While Marblehead’s budget outlook is expected to come into sharper focus in the coming days, the town’s Finance Committee received some encouraging news Monday night about rising health insurance costs.
The town’s insurance consulting firm, Hilb Group, told the committee that health insurance costs are projected to increase at a significantly lower rate than previously anticipated.
Marblehead participates in the state-backed Group Insurance Commission (GIC) health plan, with 1,298 employees and retirees enrolled.
Earlier this year, Marblehead’s Financial Director Aleesha Benjamin projected a 15% to 18% jump in health insurance costs. After a delay, the GIC is expected to release its new rates Thursday, March 4. Monday night, however, Hilb projected an increase of only 6% to 8%.
The change is largely tied to a decision by the GIC to stop covering certain GLP-1 weight-loss drugs, which have driven up costs for insurers nationwide.
Finance Committee Chair Alec Goolsby said the lower-than-expected increase could reduce the town’s projected deficit by about $800,000. Town Administrator Thatcher Kezer has estimated Marblehead’s deficit at $8.6 million.
Kezer is set to present a balanced budget Wednesday night that could include 50 staff layoffs. He is also expected to outline potential tax override options for voters.
After that, FinCom members will meet with various department heads to help them fine-tune their spending plans. The committee will meet March 28 for a full day of budget talks on what Goolsby called “super Saturday.”
Super Saturday will be a public meeting and residents are urged to attend. Details will follow soon.
