Town manager recommends Meredith pay health insurance deductibles for employees in order to keep its word

Like other municipalities and school districts, Meredith is reconsidering its health insurance plan purchases through the New Hampshire Local Government Center (LGC) — formerly known as the N.H. Municipal Association — and shopping for another provider.

Town Administrator Phil Warren said yesterday that originally the LGC quoted a guaranteed maximum price of $1.35-million for 2010, an increase of 26-percent over the year before, but recently lowered its quote to $1.28-million, still a jump of 20-percent. Moreover, he said that along with the steep increase, the LGC also introduced deductibles and raised copays. "We were getting less for more," he remarked.

Equally important, Warren emphasized that in reducing the cost to the employer the plan increased the cost to the employees through the required deductible and increased copays. In order to fulfill the Board of Selectmen's directive not to increase the town budget this year, he recalled that both cost-of-living-adjustments and step increases for employees were suspended, but at the same time employees had been assured that there would be no changes in their health insurance package.

When the selectmen met earlier this week, Warren recommended they consider switching to a Harvard Pilgrim plan offered by the CGI Employees Benefits Group of Hooksett, which includes both an HMO and a more expensive preferred provider option. At the same time, he suggested that the town supplement the plan by funding the deductibles also required by the CGI proposal — $1,000 for an individual and $3,000 for a family — in order to honor its commitment to its employees.

If all the town's 78 employees claimed the full deductible, the cost would be $167,000, but Warren said a projection of $15,000 was reasonable.

Altogether he estimated that the town would save $65,000 by switching from the LGC to Harvard Pilgrim.

However, by purchasing health insurance through the LGC, the town also enjoys discounted rates on its worker's compensation and property liability policies. Warren said that he will calculate the net effect of changing health insurance providers while at the same time shop for alternative worker's compensation and property liability carriers before making a final recommendation to the selectmen.