Concord, N.H. — As the New Hampshire House of Representatives prepares to cast a critical vote regarding the future of state risk pool groups that manage insurance for governmental units, a legal dispute has emerged involving Secretary of State David Scanlan and HealthTrust, the state’s largest insurance pool. During a recent court deposition, Scanlan’s legal counsel accused HealthTrust Executive Director Scott DeRoche of providing misleading information about the organization’s legal authority.
Richard Gagliuso, representing Scanlan, challenged DeRoche’s assertions about HealthTrust’s nature, stating that the organization’s claims about its status as a “self-insurer” providing “fully insured” coverage to its member municipalities could be misleading. Gagliuso expressed concerns over the clarity of HealthTrust’s coverage offerings and the responsibilities of the political subdivisions involved.
In the deposition, DeRoche characterized HealthTrust as a self-insuring body that offers fully insured health plans to various government entities, including towns, cities, and school districts. Gagliuso responded critically, arguing that HealthTrust appears to contradict its claims of self-insuring fully insured health coverage, raising questions about the legal basis for such statements.
Scanlan’s legal team insists that HealthTrust and similar risk pools operate as self-insured plans under state statutes enacted in 2010, which placed them under the regulatory authority of the Secretary of State’s office. On Thursday, lawmakers will vote on amended legislation (SB 297) that could permit HealthTrust and three other risk pools to determine if they prefer to be overseen by the Insurance Department.
HealthTrust officials have expressed support for the proposed legislation, asserting that it would enhance the risk pool environment, benefiting both New Hampshire’s governmental entities and taxpayers. In a statement, HealthTrust emphasized the proposed changes would contribute to maintaining a sustainable risk pool framework.
In contrast, Scanlan opposes the amendments and backs an original proposal from Senate President Sharon Carson, which aims to extend his office’s regulatory power over the financial operations of these risk pools. Scanlan contended that HealthTrust and another risk pool were nearing insolvency due to failure to increase rates to retain business, a claim that HealthTrust leaders have denied.
The New Hampshire Interlocal Trust, the other risk pool mentioned by Scanlan, has opted to exit the market, leading a judge to appoint a receiver to manage its financial situation. In response to Scanlan’s legislative proposals, HealthTrust’s board has warned that the organization may dissolve if the changes are enacted.
Gagliuso issued a statement urging HealthTrust to refrain from making what he termed false claims about its coverage to the state’s political subdivisions, calling for a retraction of any misleading statements in public circulation. DeRoche, defending his earlier statements, maintained that HealthTrust has consistently provided the same model of coverage for four decades, emphasizing fixed health coverage costs that public sector employers and taxpayers have come to rely on.
This legal entanglement stems from a Right-to-Know Law request filed by the city of Rochester, which sought specific claims data from HealthTrust as it explored the possibility of self-insuring. HealthTrust declined the request, arguing that disclosure could threaten its competitive standing in the risk pool market.
In response, the Senate Finance Committee recently included a requirement in its proposed budget trailer bill mandating that risk pools and insurers disclose anonymized claims information, signaling ongoing scrutiny of these entities’ operations.
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