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Milford staff scramble after NHIT announces closure; town seeks alternate health plans before July renewal
Summary
At the April 14 Milford Board of Selectmen meeting staff reported that New Hampshire Interlocal Trust (NHIT) told members it is dissolving; town officials and benefits staff are urgently exploring alternatives for employee and retiree coverage ahead of July renewals.
Karen Blow, a town staff member, told the Milford Board of Selectmen on April 14 that New Hampshire Interlocal Trust (NHIT) has informed member groups it will dissolve its trust and will not continue as a stable insurer for the town.
Blow said NHIT presented actuarial results showing claims that exceeded prior projections and that NHIT’s board notified July renewal groups of potential increases “between 27% and 65%,” prompting many July groups to seek bids and NHIT’s board to pursue dissolution. Blow said the town must move quickly because “we have a 5–6 week window” to select replacement coverage that would be effective July 1.
The presentation outlined staff outreach since the Friday when NHIT’s board announced the decision. The town has contacted brokers and alternative pools or carriers. Blow said she had been speaking with Kirsty Karpowich of Borislow Insurance about Harvard Pilgrim (now part of Elevance) options and had checked with HealthTrust for possible enrollment. Town staff are also identifying implications for retirees and for bargaining-unit plans (AFSCME), which may not match available carrier designs.
Selectmen pressed staff on timing and contingency planning. Chair Gary Daniels and other members asked whether NHIT’s closure is conditional on passage of Senate Bill 297; Blow said NHIT’s board decided to dissolve regardless of the pending legislation because the claims and reserve outlook made continued operation infeasible. She summarized that HealthTrust and NHIT oppose SB 297 as written while other pools support it.
Blow said the town’s immediate priorities include: (1) confirming whether potential replacement carriers can match current plan designs and give credit for deductibles already met by employees; (2) determining effects on retiree coverage; and (3) preparing for a possible short-term move to an open-market insurer. She told the board she would return with firm proposals as soon as bids and carrier responses are available.
Board members and department leaders said they want frequent updates and asked staff to prioritize finding options that minimize disruption and deductible exposure for employees. The board did not take a formal vote but directed staff to continue negotiations and to return promptly with specific proposals and cost estimates.
Blow warned that, depending on NHIT and HealthTrust decisions, the town may face higher premiums or the need to create reserves; any large budget impact could require budget adjustments or a town meeting appropriation.
Why it matters: Milford’s employee and retiree health insurance affects staffing costs, employee retention and retirees’ coverage. A forced, rapid move to market plans or a different pool could raise premiums and expose the town to one-time costs (deductible crediting, transition fees) and recurring increases that affect the FY2026 budget and bargaining-unit negotiations.
What's next: Staff said they expect more firm information within days to weeks and will call a follow-up meeting if needed before June to choose replacement coverage effective July 1.
