Portsmouth Secures Health Insurance Amid SchoolCare Dispute
The City of Portsmouth has confirmed that health insurance coverage for its School Department employees remains secure amid a continuing conflict with the New Hampshire School Health Care Coalition, also known as SchoolCare. SchoolCare has threatened to halt the processing of health claims for these employees starting May 1, 2026, unless the city addresses a disputed mid-year assessment. This assessment, amounting to $1,570,605.78, falls outside the standard budgeting period. The city maintains that it is fulfilling its financial obligations under the current agreement with SchoolCare.
Operating as a pooled risk management entity, SchoolCare imposed a statewide assessment of $30 million to mitigate financial shortfalls. This unprecedented levy affected 90 school districts and municipal entities throughout New Hampshire, marking the first instance of such an assessment by SchoolCare or similar regional risk pools. This unexpected financial demand has been contested by Portsmouth, which highlights the lack of prior notification and questions the authority to impose such an assessment under existing contracts and governance documentation.
SchoolCare has reported a reserve depletion, indicating that reserves totaling approximately $29.5 million as of June 30, 2023, have been fully exhausted over three fiscal years, resulting in a deficit. Despite recognizing the financial downturn in November 2024, SchoolCare maintained stable rate levels for the fiscal year 2025-2026, failing to account for these financial risks. Consequently, unforeseen costs have been shifted to taxpayers, rather than adjusted prospectively in premiums shared between employers and employees.
The city has engaged in negotiations to resolve the issue, including proposing a settlement plan that involves immediate payment of the operational deficit and a phased approach to reserve replenishments. SchoolCare has declined these proposals, insisting on full payment of the invoiced assessment to continue claims processing. This impasse may involve the Secretary of State’s office as a mediator, as SchoolCare has shown potential willingness to consider input through this channel.
Portsmouth’s proposed settlement aims to comply with RSA 5-B requirements, balancing the risk pool's viability with taxpayer responsibility. The City of Portsmouth intends to update both the city council and school board on March 16, 2026, regarding any advancements in negotiations and the involvement of Secretary of State David Scanlon. Mayor Deaglan McEachern assured the city’s commitment to its employees, ensuring uninterrupted health insurance coverage throughout these discussions.