission system following an expedited bargaining period. Under the new law, if no agreement is reached after 30 days of bargaining between the municipality and a union committee, the matter is referred to a three-person review panel. The panel is required to approve the design changes if it determines the benefits are comparable with the GIC, or to approve the community’s transfer to the GIC if the community can show the savings would be at least 5 percent greater than its own health plan. Everett’s insurance consultant has advised the city that it would not achieve the 5 percent savings threshold by joining the GIC, so the city will be seeking a redesign of its health plan. The city is forming a committee that will represent unions in the talks. Everett officials estimate savings of $1.2 million to $1.7 million annually through changes. - John Laidler