Regular Accounting practices of NH strike again 35 million for medicare and now new additional theft to tax-payers in NH; wait till the audit on the Department of Health and Human Services comes through .... and you thought the bads guys were the "mob" its the good ole boy network in NH.
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Report says LGC owes taxpayers $100 million
By TOM FAHEY
State House Bureau Chief
Published Aug 2, 2011 at 3:28 pm (Updated Aug 2, 2011) ShareThis
CONCORD - The battle over whether taxpayers should get back $100 million that Local Government Center insurance operations collected is headed to administrative hearings at the Secretary of State's Office.
A report by the office's Bureau of Securities Regulation states that the LGC illegally converted its non-profit health and property insurance operations into Delaware corporations in 2003. Since that time, the report alleges LGC has engaged in a list of questionable activities. They include shifting health insurance funds into unrelated operations, running a bloated reserve fund, forcing insured towns to pay New Hampshire Municipal Association dues, and creating a generous retirement plan for its workers and administrators.
LGC administers health, property and worker compensation insurance plans for public employers like towns, cities and school districts. It paid claims of $356 million in 2010.
LGC executive director Maura Carroll said the insurance operations are directed by representatives of member towns and school districts who are intent on running lean and solvent plans to get the best value for taxpayers.
“We are good stewards of the money that is in our hands,” Carroll said.
The new report provides details of more general findings contained in a preliminary version that came out in May.
BRS Attorney Earle Wingate said he will soon file a petition seeking repayment he outlined in the report. They include $40 million in surplus reserves, $20 million in diverted health insurance money and $27 million in insurance-related money that went to LGC. Wingate also wants a full accounting of how much towns and schools had to pay since 2002 in membership dues to access insurance coverage.
LGC board member Peter Crosso said that if the center is required to return $100 million, insurance premiums will see a substantial increase operations will have to cease.
While details of the dispute are complex, Wingate said the issue is fairly simple.
“This is taxpayer money. Taxpayer money is in short supply. Any amount that can be saved should be saved,” Wingate said.
Wednesday print editions of the New Hampshire Union Leader will include more extensive coverage.