CONWAY — Amid a $108,000 increase to the cost of health insurance through the Hampshire County Group Insurance Trust, the Selectboard and Finance Committee are staying the course for now while also exploring possible alternatives for fiscal year 2027.
After already budgeting for an initial 18% increase for health insurance heading into fiscal year 2026, Hampshire County Group Insurance Trust member towns and schools must now address an additional 20% hike, which took effect Oct. 1, after the trust’s July 30 vote to increase rates. Members of the trust reached this decision after being informed that the organization was at risk of going bankrupt due to increased pharmaceutical and medical claims, and the growing popularity of weight-loss drugs.
Together, these bumps to health insurance rates add up to another $108,000 for Conway.
To determine the best path forward, Town Administrator Veronique Blanchard attended informational meetings with the trust, the Franklin Regional Council of Governments and potential alternative insurance providers, including the Massachusetts Interlocal Insurance Association, the Marsh McLennan Agency and the Group Insurance Commission. On Monday night, she shared her recommendation.
“After everything I’ve learned, my personal feeling is that the best thing we can do is to stay with the trust,” Blanchard told the Selectboard and Finance Committee. “Even with the increases, we’re still at least as good. Some of the other plans have higher deductibles and copays.”
Although no concrete plan for funding the health insurance increase is in place, the funds will likely flow from free cash if residents certify it during a Dec. 6 Special Town Meeting.
Still, to prepare for the possibility of the Hampshire County Group Insurance Trust collapsing or future hikes in costs, the Selectboard and Finance Committee plan to continue exploring insurance alternatives before the start of fiscal year 2027 next July.
“We have no option for the rest of the fiscal year, that’s very clear,” Finance Committee member John Craine said, “but how do we position ourselves, so that on July 1, we have the option of going somewhere else?”