Hadley IAC Chooses Formal PEC Process for Health Insurance Negotiations

HADLEY — April 2, 2026 — Hadley's Insurance Advisory Committee launched formal Public Employee Committee bargaining Thursday over a revised health insurance rate proposal that lowers a projected 16.08 percent increase to 12.48 percent, with higher deductibles absorbing the difference. IAC Chair Ken Richards led the committee to reject a looser "friendly negotiation" approach recommended by the Hampshire County Group Insurance Trust in favor of the statutory PEC process, citing the tight timeline before May 1 open enrollment. Combined savings to the town and employees from the lower-than-expected rate are estimated at just under $100,000, with employees saving roughly $35,000 compared to the original projection. A member identified as Dan noted that the last time the town changed employee benefits, around 2017, workers received a one-month insurance premium holiday under Massachusetts General Law Chapter 32B. The committee's first formal executive session is set for Tuesday, April 7, at 6 p.m. at the Hadley Senior Center, with the first PEC bargaining session scheduled for April 14 via Zoom; Chief Mason and Dr. McKenzie are expected to join formal sessions.