ACA at the Table in Boston Union Talks

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ACA at the Table in Boston Union Talks
Calendar16 December 2014

Here’s a report from the field on how health care reform is serving as a catalyst for change. It’s also a reminder that not all reform is federal reform. In Massachusetts (the state credited with piloting the ACA), a law was passed in 2011 that gave towns and cities the ability to move municipal employees into the state employee insurance program, which was generally less expensive than municipal plans. In Boston, this law motivated the city’s union workers to agree to changes in their own health plans that will save $45 million over the next five years. The article also credits the ACA’s “Cadillac tax” as being a factor in the negotiations. The fact that the city had to worry about hitting the cost threshold made clear how expensive the plans offered to Boston employees have been. As the author states: “The point of the Cadillac tax was to create an incentive to control costs, and the city’s agreement provides an example of how it’s working in practice.”

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