Dedham, Unions Reach Health Care Deal

The Town of Dedham and town employees reached a new deal on health benefits that officials say will save the town $1.7 million.

The state’s Health Insurance Reform Act, passed in 2011, opened the door for towns to work with unions to cut back health care costs.

“People recognize that it’s a nice step in controlling something that became uncontrollable,” said selectman Michael Butler.

Under the new insurance plans, employees will pay lower monthly premiums, but require higher co-pays.

Approximately $484,000 of the first year savings will be devoted to a Health Reimbursement Account established to fund some of the increases in employees’ out-of-pocket costs in the initial years of the new program, according to a statement released by the town.

The town will use the remaining savings to pay down Dedham’s liability on health insurance for retirees.

Employees will be able to choose between Rate Saver Plans from a number of providers including Blue Cross/Blue Shield, Tufts, Harvard Community Health and Fallon Community Health.

The changes take effect July 1, and will impact all active employees eligible for health care coverage including school employees and retired employees under the age of 65.

“This is a milestone agreement for the town and its employees. The results of this work further the long-term goals of the town’s finances. The agreement required both the commitment and cooperation by all and was achieved under strict time constraints as prescribed by the legislation,” selectman Jim MacDonald said in a statement.