Recent changes to town employees’ health insurance will save both Duxbury and its workers more than $2 million over the next three years.

According to Human Resources Director Jeannie Horne, who presented the plan at the Board of Selectmen’s meeting Monday night, the savings are a result of the town’s adoption of the Municipal Health Insurance Reform Act in December. This state law allows town officials more options when negotiating town employees’ health insurance plans. Horne said after meeting with committees consisting of representatives from labor unions, non-union personnel and retirees, the town and the representatives were able to create a new health care plan that met their needs and saved money.

Under the Municipal Health Insurance Reform Act, employees can either stay with their existing coverage, join the state’s Group Insurance Commission, or choose a different plan that is modeled after, but does not exceed the GIC plan.

Horne said the employees’ committee and the town were able to “meet in the middle” and hammer out a new plan that was agreeable to all.

“The unions proposed a plan that was going to save nearly the same amount as the town was hoping to save,” said Horne. “We are calling it the Duxbury Plan.”

The new plan includes higher co-payments and deductions for visits to the doctor’s office and the emergency room, and for hospital admissions, day surgery, high-tech imaging and specialists.

For the next two years, the Duxbury Plan will be in effect, then the town will switch to the Benchmark Plan, which will require employees to meet deductibles for the first time in the history of the town’s health insurance, said Horne.

“Together the town and the rate payers will save over $2.2 million over the next three years,” she added.

The revamp of the health insurance plans will also eliminate the Master Health Plus plan, long-known in municipal circles as the “Cadillac” of health care for its wide ranging coverage. Horne said Master Health Plus is an indemnity plan and the town has no ability to negotiate rates in this plan.

“That is a huge win in this arena as well,” said Horne.

Town Manager Richard MacDonald praised Horne’s accomplishments.

“This was a monumental task,” said MacDonald. “Jeannie did a tremendous job in coordinating this effort.”

Selectman Chair Ted Flynn agreed and thanked the unions and employees for their part in the negotiations.

“I would like to recognize the spirit of cooperation, which allowed us to come to a very good conclusion,” said Flynn.