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Ogdensburg CFO warns State Health Benefits ‘death spiral,’ council told to prepare to leave
Summary
CFO Mike Marceau told the council the State Health Benefits Program is structurally insolvent, citing a proposed 37% premium increase for 2026 and urging the borough to seek an alternative insurer with a likely move by October.
The Borough of Ogdensburg’s chief financial officer, Mike Marceau, told the council on July 14 that the State Health Benefits Program (SHBP) for local government faces severe financial instability and that the borough needs to prepare to exit the plan.
Marceau read from a State Benefit Commission report, saying, “The State Health Benefits Program for local government has reached an inflection point. What began as a commitment to offer affordable, high-quality coverage to public employee has become structurally unstable and financially unsustainable system, due to adverse selection, diminished participation, and cost escalation. ... what actuaries commonly refer to as a death spiral.” He told the council SHBP premiums rose about 59% from 2022–2025 and that the recommendation projects a further 37% increase for 2026. He said borough staff expect to begin arranging alternatives and will likely seek council approval to change carriers, possibly as soon as October.
Mayor and council members did not take an immediate vote but were briefed on timing and next steps. Marceau said the borough has been working with its liability insurer broker and the school district’s broker to identify options. He asked council to be ready to consider a resolution in coming months authorizing a transition away from SHBP if a viable alternative is identified.
The discussion was procedural and informational; no legislative action to change benefits was taken at the July 14 meeting. Councilmembers requested updates as staff and brokers finalize alternatives and cost comparisons.
