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Marlborough committee backs $4.19 million transfer after comptroller finds health trust shortfall

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Summary

City comptroller reported a multi-year undercount in the health insurance trust and recommended a $4,187,233 transfer from free cash; the finance committee approved the transfer and asked the administration for written procedures to prevent recurrence.

The Marlborough City Finance Committee on May 1 voted to transfer $4,187,233 from free cash to the city’s health care trust fund to cover a projected deficit identified by the newly hired comptroller.

Comptroller Brian Doheny said the city’s self-insured health plan suffered elevated claims beginning in late FY23 and carried through FY24. “So how the health trust fund works … We’re self insured, so we cover ourselves,” Doheny said. He told the committee the trust lost about $1.8 million in FY24 and that claims in successive quarters were substantially higher than prior-year periods — a roughly $2.7 million increase across two quarters he reviewed — leaving the trust underfunded for expected liabilities including incurred-but-not-reported (IBNR) claims and several…

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