Hatfield Select Board Grapples with 20% Health Insurance Hike as Budget Pressures Mount

The Hatfield Select Board meeting on August 12th focused heavily on the significant 20% increase in health insurance premiums proposed by Hampshire County Group Insurance, a topic that dominated the discussions and highlighted concerns about the financial impact on both town employees and the municipal budget. As the board navigated the complexities of managing these increased costs, they explored various strategies to mitigate the burden on employees while considering the town’s fiscal responsibilities.

Board members delved into the implications of the insurance premium hike, noting that the current funding split is 60% covered by the town and 40% by employees. Under this arrangement, employees enrolled in family plans could see substantial annual increases, with the PO family plan rising by approximately $1,900 and the Network Blue family plan by about $2,500. Given these figures, the board acknowledged the need to address the financial strain on employees, as their recent cost-of-living adjustments could be effectively nullified by the increased insurance costs.

A critical aspect of the discussion revolved around whether to alter the current 60/40 cost-sharing arrangement, which also affects retirees. Maintaining the status quo would mean employees face an increase of around $100 per month, totaling an additional $900 over the next nine months. This financial burden was significant, especially considering employees had already experienced an 18% increase in July. The board was tasked with balancing the immediate financial needs of employees with the long-term budgetary implications for the town.

The board examined the potential for the town to absorb more of the increased costs, which could alleviate pressure on employees but also risk setting a precedent for future budgetary expectations. Some members expressed concerns about the feasibility of repeatedly asking taxpayers to cover additional expenses, particularly when private sector employees face similar insurance cost increases.

In exploring alternatives, the board considered options such as the Group Insurance Commission (GIC) and the Massachusetts Interlocal Insurance Agency (MIIA), which might offer plans with different cost structures. However, there were concerns about the quality and coverage of these alternatives compared to the current offerings, which are noted for having no deductibles. Despite these considerations, the board leaned towards maintaining the current contribution rates to avoid further complicating future budget comparisons and data analysis.

Beyond health insurance, the meeting addressed other topics. The board received updates on various infrastructure projects, including the Route Five water and sewer project and the Mountain Road 5 and 10 intersection improvements. The latter had been a source of safety concerns due to milling and inadequate signage, but collaborative efforts with Mass DOT led to timely signage and paving plans to mitigate risks.

Additionally, the board discussed the transition to quarterly water and sewer billing to better align with usage and budget needs. The new billing schedule, set to take effect in February, aims to improve the town’s financial management and provide clarity for residents. This change received unanimous support.

The board also acknowledged the resignation of Nicholas Heert from the Recreation Commission and approved new appointments to various committees, including Holland Hogland to the Open Space Committee and Cheryl Stevens as an election worker. These appointments were unanimously approved.

A notable development was the appointment of Dwayne Mian as the highway superintendent, a decision supported by positive feedback regarding his dedication and communication skills. The board also discussed the introduction of a “crew chief” position within the Department of Public Works (DPW) to establish a clearer chain of command without expanding the workforce. This role, intended as a title change rather than a new position, aims to enhance task management and coordination within the department.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.
Town Administrator:
Marlene Michonski
City Council Officials:
Diana M. Szynal, Edmund Jaworski, Greg Gagnon

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