Shrewsbury aldermen vote to stay with UnitedHealthcare after Mercy signals Anthem cutoff

The Shrewsbury Board of Aldermen voted 5–1 on Sept. 10 to remain with UnitedHealthcare for city employee health coverage after Mercy Hospitals announced it would stop accepting Anthem beginning Jan. 1, 2025.

Finance Director Henrietta Brown told the board that the decision to switch to Anthem at a special meeting on Sept. 3 was disrupted by the Mercy announcement, prompting reconsideration. Brown presented the operational concern that employees could lose access to their current providers if the city switched to Anthem.

Alderperson Bette Welch said the board should prioritize employee peace of mind over marginal cost savings: "The savings didn't outweigh the benefits of allowing employees to stay with their physicians," she said. Alderman Ben Stark said he opposed reversing course immediately, arguing Mercy might change its position.

Alderman John Odenwald moved to stay with UnitedHealthcare on the condition that the contract renewal not exceed a 5% increase; Alderperson Welch seconded. The motion passed by voice vote, five in favor and one opposed (Alderman Stark).

Residents who addressed the board during public comment urged caution and proposed cost-sharing options. Christine McDermott suggested employees contribute toward any additional cost, proposing "employees contribute 1% of the $50,000 needed to maintain their current insurance," and Patricia Steiniger urged staff to begin shopping for alternatives six months into the contract to avoid being caught off-guard at renewal.

The board recorded no formal dollar amount for the final contract in the meeting minutes beyond the 5% cap condition; staff were directed to proceed under that constraint and return with final contract details as available.