NORTH ADAMS, Mass. — Health insurance costs for employees in 25 towns and six regional school districts will rise by 16 percent in fiscal year 2026.

 

The board of the Berkshire Health Group on Monday morning voted to increase the rate for the year that begins on July 1 by that amount, a move that is sure to color budget conversations in all of the municipal entities that participate in the joint purchase group.

 

The 7-3 vote followed a lengthy discussion about the factors driving up the cost of health care, the impact those costs are having on similar municipal and private health insurance providers and the need to maintain a healthy reserve for Berkshire Health Group.

 

As recently as three years ago, at the end of fiscal year 2021, the BHG surplus stood at just more than $22 million. For the current fiscal year, it is projected to be a little less than $12 million, according to one of the documents presented at Monday's board meeting.

 

And higher costs continue to eat away at that number.

 

"The health fund lost over a million dollars in the month of November," BHG Treasurer Jim Kelley told the group assembled in the conference room at McCann Tech.

 

Kelley told the board that 15 or 20 years ago, the group had $5 million in investments, but after two consecutive years of seeing costs outrun premiums by around 20 percent, the group needed to send a special assessment to its membership during a fiscal year.