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Charlton selects Mass Strategic Health Group plan, adopts high-deductible option to hold FY27 rates
Summary
The Charlton Select Board voted March 24 to accept the insurance advisory committee's recommendation to move municipal coverage to the Mass Strategic Health Group and to institute a high-deductible plan design intended to hold rates steady for FY27; the board acknowledged run-out claims from the prior carrier and placed a contingency in the draft budget.
The Charlton Select Board voted March 24 to accept the insurance advisory committee's recommendation to move municipal employee coverage to the Mass Strategic Health Group (a Harvard Pilgrim purchasing group) and to institute a high-deductible plan design effective July 1, 2026.
Tara Fafford, an account executive with insurance advisor NFP, told the board that moving to a large deductible would allow the town to hold rates at zero percent for fiscal 2027. "By moving to a $501,000 deductible, we're able to hold the rates at 0% for fiscal year 27," Fafford said. Town finance staff and advisors described the recommendation as a way to contain near-term premium increases while the town manages historical claims costs.
Finance Director Ashley Oversup and other staff cautioned that the town will have to manage 'run-out' claims owed to the prior provider (Hampshire Group); those costs are expected to appear on the town's ledger as claims are processed. Oversup said the town will calculate the amount required under statute for employee savings and work with union and retiree representatives to allocate any mandated return to employees for the first year.
Town Administrator Andrew said staff and the finance committee will include a contingency in the FY27 budget to cover run-out liabilities and projected claim payments. Board members asked about provider network disruption and were told NFP's evaluation found only a small percentage of provider differences, with workarounds available.
The board moved to accept the recommendation and the motion passed. The vote directs staff to proceed with implementation steps for enrollment and to return to the board with final cost figures and any necessary administrative adjustments.
What happens next: staff will work with NFP to finalize enrollment details, quantify the run-out liability from the Hampshire Group policy, and calculate the employee-side savings to be distributed in year one under the cited statutory provisions. The town scheduled budget follow-up work with the finance committee and a joint board meeting on April 14.
Attribution note: statements about rates, deductibles and run-out liabilities were reported by insurance advisors and town finance staff during the March 24 meeting and reflect recommendations adopted by the board.
