Health insurance outlook improves as projected rate hikes ease

NORWELL — Rates for town of Norwell employee health insurance are projected to be between 2.9 and 14.4% in fiscal year 2027, a smaller increase than anticipated, under the Massachusetts Interlocal Insurance Association (MIIA). The average is 8.3%.

Norwell used MIIA this year and has decided to use MIIA again, but does not yet know what its specific rate will be. Last year, the town's rate of 14% was a little under MIIA's average, said Sue Shillue, a licensed insurance consultant, in a presentation to the Select Board Feb. 4. 

MIIA had previously estimated that its fiscal year 2027 rate range would be 10 to 20%, and Shillue said that the smaller increase is thanks in part to the elimination of GLP-1s from health insurance plans as of July 1. 

“Virtually every carrier is eliminating that benefit because the cost of those drugs and the utilization has escalated so significantly that it's just become prohibitive to actually be able to cover them under the health insurance plans,” Shillue said.

MIIA also charges renewal rates, which Shillue said should be announced by Feb. 13 at the latest. MIIA is also expected to share benefit alternatives with Norwell by then.

The Select Board considered two other insurance consortiums: Southeastern Massachusetts Health Group, which declined to admit Norwell, and Mayflower Municipal Health Group.

Mayflower previously estimated that its rate increase for fiscal year 2027 would be less than 8%, but they have not yet announced official rates.

Shillue informed the Select Board that Mayflower wanted a commitment letter Feb. 5, before Mayflower could announce rates—an announcement met with laughter from the Select Board.

“That's definitely the move of a desperate person, and I'm not feeling super desperate with this news,” Select Board Member Lorenda Layne said. “This is encouraging.”

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