Massachusetts Implements Municipal Health Insurance Reform

Abstract

In July, 2011, Massachusetts enacted a municipal health insurance reform law. In Massachusetts each city and town negotiates and contracts for health benefits separately, while state employees are insured through the state Group Insurance Commission. Facing exorbitant health care costs and decreased revenues, some municipalities had resorted to laying off employees and diverting funds earmarked for public services in order to pay for health benefits. The purpose of the legislation is to provide municipalities with the tools to effectively manage escalating health care costs.