Berkshire Health Group to See 8 Percent Rate Hike in FY23

By Stephen DravisiBerkshires Staff
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WILLIAMSTOWN, Mass. — The Berkshire Health Group Board of Directors on Monday voted to raise health insurance premiums by 8 percent for the fiscal year that begins on July 1 while offering a one-month "premium holiday" in FY23.
 
By a vote of 6-2 with one member abstaining, the board decided to raise rates for the 31 municipal entities served by the group. The 11 voting members of the group include the towns of Adams, Great Barrington, Lanesborough, Lenox and six regional school districts, Berkshire Hills, Central Berkshire, Hoosac Valley, Mount Greylock, Northern Berkshire Regional Vocational (McCann Tech) and Southern Berkshire; BHG also serves 20 smaller municipal entities who are affiliated with the joint purchasing group.
 
The board was advised by a representative from Gallagher Benefit Services that a rate hike was prudent to account for inflated health costs and a rise in claims after a fall-off in people accessing providers for non-emergency services during the height of the COVID-19 pandemic.
 
The board's consultant recommended four possible courses of action: an 8 percent increase with no premium holiday, an 8 percent increase with a premium holiday, a 4 percent increase with the FY23 funding shortfall partially offset by the group's reserve or no premium increase with the increased FY23 costs entirely offset by reserves.
 
"Option 3 is really the direction that I would point to to consider because it's the best of both worlds," Berkshire Health Group Treasurer James Kelley advised the board. "It leaves the trust in an extremely strong position with a lot of flexibility down the road. It also allows you locally to be in a manageable fiscal situation."
 
BHG Board Chair Sharon Harrison, the business administrator in the Berkshire Hills Regional School District in Stockbridge, told her colleagues that the proposed 8 percent increase was a shock to her but a one-month holiday from paying premiums would offset the near-term hike and allow the group to avoid larger rate increases down the road.
 
It has been a couple of years since Berkshire Health Group has passed a rate increase on to its member municipal entities. Last January, the board voted to keep rates level and give a one-month premium holiday in June 2021.
 
At Monday morning's meeting, Lenox Director of Human Resources Lyndsay Patenaude, representing the town on the board, moved that the board put off making a decision on the FY23 premium rate until representatives had a chance to put more thought into the decision. That motion failed on an 8-1 vote.
 
"My budget goes out next week, and health insurance rates are the last piece and, right now, the most important piece," Harrison said.
 
"I'd rather have more time to prepare for the worst than delay and have to end up dealing with it later, personally," Mount Greylock Regional School District Business Administrator Joe Bergeron said prior to voting on the motion to delay a decision.
 
Patenaude ended up voting in the minority against the decision to institute an 8 percent hike for FY23. So did McCann Tech Superintendent James Brosnan.
 
Brosnan said if he had his way, the group would keep rates level for FY23, knowing it has enough in reserves to cover increased costs, and deal with the rising expenditures in a future year.
 
"We can't go [to taxpayers] with, 'We're going to have a premium holiday,'" Brosnan said. "That's sort of voodoo economics. I have to fully fund my budget, as does everyone on this call. All that does with a premium holiday in May is spin that down and say, 'We have a little surplus now.' "
 
In the end, the majority of the board appeared swayed by Harrison's argument in favor of biting the bullet on an 8 percent increase in the coming fiscal year in order to avoid much larger hits down the road.
 
She referenced decisions the board made in the early part of the last decade not to increase the rate and instead use reserves. Those decisions led to "an almost 15 percent increase in one year" to bring the rates in line with actual costs, Harrison said.
 
"Right now, I'm feeling once bitten, twice shy," Harrison said. "I'm feeling we're at a point now where the rate increase is the rate increase, and we don't want to see 14 or 15 percent the next year."
 
Harrison, Hoosac Valley's Erika Snyder, Adams' Crystal Wojcik, Central Berkshire's Greg Boino, Southern Berkshire's Chris Desjardins and Bergeron voted in favor of the increase. Williamstown's Rachel Vadnais abstained from the vote. The towns of Great Barrington and Lanesborough did not have a representative voting at the virtual meeting.
 
In a separate vote Monday, the board decided unanimously on no increase in the group's dental premium for FY23.
 
An earlier version of this story said the premium holiday the Berkshire Health Group board voted at its Jan. 24 meeting was for fiscal year 2022. The board's vote was to give members the break on premiums for one month in FY23.

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Guest Column: Full Steam Ahead: Bringing Back the Northern Tier Passenger Railroad

by Thomas HuckansGuest Column

You only need a glance outside to see a problem all too familiar to Berkshire county: closing businesses, a shrinking population, and a stunning lack of regional investment.

But 70 years ago, this wasn't an issue. On the North Adams-Boston passenger rail line before the '60s, Berkshires residents could easily go to Boston and back in a day, and the region benefited from economic influx. But as cars supplanted trains, the Northern Tier was terminated, and now only freight trains regularly use the line.

We now have a wonderful opportunity to bring back passenger rail: Bill S.2054, sponsored by state Sen. Jo Comerford (D-Hampshire, Franklin, and Worcester), was passed to study the potential for restoring rail from Boston to North Adams. In the final phase of MassDOT's study, the project is acquiring increased support and momentum. The rail's value cannot be understated: it would serve the Berkshire region, the state, and the environment by reducing traffic congestion, fostering economic growth, and cutting carbon emissions. The best part? All of us can take action to push the project forward.

Importantly, the Northern Tier would combat the inequity in infrastructure investment between eastern and western Massachusetts. For decades, the state has poured money into Boston-area projects. Perhaps the most infamous example is the Big Dig, a car infrastructure investment subject to endless delays, problems, and scandals, sucking up $24.3 billion. Considering the economic stagnation in Western Massachusetts, the disparity couldn't come at a worse time: Berkshire County was the only county in Massachusetts to report an overall population loss in the latest census.

The Northern Tier could rectify that imbalance. During the construction phase alone, 4,000 jobs and $2.3 billion of economic output would be created. After that, the existence of passenger rail would encourage Bostonians to live farther outside the city. Overall, this could lead to a population increase and greater investment in communities nearby stops. In addition to reducing carbon emissions, adding rail travel options could help reduce traffic congestion and noise pollution along Route 2 and the MassPike.

The most viable plan would take under three hours from North Adams to Shelburne Falls, Greenfield, Athol, Gardner, Fitchburg, Porter, and North Station, and would cost just under $1.6 billion.

A common critique of the Northern Tier Rail Restoration is its price tag. However, the project would take advantage of the expansion of federal and state funds, namely through $80 billion the Department of Transportation has to allocate to transportation projects. Moreover, compared to similar rail projects (like the $4 billion planned southern Massachusetts East-West line), the Northern Tier would be remarkably cheap.

One advantage? There's no need to lay new tracks. Aside from certain track upgrades, the major construction for the Northern Tier would be stations and crossings, thus its remarkably short construction phase of two to four years. In comparison, the Hartford line, running from Hartford, Conn., to Springfield spans barely 30 miles, yet cost $750 million.

In contrast, the Northern Tier would stretch over 140 miles for just over double the price.

So what can we do? A key obstacle to the Northern Tier passing through MassDOT is its estimated ridership and projected economic and environmental benefits. All of these metrics are undercounted in the most recent study.

Crucially, many drivers don't use the route that MassDOT assumes in its models as the alternative to the rail line, Route 2. due to its congestion and windy roads. In fact, even as far west as Greenfield, navigation services will recommend drivers take I-90, increasing the vehicle miles traveled and the ensuing carbon footprint.

Seeking to capture the discrepancy, a student-led Northern Tier research team from Williams College has developed and distributed a driving survey, which has already shown more than half of Williams students take the interstate to Boston. Taking the survey is an excellent way to contribute, as all data (which is anonymous) will be sent to MassDOT to factor into their benefit-cost analysis. This link takes you to the 60-second survey.

Another way to help is to spread the word. Talk to local family, friends, and community members, raising awareness of the project's benefits for our region. Attend MassDOT online meetings, and send state legislators and local officials a short letter or email letting them know you support the Northern Tier Passenger Rail Project. If you feel especially motivated, the Williams Northern Tier Research team, in collaboration with the Center for Learning in Action (CLiA), would welcome support.

Living far from the powerbrokers in Boston, it's easy to feel powerless to make positive change for our greater community. But with your support, the Northern Tier Rail can become reality, bringing investment back to Berkshire County, making the world greener, and improving the lives of generations of western Massachusetts residents to come.

Thomas Huckans, class of 2026, is a political science and astronomy major at Williams College, originally from Bloomsburg, Pa.

Survey: This survey records driving patterns from Berkshire county to Boston, specifically route and time. It also captures interest in the restoration of the Northern Tier Passenger Rail. Filling out this survey is a massive help for the cause, and all responses are greatly appreciated. Use this link.

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