SchoolCare tells Concord School Board $30 million pooled assessment will cost district just under $2 million

SchoolCare, the nonprofit risk pool that insures New Hampshire school districts, announced a $30 million contribution assessment on Sept. 21 that will be allocated pro‑rata to members and will require Concord School District to pay just under $2,000,000, the pool’s executive director told the Concord School Board on Sept. 24.

"That assessment today is 2 just under $2,000,000 for Concord School District," SchoolCare executive director Lisa Duquette said during a presentation to the board, explaining the levy is intended to rebuild reserves after multiple years of escalating claims and reduced pharmacy rebates. Duquette said actuaries, auditors and the Secretary of State reviewed the data and supported the board’s decision.

SchoolCare attributed the deficit mainly to higher utilization and a rising number of very large claims, especially specialty pharmacy and biologic medications. Duquette said the pool expected to receive pharmacy rebates from its administrator, Cigna, but collected only about two‑thirds of the anticipated rebates this year; combined with unusually high claims experience, that shortfall contributed to the deficit.

Kirsty Karpowich, a consultant who advised the district and presented national and regional cost trends before the SchoolCare briefing, said specialty drugs and hospital unit‑cost inflation are driving unusually high health‑plan trends. "We're living in the highest annual projection cost increase for medical and prescription drugs in over a decade," she told the board, citing national surveys and New England renewal ranges for 2026 that in some cases exceed double digits.

Duquette outlined how the assessment will be implemented: invoices will be issued Oct. 1 and carry a 90‑day grace period with no interest; interest of 0.5 percent per month (6 percent annualized) will begin after Jan. 1, 2026. She said SchoolCare has asked members to notify the pool of their intent to pay prior to May 1, 2026; if a member is unwilling or unable to pay, SchoolCare said it would place a claims hold on that group’s claims beginning May 1 and could instruct Cigna to deny claims if payment is not received by mid‑July. Duquette said those steps were necessary to protect the pool’s solvency and that, without corrective action, SchoolCare would not have cash to pay claims beyond April 30, 2026.

Board members pressed SchoolCare on timing and equity. Several trustees asked why districts were not notified sooner; Duquette said the board received confirming actuarial studies Aug. 19, began weekly public meetings with added experts Aug. 20, and made a decision Sept. 21, with public notices issued within 48 hours. Trustees also asked whether districts that joined the pool July 1 would be assessed; Duquette said the assessment applies only to members as of June 30, 2025, and that new members’ claims experience will be reflected in future rate setting but are not part of this one‑time assessment.

The presentation also included mitigation steps SchoolCare is pursuing: contract negotiations with Cigna that Duquette said are expected to yield more than $5 million in annualized pharmacy savings starting Jan. 1, 2026; a potential bridge line of credit; a hiring freeze and internal expense reductions at SchoolCare; and targeted vendor and program reviews to reduce high‑cost claim outcomes.

District finance staff told the board that, combined with a projected drop in state adequacy aid and a small decline in the city valuation, Concord’s near‑term fiscal gap from the assessment and other revenue changes could be roughly $3.0 million. Board members and staff discussed options for the district to absorb the cost, including drawing on trust funds, implementing hiring and travel freezes, deferring discretionary spending and reducing contracted services. Several trustees emphasized protecting classrooms and special education services.

"This is precisely why we have trust funds," board member Richards said, urging the board to consider trust balances and to prepare a public list of options. The board asked staff to prepare a costed menu of options and to circulate those figures to members and the public before a budget meeting the board scheduled to finalize decisions in early October.

Earlier in the meeting the board also approved a motion under RSA 91:82:3 to allow Miss Hastings to participate remotely; the vote carried. No formal vote on accepting or rejecting the SchoolCare assessment occurred at the Sept. 24 session; the board framed Sept. 24 as an informational hearing and requested concrete budget scenarios for its next meeting.

The district will continue public deliberations: staff will produce estimated dollar impacts for options discussed and release them to the board and community ahead of the next budget meeting, currently planned for early October.