Public workers lobby to block Baker push on premiums
State employees hoping for legislative support to block state health insurance savings proposed by Gov. Charlie Baker visited the State House Thursday where one top union official compared the governor's plan to a tax.
Baker's plan, part of a $38.1 billion budget proposal under review by lawmakers, would adjust upwards the percentage of health insurance premiums paid by state workers hired before July 1, 2003. Those workers pay 20 percent of their monthly health insurance premium, while workers hired later pay 25 percent, according to Baker's budget, which would make all employees contribute 25 percent of the premium cost.
"He didn't want to raise taxes," Massachusetts AFL-CIO President Steven Tolman told the News Service. "Well what do you think this is?"
Tolman said "state employees have taken it on the chin in several different ways," and said state workers have not shared in the state's "prosperity."
Baker has highlighted over-spending as a driver of what he has projected as a $1.8 billion deficit in the fiscal 2016 budget.
The Group Insurance Commission, which provides insurance for state and municipal employees, ran a shortfall this year and received a $190 million influx to balance its books. GIC Executive Director Dolores Mitchell has said lawmakers regularly underfund the state agency, which released guidance on upcoming increases to co-payments for hospital visits and prescriptions.
"These were not easy decisions and they will affect all of us who work for the state and local communities," the insurance commission wrote on its website.
Baker spokesman Tim Buckley said the governor's budget would bring state workers' health premium payments in line with the private sector.
"The administration is pleased to propose a budget that invests in priorities like public education without raising taxes despite the $1.8 billion deficit and feels leveling the playing field for GIC contributions to bring the system in line with the private sector is fiscally responsible," Buckley said in a statement.
Senate Majority Whip Anthony Petruccelli, an East Boston Democrat, said he is unlikely to support the governor's proposal and Sen. Jennifer Flanagan, a Leominster Democrat, said she is also inclined to oppose the idea.
"This has been an issue that has been taken up almost year after year," Flanagan told the News Service. She said, "Certainly health care is an important part of everyone's budget and something that I think is a basic necessity for people and their families."
The Group Insurance Commission would receive a total of about $1.9 billion under Baker's budget. According to the AFL-CIO the cost-shift proposed by Baker combined with increases to co-pays and deductibles will cost employees $160 million collectively and many families will see health costs go up $1,500 next year.
A Republican working with two chambers of the Legislature dominated by Democrats, Baker has so far proven effective at pushing through legislation. Lawmakers passed his proposals to fix a midyear budget gap and shore up depleted state accounts, and a Baker initiative to offer early retirement to executive branch employees cleared the House unanimously.
The AFL-CIO recommends bringing all employee contribution down to 20 percent of the premium, which Tolman said would cost about $40 million.
"We've done reforms in our retirement. We have done reforms in our health care. We've done reforms in transportation and all different agencies, and most importantly we have not shared in the prosperity," Tolman said. He said teachers, scientists and machinists were among the employees lobbying Thursday.
Professional Firefighters of Massachusetts President Ed Kelly said unlike state employees, municipal unions negotiate their health care plans.
In a statement, National Association of Government Employees National President David Holway said, "I am heartened by the large crowd of public employees that rallied at the State House this morning." He added, "Today is the first day of a 90 day fight to get some equity and respect for state employees."
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