LANESBOROUGH, Mass. — Town officials are looking to increase the percentage retirees pay in health care as a way to save the town money.
The Board of Selectmen peppered attorney Adam Dupere with questions Monday night about Supreme Court rulings that give municipalities the ability to change the split without renegotiations or a vote at town meeting.
Dupere said he felt it was clear that the town have the ability to change the percentage with just a public hearing and vote of the Board of Selectmen. He said likely there'd be a challenge by the unions but it'd be a challenge he doesn't believe would hold up in court.
The only rule surrounding the retiree health insurance would be that the town's percentage is above 50 percent. Currently, Lanesborough pays 85 percent of retiree health care costs.
Town Manager Paul Sieloff says Berkshire Health Group's rates for the Medex program — a supplement to Medicare — is decreasing significantly this year and retirees are expected to see a big drop in the premiums. Now, Sieloff said, is the time to raise the percentage, which will ultimately see financial benefits down the road.
"We could literally drop it from 85 percent to 80 and they wouldn't know the difference because of the savings coming," Sieloff said.
He says the town pays some $350,000 for retiree health care which, depending on the new split, could be reduced by a third.
"That would be spread among 80 retirees, $1,000 year, $100 a month," Sieloff said.
About four of five of the town's retirees would likely be exempt from the change, Sieloff said, because at one point town meeting voted that anyone who retired before 1993 could keep the 90/10 split which was in existence then. There are only a few retirees from that time frame.
The plan sounds like a good one to Finance Committee member Ray Jones, who spoke during the public comment section to say it is the "responsibility" of the town's leaders to drop the percent as low as possible to cut the cost from the town budget.
"I absolutely believe there is no other choice but the vote to reduce all of the retirees health insurance to 50 percent," Jones said. "We have to reduce our costs dramatically and this is one way to do that."
Selectman Henry "Hank" Sayers, however, added that the change will impact all retirees and not just retired teachers, whom Jones had noted the salaries of when he addressed the board.
But, it isn't just about cutting the budget. The Selectmen are also looking to create an economic development committee, which would be established to assist developers and businesses to move to or expand in the area.
Chairman John Goerlach envisions the committee meeting with owners of properties such as Donnybrook Golf Course or Vacation Village and help them navigate and realize development on those lands.
Selectman Robert Ericson said the town often "throws roadblocks" in front of a business instead of assisting. The committee would also help to smooth out those hiccups.
"Are we our own worst enemy in some cases?" he said.
Sayers asked the town manager to get in touch with Berkshire Regional Planning Commission or Williams College about creating a report for the town that could help guide the committee.
