N.H. FF Union Sues Insurance Provider

March 12, 2010
LONDONDERRY, N.H. -- A firefighters union has filed a lawsuit against the organization that administers its health insurance plan. This is the second time the Professional Firefighters of New Hampshire has filed suit against the Local Government Center. This time, it's claiming the LGC is not using taxpayer dollars for their designated purpose.

LONDONDERRY, N.H. --

A firefighters union has filed a lawsuit against the organization that administers its health insurance plan.

This is the second time the Professional Firefighters of New Hampshire has filed suit against the Local Government Center. This time, it's claiming the LGC is not using taxpayer dollars for their designated purpose.

"We believe that the Local Government Center, in particular the Health Trust Division, is overcharging us for our health care," said union member Dave Lang. "It's overcharging the taxpayers, it's overcharging our members and retirees, and we're concerned they may be misdirecting some of the funds."

Lang claimed that that one penny on every dollar that is contributed by the more than 60,000 members in the insurance pool is being used by the LGC to fund projects not related to health care. He said that the organization is sitting on millions of dollars in cash reserves.

"They should just simply provide health care," he said. "We'll pay for health care. We don't mind paying reasonable costs for health care."

The firefighters union successfully sued the LGC to get salary records from the nonprofit agency.

Maura Carroll, interim executive director of the LGC, said the organization uses all of the money properly.

"I'm disappointed that we couldn't have a conversation before we go into expensive litigation," she said.

Carroll said the LGC has a strategic plan that will ultimately lower health costs for contributors, and any reserves are used to stabilize costs and prevent wild swings in premiums.

"I've worked here in the organization for a long time, and our board of directors takes every decision very seriously," she said. "We've had appropriate legal advice over time, and we have dismissed all of the points made in their allegation."

The LGC has yet to formally respond to the lawsuit, and no court date has been scheduled.

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