HealthTrust Responds to SB 297 Financial Position Testimony

Posted: 3.5.2025

HealthTrust Responds to SB 297 Financial Position Testimony

In yesterday’s hearing on SB 297, and subsequently quoted in media articles, certain testimony characterized HealthTrust’s financial position as being “in danger of insolvency.” This testimony requires critical clarification. Please see the statement below from HealthTrust Executive Director Scott DeRoche.

Additionally, a full copy of HealthTrust’s written testimony on SB 297 may be found at the following link. Copies of HealthTrust’s FY2024 Audited Financial Statements with Required Supplementary Information may be found here.

Statement from Executive Director Scott DeRoche:

“Several inaccurate and misleading statements and materials were shared at the March 4, 2025 hearing before the Senate Finance and Election Law & Municipal Affairs Committees on SB 297. This bill impacts New Hampshire’s nonprofit providers of health, workers compensation, and property liability coverage to municipalities, schools, counties, and public sector employees.

First, the claim that HealthTrust is in danger of insolvency within the next few months is false. Broad brush comments such as these are damaging and can create fear amongst public sector workers, who play critical roles in serving New Hampshire communities.

HealthTrust is not in any imminent danger of insolvency. The statement made by the actuary hired by the Secretary of State’s office that HealthTrust is losing $2.5 million a month is incredibly misleading. Over the past fiscal year (FY2024), HealthTrust’s net position increased by $10 million. During the first six months of the current fiscal year (FY2025, through December 2024), HealthTrust’s net position increased by an additional $2 million.

The second claim, that HealthTrust has lost money in five of the past seven years, is also incorrect and highly misleading. It intentionally ignores the two years during COVID where HealthTrust’s revenue far exceeded claims and $57 million was returned to New Hampshire’s public sector employers.

Risk pools are not designed to make money - they are designed to manage pooled risk effectively and to provide the protection that New Hampshire’s public sector entities need. Over the last seven years (FY2018-FY2024), HealthTrust’s net position has increased during four years and decreased during three years. The last few years have been a period of extreme and hard-to-predict volatility in the health insurance market and reserves were used to cover losses.

HealthTrust is currently in the midst of a multi-year, actuarially-modeled, and Board-approved plan to replenish those reserves – a process that needs to be staged over three years so public sector employers can respond in a responsible way. This is a significant challenge, but one that is being addressed by HealthTrust through the multi-year rebuild and through other measures put into place to help reduce volatility. The Secretary, by his actuary’s own analysis, shows that the existing rebuild plan will be sufficient before the proposed effective date of the law’s contingency replenishment requirements. See page 7 of the materials presented by the Secretary of State.

Last, the assertion made by Mr. Li at the hearing that HealthTrust is intentionally undercharging public sector employers is also false. Organizations such as HealthTrust exist to serve the public sector. We are nonprofit entities. Developing rates for future healthcare costs and projecting these out 18 months or more so municipalities, schools, and other public sector entities can go through their budgeting processes is complex.

Rushing through a bill that tries to claw back funds from public sector employers and taxpayers to address potential shortfalls by creating an urgency that is not there is unwise at best and harmful at worst to the thousands of people who receive health benefits through these programs.

HealthTrust operates in a very transparent fashion and we are happy to work with the office of the Secretary of State and the bill sponsors to address this in a thoughtful and careful way. We urge members of the Senate to reach out to their municipal, school, and county leaders to get a better understanding of those this may impact to determine what might be most appropriate for legislative action in the future.”

As of April 24, 2025, a dedicated SB297 page has been added to our website. Click here to view the latest news on SB297.