Brentwood Select Board learns town has been overpaying health premiums; committee and staff outline options
Loading...
Summary
The Brentwood Select Board discussed an apparent multi-year error in health-plan premium splits that town staff estimate increased town costs by roughly $78,000 and left employee deductions tied to 2024 rates, and directed staff to gather options and broker proposals before deciding.
The Brentwood Select Board discussed an apparent multi-year error in how the town has been paying employee health insurance premiums and next steps for correcting the problem.
Finance staff said the town has been offering a higher-cost plan (Plan A) at more generous town contributions than the employee handbook requires, and that employee payroll deductions remain tied to 2024 rates rather than updated 2025 figures. Julie (town staff) told the board that the initial, conservative estimate of the additional expense to the town is roughly $78,000. Public commenters and other budget committee participants later suggested that figure could be higher — near $94,000 — depending on which rates are used in the calculation.
The board and the budget committee described the issue as both a fiscal problem for the town and a personnel concern because employees reasonably relied on the previous premium splits. Julie reported she now has access to HealthTrust data and will meet with HealthTrust’s broker to assemble alternative plan options and cost scenarios for the board to consider.
Board members and budget committee representatives said they want a forward-looking, balanced fix rather than immediate retroactive adjustments that would impose large costs on employees. Options discussed included: reverting to the employee handbook’s plan splits on a graduated timetable (for example, partially restoring required employee contributions in 2026 and fully restoring them by 2027), evaluating higher-deductible plans, and contributing to employee HSA/FSA accounts to soften employee impacts.
At the budget committee meeting the previous evening, members recommended exploring private broker proposals as well as options through HealthTrust. A resident who has been assisting the budget committee said the set of plans that will be available and the final 2026 rates are not yet known; HealthTrust rates are expected to be released in early October and enrollment runs into November. That timing means the board has time to gather options before making a final decision.
Several public commenters urged careful handling to avoid unexpectedly shifting large costs to employees and suggested the board investigate whether earlier excess town payments raise any retrospective legal or fiduciary issues. The board said it would look first at options for future policy and then determine whether any further inquiry into past payments is warranted once more data are gathered.
The board directed staff to: (1) meet with the HealthTrust broker and collect a range of plan and premium scenarios; (2) develop a graduated approach the board can consider for 2026–2027 to return to handbook-prescribed contribution splits; and (3) report back with numbers and recommendation to the full board and budget committee.
Board members emphasized that they were balancing the town’s fiscal responsibilities with a desire not to unduly penalize employees who relied on prior treatment of benefits.
The Select Board did not vote on a policy change at the meeting; members said a full board and additional financial detail will be needed before taking formal action.
