Members of the Hampshire County Group Insurance Trust (HCGIT) voted 55-27 to increase health insurance rates by 12.48% in fiscal year 2027, with changes to plans allowing for a smaller rate hike in comparison to a potential 16% increase.
The vote will result in increases for the year ranging from $126 to $360 for members with HMO (Health Maintenance Organization) plans, and $147 to $402 for members with PPO (Preferred Provider Organization) plans beginning July 1.
The trust also implemented changes to the plans that include introducing deductibles and changing contracts with pharmaceutical providers. Representatives with HCGIT’s insurance consultant, the Hilb Group New England, said that had these changes not been made, rates would need to be increased by 16% to cover expenses.
“We’re trying to balance your members’ needs with the stability of the trust,” said Sue Shillue, managing director of the Hilb Group’s Hanover branch.
Due to rising pharmaceutical claims, largely associated with GLP-1 drugs, the trust implemented a mid-year rate increase of 20% that took effect in October, after having already increased the rate by 18% heading into fiscal year 2026. The decision was made to help the trust cover expenses and rebuild its reserves, which had dropped from $20 million in January 2024 to less than $5 million by July 2025.
Shillue said that eliminating coverage of GLP-1 drugs for weight loss has saved the trust approximately $4 million, but pharmaceutical costs continue to soar and the trust needs to adapt to “where the market is and where it’s going.”
In planning for FY27, David Sirowich, executive vice president of PBIRx, the trust’s pharmaceutical consultant, said the company did an analysis of the market and reviewed what different medications would cost under different plans. Sirowich said keeping the trust’s existing provider, CVS, but switching to a contract negotiated through the employer health coalition, would provide the HCGIT with more than $3 million in savings.
“What this means is it’s the same exact thing you have today, just with different pricing,” Sirowich said.
He explained that the current contract was negotiated with a rate just for the HCGIT trust, but by joining the employer health coalition, which represents groups across the country, the HCGIT can access better rates.
Danielle Chaplick, with the Hilb Group, added that the trust is advised to continue with Blue Cross Blue Shield of Massachusetts as its plan carrier, but to make changes to its plans. The trust will be implementing a $250 deductible for individuals and $500 deductible for families in FY27.
Copays are also set to increase. Office visits to specialists will increase from $35 to $60, inpatient care will increase from $250 to $500 and outpatient surgical copays will increase from $150 to $250.
Jan Ameen, executive director of the Franklin County Solid Waste Management District, asked about the reasoning behind the increases, particularly for inpatient care.
Shillue said that statistically, most members reach their deductible, and so they will not have to pay that deductible on that visit, just the $500 copay. She added that the increase is necessary, as inpatient care is very expensive and the HCGIT is trying to rebuild its reserves and better cover expenses.
Cathy Levreault, representing Athol, asked what would happen if employee unions within the towns do not accept the changes, and if they would then be kicked out of the trust.
Shillue said that while it’s the responsibility of the member units to negotiate with their employees to approve the plans, under Massachusetts General Law Chapter 32, Sections 21-23, if unions don’t agree, a three-person review panel can approve a new plan and rates.
“We certainly understand the impacts on members. … Our goal is to find the reasonable middle,” Chaplick added.
Ashfield representative Paul McLatchy III asked if the 12.48% increase would be enough, citing how in recent years, the trust did not raise rates enough to cover costs heading into a new fiscal year and was forced to implement a mid-year rate increase.
Chaplick said the Hilb Group had modeled best-case and worst-case scenarios for claims and is confident that the 12.48% increase will be enough to cover expenses while helping rebuild the trust’s reserves.
“That is our No. 1 goal: to not have the trust operating on a month-to-month basis,” Chaplick said.
Members of the trust ultimately voted to approve the rate increase and plan changes, with representatives of Easthampton, Franklin County Technical School, Granby, Shutesbury, Whately, Westhampton, Williamsburg, Leverett and others voting against the increase.