By Split Vote, Town Continues To Pay 100% Health Insurance Premiums

WATERFORD — The town will continue to cover its workers' health insurance premiums.

The Select Board voted 3-2 on Monday to continue paying 100 percent of municipal staff's premiums in 2026.

The decision came less than a week after a handful of residents had called for an employee contribution to ease taxpayers' burden during tough economic times.

Those objections were raised again on Monday by resident Sukey Watson, who argued that some comparable towns require employee contributions.

The board majority said there was not time to properly discuss or evaluate employee contributions ahead of the annual open enrollment period, which begins Nov. 1.

Board members Sue Hayes, Vice Chair Will Jones and Tim Yarrow voted in favor, Chair Ron Gray and Wade Cochran voted against.

While Cochran had previously said "this is unheard of that we're paying 100 percent," a 2025 Vermont League of Cities & Towns survey shows that 64 responding municipalities paid 100 percent of worker premiums for individual plans.

That includes area communities like Bradford, Cabot, Danville, Peacham, Ryegate, Sheffield, and Sutton. Some local communities that did not respond to the survey, including Burke, Kirby, and Newark, also pay 100 percent.

More than 40 municipalities statewide also paid full worker premiums for two-person plans.

Overall, the VLCT survey showed that the 145 responding municipalities paid, on average, 93 percent of the premiums for individual plans.

The Select Board on Monday also voted to change insurance plans from Blue Cross Blue Shield Platinum to MVP Platimun. While the plans were virtually identical, MVP provides an estimated $14,000 savings for 2026.

While some residents had called on the board to explore less comprehensive, lower-cost plans, the board once again reasoned it was too close to the open enrollment period to discuss the matter properly.

Discussion on changes to the insurance plan began during a special meeting on Oct. 21.

At that meeting, some in attendance pushed for the town to spend less on insurance, citing greater concerns over municipal spending and the tax rate.

Assistant Town Clerk Marcel Lapierre said many residents are concerned about the tax burden and want the town to start curbing costs. "I have never seen a time where I've got a delinquent taxpayer list like what I have right now," Lapierre said. "What I'm hearing from people is they're very pissed off at the town finances. They say they are not able to pay [their tax bills]."

Resident Kathy Hodgdon said she has also heard from others in town who support reduced spending. "A lot of the people in the Town of Waterford, probably 50 percent, are on limited incomes," she said.

It is unclear how much a change in insurance plans or a reduction in the town's contribution would impact tax rates.

During the board discussion, acting Chair Will Jones said the board should consider the physical nature of highway department work and employee welfare when deciding whether to continue with a higher-priced, more generous plan.

However, Lapierre reminded the board of its obligation to residents. "You guys were elected by the taxpayers. Your responsibility is to take care of the taxpayers," he said. "I'm not speaking as an employee of Waterford. I'm speaking as a taxpayer of Waterford. It's your job to represent the taxpayers, not the employees."