Duxbury Town Employees to See 12% Rise in Health Insurance Premiums
Health insurance premiums for Duxbury town employees are set to rise by 12% starting June 1, as confirmed by local officials. Additionally, the town, along with its insurance provider, will no longer cover GLP-1 medications used for weight loss unless prescribed for Type 2 diabetes treatment.
On Monday, the Selectboard agreed unanimously to the proposed rate increase for fiscal year 2027, following a recommendation from Human Resources Director Jeannie Horne. Two board members, Amy MacNab and Brian Glennon, abstained due to personal connections to the health plan.
The rate adjustment will impact employees utilizing Blue Cross Blue Shield PPO and HMO plans, where 75% of costs are covered by the town and employees contribute 25%. This change will not affect retirees. Horne noted that the original rate rise was 15%, but the town leveraged its Health Insurance Trust Fund to mitigate the impact.
Driving Factors and Cost-Saving Measures
Key factors driving costs include higher service demand, increased medical procedure prices, and surges in prescription drug and provider charges. The decision to discontinue coverage for GLP-1 drugs for weight loss was described as challenging but essential. Blue Cross/Blue Shield also plans to cease GLP-1 coverage for weight management.
According to Danielle Chaplick from the Hilb Group, in 2025, a small segment of health plan participants—about 7%—accounted for a quarter of pharmacy claims due to GLP-1 prescriptions for weight management alone. Chaplick indicated that Duxbury could achieve significant savings in pharmacy costs for the upcoming fiscal year, projecting a potential reduction of 10% to 15%.
The town's FY2027 budget reported a total health insurance cost of $9.5 million—a 9.26% rise from the previous year's $8.7 million. Prior yearly increases were reported at 9% for FY26, 1.5% for FY25, and 2% for FY24. Selectboard member Mike McGee highlighted the broad impact of escalating health costs on town finances, noting the significant burden of a 12% increase.
Duxbury currently operates on a self-insured model and has been deemed cost-effective when compared to joint purchasing groups like MIIA, GIC, and Mayflower, with a five-year cost increase of 4.9%. Chaplick committed to revisiting alternative strategies and options in the future to find potential cost-saving measures. Finance Director Mary MacKinnon expressed optimism for a less severe increase next year and called for broader solutions involving state regulations or insurer partnerships to alleviate financial pressures.