NEW: On Saturday, April 18, the Marblehead Public Employee Committee released the following statement regarding the town’s health insurance premium split. (Marblehead pays 83% of insurance premiums, while employees pay 17%.)
“Recent discussion has focused on Marblehead’s employee health insurance contribution and comparisons to surrounding communities. Some have suggested changing Marblehead’s health insurance contribution to align with other communities. We believe these comparisons are most useful when they reflect the full compensation picture.
“Changes to employee compensation should be considered carefully. Changing the insurance split does not solve the town’s broader financial challenges and, without corresponding changes to other areas of compensation, makes it more difficult to attract and retain the workforce the community depends on.
“Health insurance is one component of total compensation, and how compensation is structured plays a role in the quality and stability of town and school services. Salary schedules, longevity, overtime eligibility and other contractual benefits all contribute to how employees are compensated across communities.
“In some communities, employees pay more for health insurance, but are compensated differently in other areas, such as higher longevity payments, different salary growth or other contract provisions. Communities that participate in the Massachusetts Group Insurance Commission (GIC), including Marblehead, share the same underlying premium costs. The difference is how those costs are shared between the town and employees.
“Comparing health insurance contribution rates in isolation does not provide an accurate or complete picture of overall compensation.
“The Marblehead Public Employee Committee represents employees across all municipal and school bargaining units, including educators (Marblehead Education Association), police (Mass C.O.P. Local 437), fire (IAFF Local 2043), municipal staff (Marblehead Municipal Employees Union, IUE-CWA Local 1776) and retirees (Massachusetts Retirees Association).
“We remain committed to thoughtful, fact-based discussions that support a strong and stable workforce for Marblehead’s schools and town services.”
The town’s PEC consists of the following members:
Terri Tauro, MMEU
Eric Ridge, Fire
Dan Gagnon, Police
Kathy Gazola, Retirees
Jonathan Heller and Sally Shevory, MEA
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The town of Marblehead pays a higher percentage of employee health premiums than many other communities, and a reduction could save the town more than $1 million a year, Finance Director Aleesha Benjamin acknowledged. But while the town is trying to lower its insurance costs, the process is complicated, she added.
According to Benjamin, the town pays 83% of employee health premiums, with the remaining 17% paid by workers.
“If we changed our 83% plans to 75% that would save $1.2M,” Benjamin wrote in an email to the Current.
Under state law, the split is negotiated with a Public Employee Committee composed of current and retired town employees. Each collective bargaining unit in town is represented on the PEC, and there is also a retiree representative, who holds a 10% share of the voting power of the committee. The remaining 90% is divided proportionally based on union membership, meaning in Marblehead, the Marblehead Education Association holds the largest share.
The 83-17 split has been consistent in Marblehead agreements dating back to 2012, Benjamin noted, except Medicare plans have a 75-25 split, while employees also have the option to select a plan that has a 65-35 split, Benjamin noted.
Under state law, municipalities must contribute at least 50% of premium costs. In Massachusetts, the average private-sector employee pays about 24% of his or her premiums, according to the Center for Health Information and Analysis.
The town of Swampscott pays 73% of its employees’ health premiums.
“Wow, that’s really high,” said Swampscott Employee Experience Manager Mary Anne McMaster when asked about Marblehead’s 83%.
Benjamin emphasized that Marblehead cannot unilaterally change the percentage.
“The town must bargain with the PEC by Massachusetts General Law Chapter 32B Section 19,” she wrote. “The PEC must agree to change the contribution percentages. If they don’t and we cannot come to an agreement by June 30, 2026, the current agreement automatically rolls over.”
Benjamin added, “The town reached out to the PEC on March 17 to request a meeting to begin the negotiation process; however, as of this writing, the administration has not received a date to meet.”
The two sides met last on Nov. 18, 2025, according to Benjamin.
The PEC negotiates only the percentage split of premiums. All other aspects of health insurance — including plan design, benefits and carriers — are determined by the state’s Group Insurance Commission.
Town employee Terri Tauro sits on the PEC.
“I do not speak on behalf of all representatives on the PEC but in general, the Public Employees Committee negotiates health insurance contracts in good faith and attempted to introduce creative ways to mitigate the issues with the town finances in the last round two years ago,” Tauro wrote to the Current.
“We are always willing to come to the table and discuss possibilities, but it is counterproductive to bargain against ourselves,” she said. “We are not responsible for the town’s fiscal responsibilities and we did not create them.”
The debate comes as town officials warn that rising health insurance costs are a major driver of budget pressures and a projected $7.7 million deficit for fiscal 2027. Its proposed budget slashes programs and positions.
The Select Board is discussing a three-year, tiered Proposition 2 1/2 override to restore cuts.
