Daily Hampshire Gazette – Hatfield grapples with how to pay for health insurance spike

HATFIELD — With a shortfall of at least $86,269 in what is budgeted to cover Hatfield’s share of health insurance for municipal and school employees, officials are opting against increasing the town’s contribution to help workers affected by the rising insurance costs.

While members of the Select Board at a meeting Tuesday said they understand the 20% increase in assessments to the Hampshire County Group Insurance Trust on Oct. 1 will impact the town’s budget, as well as the personal finances for those who work for the town, they decided not to absorb any portion of the increase for which employees will be responsible.

“I don’t know if it’s the burden of the taxpayers to incur that additional extra 20% that the employees are being asked to contribute,” said board member Luke Longstreeth.

Yet because family plans are expected to go up by $192 more per month and single plans are expected to go up by $78 per month, board Chairman Ed Jaworski said he doesn’t want to put the “huge jump” in insurance on the backs of employees. Those insurance costs would likely eat up most of or all the 2.7% cost-of-living adjustment provided to employees, he said.

Instead, the town could adjust the 60%-40% split in health insurance payments, Jaworski said, such as by going up to 62% to alleviate this. “We would take on the additional burden,” Jaworski said.

But board member Greg Gagnon said that the cost-of-living adjustments were what the town could afford. “At the same time we’ve told all employees that was all we could do,” Gagnon said, adding that any relief would only be helping those employees who get their insurance through the town, not those with other plans.

Increasing the town’s contribution, along with the higher insurance payments, would also mean a bigger ask from taxpayers, he said.

For fiscal year 2026, residents at annual Town Meeting in May adopted a $1.02 million budget for insurance, which was up $250,124, or a 32% increase above the $772,876. That sizable increase was due to both a 5% increase in the town’s contribution and a significant HCGIT increase.

Town Administrator Andrew Levine said the $86,269 figure could rise in the coming weeks as more workers are hired, with four employees, split evenly between single and family plans, increasing the deficit to $133,000.

Eventually, an additional appropriation will be needed, though there is a good amount of contingency, Levine said, that could provide the town a cushion into next May or June.

Jaworksi said town officials will need to figure out how to cover the costs.

Levine said there are options available, such as the state’s Group Insurance Commission and the Massachusetts Interlocal Insurance Association, and he anticipates many members of the HCGIT will be exploring.

“I think everyone is thinking we need to be looking at every option that is available,” Levine said.

Levine said he also may consult with experts in health care, noting that the bottom line is “this is hard for both the town and employees to take on an additional 20%.”

Scott Merzbach can be reached at [email protected].