Insurance group drawing few takers
Despite widespread interest when it was unveiled a year ago, the Group Insurance Commission has attracted just three local entities so far, and only a relative handful of agencies statewide.
But backers of the insurance measure, designed to help financially strapped communities tamp down budget-busting healthcare costs, are still hopeful it will catch on.
Towns such as Braintree, Milton, Randolph, Stoughton, and Weymouth are in various stages of either negotiating with unions or studying the issue, with an eye toward joining, according to Joel Barrera, a project director for the Metropolitan Area Planning Council, which has taken a leading role in promoting the plan.
The commission, a quasi-independent organization, has managed to control costs better than individual communities because its size gives it financial leverage and it has flexibility in setting such things as copays. It held health cost increases for members to a relatively modest 54 percent between 2003 and 2007, while the average increase for communities was 85 percent.
It was thought that towns would welcome the chance to join the group, using the savings to bolster other parts of their budgets.
But before a municipality can join, 70 percent of its union membership must agree, which many see as a major hurdle. Towns must enroll by Oct. 1 for entry into the plan on the following July 1.
Statewide, 12 communities, school districts, or agencies belong.
Locally, the town of Holbrook, the Old Colony Planning Council of Brockton, and the Southeastern Regional Planning & Economic Development District of Taunton are members.
So far so good in Holbrook, where the town estimates it will save $212,000 this year and $300,000 next, based on historical increases, said Michael D. Yunits, town administrator. Healthcare costs this fiscal year will be about $2.8 million, in a total budget of $33.5 million.
Some employees will save even more, close to 60 percent, although copays jumped from $5 to $20 to $25, and there is a different insurer now, Yunits said. Employees officially started on the plan July 1.
Stephen C. Smith, executive director of the planning agency, said costs are almost exactly the same so far, although under the old plan, the agency had anticipated a big increase in January. It was more interested in joining because the Group Insurance Commission's large size keeps rate hikes more stable, he said. While some of his employees are paying less, they also lost some benefits, such as life insurance and disability insurance.
Other towns are exploring whether to join. Stoughton has held informational meetings with employees. In Randolph, employees have formed a committee to begin negotiating with the town, said executive secretary David C. Murphy.
"We're struggling with increased costs and are looking for ways to handle it," Murphy said. Healthcare costs consume about $6 million of the town's $70 million budget.
Milton Selectman John M. Shields said the unions and the town are far apart from a deal, although they are still talking.
Barrera expected more communities to join as the deadline nears. "There is strong interest, but we are in the slogging phase of educating people about a new law and a new process," said Barrera. "Things won't become clearer until October."
"We've had lots of inquiries and lots of requests for information and heard lots of rumors," said Dolores L. Mitchell, the executive director of the commission, which covers about 300,000 people.
There have been about 25 serious inquiries from communities and other groups, said Danielle Chaplick, the municipal coordinator for the organization.
Healthcare costs on average eat up close to 10 percent of municipal budgets, and have been rising at double-digits for years.
Matt Carroll can be reached at mcarroll@globe.com. 
