06/16/2026
Day 2 on City of Boston Health Insurance costs -- a $92m increase in spending from FY26 - FY27. As a frame of reference, all of the City Council's approved FY27 budget amendments were only $11.2m.
How are decisions regarding healthcare benefits and premiums decided?
The City bears all financial risk for most of its employees’ health plans and absorbs unexpected cost spikes on its own. Boston's healthcare plan design and payment structure splits responsibility in two: the Administration negotiates plan design (copays, networks, deductibles, drug coverage) with the Public Employee Committee (PEC), which represents unions across the City; the Administration sets premiums and pays claims from the health trust fund.
Read the full report:https://www.bmrb.org/wp-content/uploads/2026/03/SR2601.pdf