New Hampshire Interlocal Trust dissolves amid rising health insurance costs

In a recent meeting of the Alton Town Council, significant concerns were raised regarding the future of the town's health insurance coverage due to the impending dissolution of the New Hampshire Interlocal Trust, the current provider for the town's health insurance risk pool. The council was informed that the Interlocal Trust, which has served multiple municipalities across the state, is set to dissolve effective June 30, 2025, following unexpected financial challenges.

The Interlocal Trust had anticipated a modest cost increase of 8% for its members but was instead faced with a staggering trend of 19%. This discrepancy led to a proposed rate hike of 32%, which prompted a mass withdrawal of members from the risk pool, as many communities found the increase unsustainable. The council highlighted that a 64% increase in health insurance costs could severely impact the town's budget, which allocates approximately $1.3 million for health insurance.

In light of this development, the town is actively seeking alternative health insurance options. The council has reached out to brokers and agents recommended by the Interlocal Trust and is in discussions with Harvard Pilgrim to maintain current rates while exploring new options. The urgency of the situation was underscored by the rapid timeline, with the council expecting to receive updated proposals within the next week.

This unexpected turn of events has left many municipalities scrambling to secure affordable health insurance for their employees. The council emphasized that this situation was unforeseen, with no prior indication from the Interlocal Trust about the impending dissolution. The town is committed to keeping employees informed and is working diligently to find a viable solution to ensure continued health coverage.

As the council navigates this critical issue, the implications for the town's budget and employee welfare remain a top priority. The outcome of these discussions will be closely monitored, as the town seeks to stabilize its health insurance situation in the face of this unprecedented challenge.