The October meeting of the Hudson Budget Committee featured a presentation from School Board Chair Maureen Dionne regarding a sudden and unexpected invoice from the district’s nonprofit healthcare benefits provider, SchoolCare.
“Effectively, I’m here to provide information and some details on that invoice the school district received this morning,” said Dionne. “We wanted to make you aware and work together to find the solution that has the least amount of impact on taxpayers and the least amount of impact on district employees.”
Dionne explained that Hudson School District employees receive their healthcare benefits through SchoolCare. Along with the district, all 90 members of the SchoolCare network were notified they must make a one-time payment – above and beyond existing premiums – within the next few months.
“The email was received late in the afternoon on Tuesday, Sept. 23. Between Tuesday and Thursday, we sought legal advice,” Dionne said, describing the School Board’s reaction to the invoice as “shocking.” She noted that the district remains in contact with legal counsel and state authorities. “SchoolCare conducted an audit, and their board of directors has determined that their reserves are critically low. They are in danger of being unable to pay medical claims. Because of the risk pool assessment, we have an obligation to fund those reserves.”
According to the email, SchoolCare is currently running a $4.5 million deficit. The organization hopes to eliminate that deficit and build a $30 million reserve to cover claims through 2026. Hudson’s share of the assessment is $1.4 million – one and a half times the district’s monthly contribution for 2025. The amount will accrue interest if not paid on time.
“I believe there’s probably not too many choices for school districts, but is it possible to get out of SchoolCare?” asked Committee member Donna Boucher.
Dionne responded that the district is actively exploring alternatives, but rising healthcare costs could make it difficult to find a more affordable option.
“May 1, 2026 and July 15, 2026 speak to the risk to our district employees,” Dionne explained. “If we do not pay the invoice by those dates, health claims will first be held, and then ultimately, in July, they will be denied. As anyone even a bit familiar with health claims knows, when those get denied, there is a higher end-cost.”
The Budget Committee asked how the district planned to fund the invoice. Dionne indicated that using leftover funds from the 2025 budget was the preferred option. Originally, the School Board had voted to return unused money to taxpayers. The Budget Committee would need to approve the request to redirect those funds.
“One of the things that bothers me is that if SchoolCare paid out the claims, they’d only need the $4.5 million they’re in the hole,” said Committee member Shawn Jasper. “Instead, they’ve chosen to say, ‘We need to immediately build our reserves to 12%.’ If they have the ability to issue a new bill at any time, then there’s no reason to immediately build the reserves. There should be a real pushback on that. If you did the $4.5 million, Hudson’s share wouldn’t be very much. They’re probably in the rate-setting mode right now, because what the statute requires is that the rates be set for the next calendar year. Those rates have to be out very shortly, and they could build in those reserves.”
Other Committee members expressed concern about SchoolCare’s compliance with state law.
“Has anyone gone through RSA sections 5-B:5 and confirmed that SchoolCare has actually followed the requirements they’re supposed to follow in terms of their annual evaluations, public hearings, and those sorts of things?” asked Committee member Bob Wherry.
Dionne said the School Board had asked the same question.
“The information we’ve received from SchoolCare is that yes, they have,” she said. “I plan to follow up with our attorney again.”
