Peabody lands health care award

PEABODY – The city is one of six groups throughout the state – five of which are municipalities – to receive an “innovation award” from Blue Cross Blue Shield of Massachusetts for its changes in city employee health insurance plan offerings.Peabody’s honor of being the Plan Design and Wellness Champion also includes a $5,000 award to be used to further develop health and wellness for city employees.”The city of Peabody has been recognized for our initiatives to reduce health care costs realizing savings of more than $1 million,” Mayor Michael Bonfanti said. “We have negotiated and made substantive plan changes, changed the percentage of plan contributions and instituted employee wellness programs.”In 2008, the city council appointed a committee to investigate the rising trend in the cost of health insurance for Peabody employees. Between 2000 and 2008, the cost had risen by $14.6 million, or 152 percent. With the increase in employee contributions, the amount the city spends on health care has decreased.Under new contracts in the city, employees pay 15 percent of their premiums and contribute more for prescription drugs and doctor’s and emergency room visits. According to the contracts, employees previously paid 10 percent of the premiums on their health insurance plans.Additionally, the town of Beverly received the Municipal Blue Innovation Award. The towns of Arlington, Lexington and Reading and the Berkshire Health Group were also recognized.