Sunday, May 13, 2007

Massachusetts Health costs soar, squeeze localities

The Boston Globe reports:
Health care spending for Massachusetts communities has nearly doubled since 2001, squeezing town budgets and forcing cutbacks in public safety and government services and leading to calls for property tax increases.

Employee healthcare costs in cities and towns shot up about 85 percent , from an average $2.5 million to $4.7 million, from 2001 to 2006 , according to a Globe analysis of budgets from 324 communities , using data from the Massachusetts Department of Revenue .

In Weston, healthcare costs are up more than 120 percent, a major contributor to the town's decision to seek a $1.1 million general override from voters last year. In Amesbury, healthcare costs more than doubled, to $4.9 million, and the town has held off on filling five to 10 jobs. In Fall River, costs have nearly doubled, to $32.7 million, and the city has at least 10 percent fewer staff members than it had in 2002.

Meanwhile, Stoneham has seen health costs soar 130 percent , to about $6 million , since 2001, said Ronald J. Florino, the town accountant. The increases each year total between $500,000 and $1 million, "which pretty much wipes out all our new revenue each year," he said.
Maybe government workers shouldn't be allowed to get health care at work.