Effective July 1, town employees and retirees will see a 24% increase to their health insurance rates over fiscal year 2026 — an increase reflecting the rising cost of health care nationwide.
With the Harvard Pilgrim HMO, individuals will pay $258 per month or $699 for a family plan, based on an 80-20 split, in which the employee pays 20% of the cost and the town pays 80%. Those grandfathered into a 75-25 split will pay $322 per month for an individual plan and $873 per month for a family plan.
For Delta Dental Premier Voluntary, individual employees will pay a $40 monthly rate, compared to the $99 family rate. For Delta Dental PPO Plus Voluntary Enhanced, individual monthly rates are $59 and family rates are $151. Dental coverage is entirely paid by the employee.
The rates will be in effect at least until Jan. 1, 2027, when the town plans to join the state’s Group Insurance Commission to mitigate the financial blow of rising health care costs.
On Friday, April 17, the Select Board voted to accept the opt-out policy for the current health insurance plans, which outlines stipends provided for non-union employees seeking insurance plans elsewhere. Stipends are paid monthly.
“This rate increase is shocking. It affects our employees; it affects our retirees; it affects the town, because we split the rate,” said Select Board Chair Matt Taylor. “We arrived at this rate with our health care consultant because we project that the [town’s Health Insurance Trust Fund] is going to be depleted to about $4.3 million. Given the variance in rising costs, it seems not prudent to risk having it drawn down more. We’ve been advised this rate increase is necessary to avoid drawing down the Trust further.”
In late March, the Select Board voted to enable the town to begin the process of switching from its self-insured health insurance to join the Massachusetts Group Insurance Commission (GIC), which provides and administers high-quality, affordable health insurance and other benefits to the state’s employees and retirees, according to mass.gov. Presently, Belmont is self-insured and while it offers its employees and retirees Harvard Pilgrim Health Insurance plans, the town is responsible for paying claims. The town’s Health Insurance Trust Fund helps cover the year-to-year cost fluctuations.
According to Taylor, the town has begun negotiations under Massachusetts General Laws Chapter 32B, sections 21-23, to transition to the GIC, effective Jan. 1, 2027 — the middle of fiscal year 2027. Assuming the town transitions to the GIC, the rates that represent a 24% increase will be in effect for the six months from July through December of this year. The town will then pay the GIC’s rates starting Jan 1, 2027.
Town Administrator Patrice Garvin said at the March 23 meeting that the town could see up to 5% in savings on health care costs by joining the GIC. Of the 5% in savings to the town, 25% would be returned to the employees through the Public Employee Committee process.
Also, by joining the GIC, employees are offered multiple plan options from major carriers, according to Garvin. They can remain on Harvard Pilgrim or switch to a carrier with cheaper premiums.
“We’re not the only town that has ended up in this situation this year,” said Select Board member Taylor Yates. “It is striking how quickly health insurance rates changed from last summer.”
