HADLEY — With a Dec. 1 deadline looming for deciding whether to leave the Hampshire County Group Insurance Trust, Hadley officials recently learned of the growing likelihood that the town will remain part of the 73-member trust.
Human Resources Director Lauren Wilcox told the Select Board at its Nov. 5 meeting that there are “dwindled pickings” for alternatives, with the Massachusetts Interlocal Insurance Association the only option at this time, because getting into the Group Insurance Commission will take too long.
Wilcox has been spearheading the work on figuring out the approach after Hadley, like other members, got a 20%, $486,000 midyear increase in insurance effective on Oct. 1. That followed a $330,000 increase for the fiscal year beginning July 1. The second increase was needed to prevent the trust, which provides insurance for more than 12,000 active and retired public employees, from going bankrupt at the end of September.
But the Dec. 1 deadline isn’t possible in assigning a Public Employee Committee, or PEC, and getting in place the Insurance Advisory Committee made up of union representatives.
While GIC has been explored, Wilcox said some of its offerings are lacking. “They don’t have a Blue Cross/ Blue Shield offering,” Wilcox said.
MIIA could work, but this can’t be pursued until receiving claims data back from the Hampshire County Group Insurance Trust.
Once that is received and forwarded on, Wilcox said she will find out if MIIA will take Hadley at all, the rates they would offer and the options, with over 100 plans.
“We’re stuck in a waiting point,” Wilcox said.
As part of getting prepared for an insurance change, Wilcox sent a letter to union presidents to have them choose their members for the Insurance Advisory Committee to review options. The PEC would be formed a bit later.
To make a change that unions can get behind, town officials will have to show there is a cost savings, she said.
Wilcox said the Hampshire County Group Insurance Trust is finding that the increases, which communities across the region have absorbed, along with plan changes that will limit the use of expensive weight loss drugs, is bringing stability. This is causing most members to remain.
“A lot of municipalities are staying in the trust,” Wilcox said.