Senator Brian A. Joyce is pleased to announce the Senate passage of a bill to create a local option for cities and towns to buy their health insurance through the state insurance plan commonly known as the Group Insurance Commission. The legislation would help municipalities reduce health insurance costs, potentially saving $120 million to $180 million per year.

“This legislation would give municipalities health care options they don’t currently have and would allow them to use the money they save for other areas of need, such as education or public safety,” said Senator Joyce.

GIC rates are expected to rise by just 5 percent in 2008 compared to 11.3 percent for all other Massachusetts employers. Decisions to join the GIC would require 70 percent approval from a municipality’s union employees and retirees.

The Senate’s version of the GIC legislation included an amendment that would add two immediate municipal members to the GIC oversight board, increasing the number from 11 to 13. Another two municipal members would be added after the first 45,000 employees sign up for the plan.