NORTH ANDOVER — The town has watched health insurance spending increase by more than $2 million over the last few years, and it's ready to do something about it.
Officials have formed a Health Insurance Subcommittee, made up of School Committee and Board of Selectmen members who will meet with union representatives and administrators to brainstorm ways to slow down or even shrink this annual budget drainer.
The subcommittee met for the first time Tuesday night with the goal of having a comprehensive plan to present to all unions by early spring.
"Obviously, everyone understands that health insurance in its current form is unsustainable," Selectman Tracy Watson said yesterday. "We're attempting to engage in some authentic dialogue with unions that will benefit both town employees and the town as a whole."
"We're getting creative," she said.
School Committee members Chris Nobile and Chris Allen also will serve on the subcommittee.
According to Assistant Town Manager Ray Santilli, North Andover spent $6.2 million in health insurance in fiscal year 2006. That increased to $7.2 million in fiscal 2007, and budgeted $8.2 million in fiscal 2008.
The town has budgeted $8.3 million this year.
"The old way isn't working," Watson said. "There is a genuine spirit of working together toward a common goal. Everyone came to the meeting with an open mind and different perspectives. I have faith this might just work."
Andover formed a similar health insurance committee back in January 2007. After more than a year of discussions with unions, they came up with a plan to save more than $700,000 annually last spring. Andover leaders are still waiting to see if all unions buy in to the new plan, as contract negotiations continue.
North Andover's insurance subcommittee will meet for a second time in early October.
