NK officials hit with significant increase in employee insurance costs

NORTH KINGSTOWN, R.I. — North Kingstown officials said they're facing a new challenge in balancing next year's budget due to some late-breaking news from the Rhode Island Interlocal Trust and Risk Management Agency.

The agency contracts with Blue Cross to provide health, dental, and work-related injury insurance to town employees, including police, fire, teachers, and town office workers.

As Town Manager Ralph Mollis explained in his biweekly report to the town council, the agency is expected to have the town pay much more for insurance for their employees than last year. The rate increase for health care premiums will be 10.16 percent, dental insurance specifically will increase by 6.29 percent, and work-related injury will be going up by nearly 50 percent.

Mollis said the high rate increases are partially due to industry trends, since overall Blue Cross healthcare premiums that are not contracted through the trust are projected to increase by 13.5 percent. He also said the town recently experienced several "significant high claims form employees who had significant illnesses."

Mollis said the news didn't get to town officials until Thursday, March 20, two days after they held their all-day budget meeting on Tuesday, March 18. Mollis called that meeting "very productive and successful," but also acknowledged that the budget has continued to be challenging.