The town and its Public Employee Committee have reached a new health insurance agreement that creates an opt-out incentive program “designed to reduce future health insurance costs,” according to Town Administrator Thatcher Kezer.
Under the agreement, eligible employees who have participated in the town’s health insurance plan for at least two consecutive years and have qualifying health coverage elsewhere may voluntarily opt out of the town’s plan.
Employees who choose to waive coverage will receive an annual incentive payment of $4,000 for declining individual coverage and $8,000 for declining family coverage.
According to Kezer, each employee who voluntarily opts out is expected to generate an estimated annual savings to the town of approximately $8,900 for an individual plan and $23,900 for a family plan, based on current premium rates for one of the plans available.
“The new health insurance opt-out option is a win-win for both our employees and the town,” Select Board Chair Dan Fox wrote in an email to the Current. “It provides a meaningful financial benefit to eligible employees who have access to health coverage elsewhere, while also creating significant savings for the town. Most importantly, this agreement reflects the positive collaboration between our unions and the town — working together to find creative solutions that benefit employees while reducing costs for taxpayers.”
Employees must enroll in the opt-out plan by April 30 to receive the full annual payment on Sept. 30.
