N.H. says group that administers insurance for cities owes $100 million

Aug 4 2011

State investigators say the Local Government Center is required by law to return the surplus to the cities.

New Hampshire Public Radio: State Regulators Say LGC Violated the Law
The Secretary of State has completed its investigation into the Local Government Center, an organization that provides insurance to 76 thousand county and municipal employees around the state. State regulators charge the Local Government Center, or LGC, has violated multiple state statutes, and owes cities and towns upwards of $100 million (Gorenstein, 8/2). 

The Associated Press/Boston Globe: Dispute Over NH Insurance Plans To Go To Hearing
The report says the center is required by law to return a surplus of more than $100 million in taxpayer money to cities and towns; illegally altered its nonprofit corporation structure to merge with limited liability companies; and transferred part of its surplus to subsidize a worker's compensation insurance pool at the expense of two others, among other allegations (McCormack, 8/2).

Manchester Union Leader: Report Says LGC Owes Taxpayers $100 Million
LGC administers health, property and worker compensation insurance plans for public employers like towns, cities and school districts. It paid claims of $356 million in 2010. LGC executive director Maura Carroll said the insurance operations are directed by representatives of member towns and school districts who are intent on running lean and solvent plans to get the best value for taxpayers. "We are good stewards of the money that is in our hands," Carroll said (Fahey, 8/2).

Meanwhile in nearby Massachusetts, another municipality is considering switching health benefits for city workers.

The Boston Globe: Lexington Looking At Health Insurance Changes For Union Workers
Lexington [Mass.] officials are looking into whether they should take advantage of a new state law that would enable the town to switch health care for public employees into the state's Group Insurance Commission. The new state law was approved in July and gives cities and towns the ability to shift their workers into the state's Group Insurance Commission (GIC) in an effort to save money on health care or switch to another lower-cost plan after a monthlong discussion period with unions (Parker, 8/2).