Belmont Health Insurance Premiums Rise: A Shift Towards GIC Savings

Beginning July 1, health insurance premiums for town employees and retirees in Belmont will rise by 24% for the fiscal year 2026. This increase reflects national trends in healthcare expenses. Under the Harvard Pilgrim HMO, employees will pay $258 monthly for individual plans and $699 for family plans based on an 80-20 cost-sharing arrangement. Those under a 75-25 split will pay $322 and $873 for individual and family plans, respectively.

Dental coverage includes individual rates of $40 monthly with Delta Dental Premier Voluntary and $59 with Delta Dental PPO Plus Voluntary Enhanced, with employees shouldering the full cost. These rates will remain until January 1, 2027, when the town plans to join Massachusetts' Group Insurance Commission (GIC) to mitigate rising healthcare costs. The Select Board, approved on April 17, adopted an opt-out policy offering stipends for non-union employees who choose external insurance plans.

Select Board Chair Matt Taylor emphasized the necessity of the rate adjustments, projecting a decline in the town’s Health Insurance Trust Fund balance to approximately $4.3 million. The rate increase is essential to maintain the fund and address variations in healthcare costs. In March, the Select Board approved transitioning from Belmont's self-insured model to the GIC, starting January 1, 2027, to leverage cost-effective insurance for state employees and retirees.

Town Administrator Patrice Garvin highlighted potential savings of up to 5% with the GIC transition, allocating a quarter of these savings to employees through the Public Employee Committee. The GIC provides employees with a broader range of plans, allowing options to remain with Harvard Pilgrim or choose other carriers with potentially lower premiums. Select Board member Taylor Yates noted similar challenges faced by other towns, acknowledging the swift change in insurance rates compared to the previous summer.