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Selectmen approve move to SchoolCare; town to cover 14% premium increase for employees
Summary
After hearing that NHIT is winding down and outside carriers quoted large premium increases, the Milford Board of Selectmen voted to move municipal health coverage to SchoolCare and to have the town pay the roughly 14% premium increase for all covered employees.
The Milford Board of Selectmen voted May 12 to transition the town’s municipal health coverage to SchoolCare and to have the town cover the roughly 14% increase in premium costs for employees.
Town finance staff told the board the New Hampshire Interlocal Trust (NHIT) wind-down has left the town facing a range of quotes from carriers. According to the presentation, Harvard Pilgrim quoted about a 27% increase; Anthem’s quoted range was 22%–65%; Cigna did not respond to the town’s request; SchoolCare’s modeled increase was about 14%. The board’s motion, made by Selectwoman Tina Philbrick and seconded by Selectman LaVonte, approved switching plans and absorbing the approximately 14% additional premium across the board for every employee group the town covers, including water and sewer utility employees and the library staff. Selectman Dodge recused himself; the motion passed 3–0–1.
Town Finance Director Troy Neff (presenting the financial analysis) said the town’s undesignated fund balance could absorb the cost in the near term while staff monitor the NHIT wind‑down trustee’s updates. Neff showed a budget model that accounted for salary savings from several currently vacant positions; he estimated that, based on the largest NHIT invoice seen in February, the additional premium would be about $16,250 for that billing period and that multiplying that increase over the remaining six months of the fiscal year would produce roughly $100,000 in added premium cost for the town.
Neff said a trustee handling the NHIT wind down had indicated Milford represents about 2% of the pooled membership and that any assessments would be allocated pro rata; the trustee said some funds are being held (including by Harvard Pilgrim) and he hoped assessments would be limited. The board was told there is budget room now to pay the extra premium, and that any potential assessment tied to NHIT’s wind down could be addressed as the trustee provides more detail.
Meeting materials and the public presentation indicated the chosen approach would preserve employees’ current plan choices and honor deductible accumulations so workers would not face new deductible resets. The board directed staff to notify SchoolCare and to begin transition steps.
The board’s action was a formal authorization to switch coverage and to fund the 14% premium increase from town funds; staff were given authority to implement the transition and keep the board informed about any NHIT-assessment developments.
