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Litchfield schools switch to self-insurance, board authorizes $201,000 for employee HRAs
Summary
The board authorized $201,000 to fund employee Health Reimbursement Arrangements (HRAs) and approved retiree-payment pass-throughs as the district transitions to a self-insured health plan beginning the next day; administration will provide frequent tracking reports to the board.
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The Litchfield School Board authorized financial and procedural steps to complete the district’s transition to a self-insured health plan.
Administration told the board that the new self-insurance plan launches the day after the meeting and asked the board to authorize set-asides for contractual obligations. The board approved a motion to set aside $201,000 to fund employee HRAs for FY27 and separately authorized a pass-through process to accept retiree insurance dollars from the New Hampshire retirement system and remit them to the district’s retiree insurer (a procedural acceptance that the district must undertake while acting as the payor). Both motions were approved by roll-call votes recorded in the minutes.
Officials said the district and its third-party administrators are finalizing operational details and that the district will send frequent tracking reports (weekly initially) to the board to monitor HRA draws, claims activity and budget impacts. Administration emphasized they will protect employee HIPAA-protected information while sharing aggregate tracking data with the board.
Next steps: staff will implement the self-insurance flows, finalize reporting spreadsheets for the board and monitor claims/cashflow to inform FY28 budgeting. The board asked for a weekly digest while the conversion stabilizes.

