Gardner mayor outlines four options to address rising employee health costs

At a public meeting, Gardner's mayor explained four options the city is considering for its self-insured employee and retiree health plan and urged employees and retirees to contact their representatives ahead of advisory and public-employee committee votes.

The mayor said a common rumor is incorrect: "That's not the case," he said, referring to claims the city had already decided to leave Blue Cross. He gave a fiscal snapshot showing a guaranteed monthly Blue Cross payment of about $1.1 million, recent monthly claims near $2.4 million that required an additional "shore up" payment, and a current trust-fund balance of about $2.1 million—well below the stated healthy target of roughly $4.5 million. He framed the meeting as an effort to avoid having to make sudden cuts or face state intervention if the trust fund runs into the red.

Why it matters: The city's 75% employer share of premiums comes from property taxes and other general revenue, so higher insurance costs can force budget cuts to city services or staffing. The mayor said the city has absorbed roughly $5.5 million in increased insurance costs since 2019 and that…