More than 204 communities and school districts have collectively saved $205 million in health insurance premiums thanks to the states municipal health care reform law, Gov. Deval Patrick announced today while speaking at the Massachusetts Municipal Association's annual meeting.

"Massachusetts leads the nation in health care coverage, and working together we are lowering the cost of health care so it can be as affordable as it is accessible," Patrick said in a press release. "With labor at the table, municipal health care reform has had a powerful and immediate impact on municipal finances across the commonwealth, while maintaining quality, affordable health care for working families.

There is the potential for an additional $45 million in savings if more municipalities and regional school districts use the reform process. Combined with savings announced today, this reform has the potential to achieve over $250 million in savings statewide.

So far, 81 communities have completed the process, modifying employee health plans or joining the Group Insurance Commission That has resulted in almost $70 million in employer and employee premium cost savings.

More than 122 communities and school districts have used the new law to negotiate plan changes without actually adopting the reform, resulting in more than $137 million in premium savings for employers and employees in the first year, according to the release.

The release notes the reform offers savings while preserving a role for unions in negotiations and protecting the quality of health care.

The reform could create up to $2.8 billion in cumulative savings over 10 years if implemented in all communities and districts, according to the Massachusetts Taxpayers Foundation.

This is among the most meaningful municipal reforms in decades, and its success has surpassed all expectations, Michael Widmer, the foundations president, said in the release. The early and widespread adoption by communities across the state shows the importance of this tool in providing municipal budget relief, both now and for years to come.

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Municipal health care reform leads to $205 million in savings