WILLIAMSBURG — Town employees should expect to pay about $38 more a month for health insurance beginning July 1, as the town contends with an expected increase in premiums in fiscal year 2026.

The town will pay about $750,000 to offer health insurance next fiscal year, which is $50,000 more than the current year. Officials said at a recent Select Board meeting that they are confident the town can accommodate the rising costs next year, with the modest increase for employees.

The current year’s standard monthly premium for a single person is $711, a figure that would rise to $839 next fiscal year.

The town, which contracts with Network Blue New England for health insurance, is covering 70%, or $90 per month, of the expected increase for a standard insurance plan, while employees will pay 30%, or $38. That means an employee’s contribution on a single plan would climb to $251 from the current $213. Retirees, however, will continue to pay 50% of the insurance premium. Retirees also make up almost half of those insured by the town.

While other communities are experinecing much higher health insurance premiums heading into next fiscal year, Williamsburg is being taken a little less off guard as officials have budgeted extra funds toward health insurance in their yearly budgeting.

“Between the town’s ability to raise taxes 2.5%, state aid from the governor’s budget, and usual receipts, we have capacity to pay for operating budgets,” said Nick Caccamo, Williamsburg’s town administrator, who added that “as presented today,” before additional expenses or town meetings, the town will be able to cover the increasing expenses of health insurance.

The insurance is the third-largest town expense — behind education for the Anne T. Dunphy School and Hampshire Regional High School — making up almost 10% of the town’s $10 million budget.