Vote On Health Care Reform Law Put Off In Peabody, Mass.

Feb. 28--PEABODY -- Five of the city's 11 city councilors have been ruled ineligible to vote on whether to adopt municipal health care reform due to conflicts of interest.

That has led to cancellation of tonight's scheduled vote, because one of the remaining city councilors cannot be present.

All of the remaining six councilors -- a simple majority of the whole council -- would need to vote in favor of health reform in order for it to pass. However, Ward 2 Councilor Arthur Athas could not attend tonight's meeting due to a death in his family, leaving the council one short of a quorum.

"It certainly is a razor-thin vote. ... Whenever it gets that close, a lot of things can happen," Council President James Liacos said yesterday. "Personally, I'm hoping this (extra time) will give the unions and the mayor more time to negotiate this out. I don't want to see a vote on this."

The health reform law, passed by the state Legislature last summer, gives cities and towns much broader power in negotiating health benefits with city unions. Once adopted, if the city and unions cannot agree on health benefits, it allows the city to adopt the state Group Insurance Commission health plan -- the one used for state employees -- for city employees.

If Peabody were to go that route, taxpayers could save up to $4 million per year by shifting some health insurance costs onto employees in the form of higher copays and deductibles.

Peabody Mayor Ted Bettencourt said yesterday that if a deal can be worked out on a new health plan "with an appropriate level of savings," he would take adoption of the health reform law off the table. When pressed, he said the city would need to save between $2 million and $4 million annually to get a deal done.

The mayor has met with a union coalition three times this month trying to hash out a plan and avoid a vote on the legislation.

"Things have gone well ... but they have been pretty general discussions so far," Bettencourt said. "I do feel the unions understand there have to be changes, because what we have now is not sustainable."

Not able to vote

Four city councilors -- Rico Mello (Ward 3), Barry Sinewitz (Ward 6), and at-large members Thomas Gould and Michael Garabedian -- are ineligible to vote on whether to adopt the health reform act because all four take the city's health insurance themselves, and therefore have a conflict of interest. Councilor-at-large Anne Manning-Martin has been ruled ineligible to vote because her brother is a Peabody firefighter on the city's health plan.

"The state Ethics Commission has the ultimate say over this," said Michael Smerczynski, the city solicitor.

In Peabody, that leaves only six councilors who can vote: Arthur Athas, James Liacos, David Gravel, Barry Osborne, David Gamache and Robert Driscoll.

The conflict-of-interest law can be waived if so many councilors have a conflict that a simple majority cannot be formed to vote, as happened in Salem. Another way around the law is if at least 10 percent of the city population is enrolled in the city health care plan. At last count, 4,137 people are provided health care through the city of Peabody, less than 10 percent of the roughly 52,000 people.

Peabody's situation is not unique.

"Essentially, the vast majority of communities who have voted to accept the GIC have all experienced some kind of conflict," Smerczynski said. "It is almost unavoidable in larger cities."

Although the ruling leaves Bettencourt needing a unanimous vote from the six remaining councilors to pass the reform, he didn't seem worried yesterday.

"I feel very comfortable that the council will support me in my request," he said.

City Councilor David Gravel said he wasn't sure how the vote will go, but he will be supporting adoption, which would save the city millions of dollars.

During the last election, each of the city councilors said they would also support the reform. The union opposition, however, has been strong. About 100 union members came to show opposition at a council meeting this month where the law was first considered.

"Pressure or no pressure, you have to do what's right for the whole city," Gravel said. "Elections are based on what you say and what you do, and you have to go with what you believe in."

CONFLICTS OF INTEREST

Barry SinewitzAccepts health insurance

Rico MelloAccepts health insurance

Michael GarabedianAccepts health insurance

Thomas GouldAccepts health insurance

Anne Manning-MartinBrother is Peabody firefighter who accepts health insurance

CURRENT PEABODY HEALTH BENEFITS*

City contribution to premium85 percent

Employee contribution15 percent

CopaysPeabodyGIC

Office visit$10$15

Emergency room$50$100

Prescription drugs$10/$15/$30$10/$25/$50

* through June 30, 2012

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(c)2012 The Salem News (Beverly, Mass.)

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