Reading town manager highlights health insurance savings, MBTA culvert work | Reading

READING – Town Manager Jayne Wellman last week outlined a major health insurance agreement expected to save the town nearly $4 million over three years and updated residents on upcoming MBTA culvert replacement work during her report to the Select Board.

Wellman described the newly negotiated health insurance agreement as a “really important achievement” that would both improve benefits for employees and help stabilize the town’s financial outlook.

“Our employees are getting some better health insurance, and we’re going to be seeing some money in the process,” Wellman told the board.

The agreement was negotiated between the town and the Public Employee Committee (PEC), which includes representatives from each of the town’s bargaining units. Discussions began in the fall after the town’s insurance provider, MIIA, informed officials that Reading’s current health plan was unusually expensive and had remained largely unchanged for 35 years.

After reviewing alternatives, the town and PEC held negotiation sessions in late March and early April. The Select Board unanimously approved the agreement on April 14.

Under the new plan, employees will move for the first time to a deductible-based health insurance structure. The redesigned program includes both HMO and PPO options, as well as a newly added lower-cost HMO plan aimed at employees who primarily seek care locally.

Wellman said the new option would reduce HMO costs by approximately 13 percent.

Town officials are also adjusting the pricing difference between HMO and PPO plans to encourage greater participation in lower-cost HMO coverage. Currently, the difference in monthly premiums between the two plans is minimal, which Wellman described as “about a cup of coffee.”

The town plans to gradually increase that price gap over time, with the goal of making HMO coverage about 20 percent less expensive than PPO plans.

“These two items are poised to significantly save funds for the town,” Wellman said.

As part of the agreement, the town will also increase its share of employee health insurance contributions over the next three years. The current split of 71 percent paid by the town and 29 percent paid by employees will shift to 72/28 beginning July 1 and eventually to 73/27 in the final year of the agreement.

Wellman said the adjustment would help offset the impact of deductibles for employees while sharing savings generated by the new plan structure.

Additional changes include the introduction of a less expensive dental plan for employees who do not need orthodontic coverage, a small dental insurance subsidy, and the addition of pet insurance options paid fully by employees.

Using what she described as a conservative estimate, Wellman said the agreement is expected to generate approximately $3.9 million in savings over three years.

She praised Chief Financial Officer Sharon Angstrom, Human Resources Director Sean Donahue, and members of the PEC for their work on the negotiations.

“They understand the problem that groups are looking at financially in this community,” Wellman said of union representatives. “Many of them live in the community.”

Wellman called the agreement a “win-win all the way around.”

Later in her report, Wellman addressed upcoming MBTA culvert replacement work near Maillet, Sommes, and Morgan conservation land and Willow Street between Plymouth Road and Dustin Road.

She emphasized that the work is unrelated to the proposed MBTA turnback track project, an issue that has drawn significant public attention in Reading in recent years.

“We wanted to let folks know that this is not related to the turn back track project,” Wellman said.

According to Wellman, the MBTA plans to conduct the work overnight using large crews and backup equipment to complete the project efficiently. She said residents near the work areas could expect bright lighting and overnight activity while construction is underway.

“They tend to try to get it done overnight,” she said. “It’ll be lit up like a Christmas tree.”

The Conservation Commission is expected to review the project at its May 27 meeting, and a site visit is planned for May 25 at 8:30 a.m.

Select Board chair Melissa Murphy asked whether nearby residents would receive advance notice before construction begins, citing previous MBTA overnight work that residents said they were not informed about ahead of time.

Wellman said town officials would work with the MBTA to provide updates to residents once schedules are finalized, noting that the timing of the work will depend heavily on weather conditions.

“We’ll work to make sure that we get that information out,” she said, adding that the town could potentially use its CodeRED emergency notification system to alert residents.