The prospect of New Hampshire Senate Bill 297 becoming law has prompted worry among local town officials who have expressed concern over how to continue health insurance coverage for town employees beyond June 30. 

State Sen. Sharon Carson of Londonderry has sponsored the legislation, which would impose stricter reserve requirements on insurers in the state's risk pool that covers municipalities, and to “seek receivership, if necessary, of a pooled risk management program” if the financial viability of an insurer is in question.  

New Hampshire Interlocal Trust currently provides insurance for municipalities, including Wilton, and in March, the organization urged members to contact senators and ask them to oppose SB 297. On April 11, NHIT informed Wilton that in light of the bill’s prospect, it would cease coverage for town employees on June 30.

Last week, the select board in Dublin, which insures with HealthTrust, another risk pool that would be impacted by SB 297, wrote to state Sen. Donovan Fenton and Reps. Rita Mattson and Jim Qualey regarding the bill. 

“We are reaching out to you to express our deep concern about Senate Bill 297,” the letter stated, noting that if the bill passes, the Legislature would potentially be asked to approve funds for premiums for four years, and that if it fails to do so, “(Dublin) would lose health coverage, have to pay a share to get out of HealthTrust and scramble to find other health care that may be over the amount in the budget.” 

Regarding its relationship with HealthTrust, the Select Board stated in its letter that “This company provides a very valuable service to the public entities of New Hampshire; SB 297 disrupts their business model to the point where they are going to close if this passes. Dublin is already struggling to budget responsibly; especially in light of the ever-increasing school portion of the tax burden. Having other insurance will most likely be more expensive for the Dublin taxpayers.”

Fenton responded to Dublin’s letter by saying that the Senate had already voted on the bill, according to Dublin Town Administrator Kate Fuller, and Mattson could not be reached for comment. Contacted for comment Monday on the email sent to him from Dublin’s offices last Wednesday, Qualey said that he had not read the bill and would not comment on the matter. 

Jamie Pike, Town Administrator for Francestown, confirmed that Francestown uses HealthTrust for town employees. 

“We are watching to see what happens with SB 297, and are just starting to explore potential future options if needed,” Pike said Thursday. 

Greenfield Town Administrator Aaron Patt said the town uses  HealthTrust for short-term disability, long-term disability, and life insurance for town employees, but not health or dental coverage. 

“We use SchoolCare for health and dental,” Patt said. 

Antrim also uses HealthTrust, according to Town Administrator Scott Lester.

“We are concerned with any changes that alters HealthTrust’s ability to provide us the services we currently have in place,” Lester said Monday. 

Reached Monday regarding whether Peterborough could be affected by SB 297, Town Administrator Nicole MacStay said, “Fortunately Peterborough gets its coverage through SchoolCare, so we are not affected.” 

House testimony

SB 297 is pending action from the House Commerce and Consumer Affairs Committee. On April 23, Secretary of State David Scanlan spoke during a committee hearing on his office’s exchanges with HealthTrust regarding the legislation at a hearing of the House Commerce and Consumer Affairs Committee in Concord. 

“HealthTrust’s questions to me were more like a deposition than a conversation,” said Scanlan. 

New Hampshire Senate Deputy Chief of Staff Grant Bosse said, “Some risk pools have set rates far too low to cover their liabilities,” and that the bill “sets trigger mechanisms allowing for the Secretary of State to seek a receiver (for the insurers) through the courts,” if necessary.

“It increases transparency," he said.

HealthTrust Executive Director Scott DeRoache said during the hearing that the organization experienced “adverse claims experience in fiscal years 2022 and 2023” and that “contingency reserves fell to 4.7% of expected contributions from over 19% previously,” adding that “We are in the midst of a multi-year rebuilding plan.”Margaret Burns, executive director of the New Hampshire Municipal Association, said at the hearing that “The bill threatens public employees. It creates unlimited financial risk for local governments.” 

Staff reporter Jesseca Timmons contributed to this story.