Marion, Mattapoisett approve $1.4 million for Old Rochester health insurance shortfall

Two of the three Old Rochester Regional School District member towns voted on a measure to provide one-time funding to the district to cover unexpectedly high health insurance costs at their respective Town Meetings.

While Marion and Mattapoisett voters approved funding their part of the approximately $2 million shortfall at seperate Town Meetings on Monday, May 11, they questioned how the deficit developed and how to prevent similar costs in the future.

Mattapoisett will pay about $730,00 while Marion will pay about $680,000. Rochester voters will be asked to approve spending $716,000 on the deficit next week. The school committee also approved putting $500,000 of the district’s savings towards the deficit.

While it has since changed insurance providers, the district participated in the Gateway Health Group, a self-funded insurance group in which members split the cost of claims, up until this school year. 

A broker from the health group quoted the district a rate the district then budgeted for, but the cost of medical claims this school year were significantly higher than anticipated.

In Marion, April Nye, an Old Rochester Regional School Committee member, and district Superintendent Michael Nelson pointed to the group’s broker as the source of the discrepancy. 

“It's their expertise to advise the (Gateway) board on a rate that they believe will cover their premium costs and all other related costs. Ultimately, their rate setting that the board accepted has failed,” Nelson said.

Several Marion residents said they supported funding the deficit but wanted the district to find ways to recuperate the money.

Patricia DeCosta, of Marion, questioned why the insurance group didn’t cover the additional cost and if it would be possible for the town to get its money back once the proposition was approved. 

“My husband was in business. If he quoted a price and it was wrong, we ate it,” DeCosta said. “What are these insurance companies doing? Are we going to get any money back from this?”

Nye and Nelson said full legal action will be pursued to try to get the money back. Nelson said the district will be “holding anyone accountable that had a part in setting rates that have failed the district.”

In the meantime, both said the deficit needed to be funded to ensure employees receive healthcare until the district changes to Mayflower Health in July.  Nelson said some employees have already experienced coverage interruptions and even received debt collection notices. 

In Mattapoisett, Select Board Chair Tyler Macallister said he did not support funding the deficit and voted against it during a previous Select Board meeting. He said Mattapoisett is bailing out the district for a mistake it made and is asking taxpayers to pay the price. 

“There's no one being held accountable at the school at this point, and this is your money going to the schools to save them,” Macallister said. “I just want you to think about that when you vote on this tonight.” 

Frances-Feliz Kearns, a member of the Old Rochester Regional School Committee, said it was important to pay off the deficit. Otherwise, current teachers and retired staff members must pay out of pocket for previous medical treatment that went uncovered. 

Mattapoisett resident Don Flemming said he would rather the town help pay for insurance than make teachers and staff pay. 

“I ask that you support Old Rochester and especially our students and teachers,” Fleming said. “We all know the cost of insurance today and the burdens so let's not destroy students and staff and vote in favor of this.”