The Londonderry School District will receive $65,263.22 and the Town will receive $267,306.71 for a total of $332,569.93 in reimbursements from the New Hampshire Local Government Center (LGC).
A message on the LGC website from George Bald, interim executive director, states letters were mailed to each HealthTrust member announcing “their share of HealthTrust’s $33.2 million of surplus required by Hearing Officer’s Order in the Bureau of Securities Regulation administrative proceeding.”
Londonderry School District Business Administrator Peter Curro, who is also chairman of the HealthTrust Management Board for LGC, said the disbursements were required because LGC had a figure in surplus set aside that was larger than the Bureau considered it should have.
“The Bureau said that there was too much set aside for surplus and that the $33.2 million should be reimbursed,” Curro said.
“The Hearing Officer calculated this return based on our calendar year 2010 audited financial statements,” Bald said. “While LGC and HealthTrust continue to appeal aspects of the order, the HealthTrust Board is committed to return this $33.2 million to its members. The order requires this return to occur prior to Sept. 1, 2013 and according to the order, only HealthTrust members who participated in the medical and/or dental program in August 2012 and had contributions for those coverages in 2010 are eligible to participate in the return.”
Bald said HealthTrust plans to make the return by check on Aug. 27, 2013.
“A small number of former HealthTrust members have challenged the distribution set by the order because they failed to qualify for the return of surplus,” he noted. “They also asked the Court to stay, or place on hold, the distribution of the 2010 surplus until their challenge is decided. HealthTrust will follow any future order regarding the system and timing of the distribution.”
Bald said that applying the language in the Hearing Officer’s Order, HealthTrust calculated the returns of the 2010 surplus based on each individual group’s proportional share of the total 2010 Health Trust contributions. Acting Londonderry Town Manager William Hart said the town is still looking into what would be the best way to handle the money.
Curro said the school district money will be disbursed at an 80 percent/20 percent distribution. “When an employee goes to the doctor, the district pays 80 percent and the employee pays a 20 percent copay, so that’s what will probably happen, with the district keeping 80 percent and the employees 20 percent, but we’re still looking into it,” Curro said.
According to Curro, this payment is separate from the $17.1 million that is due to be reimbursed by LGC because it took the money from the members’ health insurance risk pool to fund a worker’s compensation program. Those payments, which have not as yet been determined, are due Dec. 1.