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$1.7M SchoolCare Assessment

Latest

Moving this to On Hold. This is the most recent update form the June 10, 2026 City Manager’s Report:

“In April 2026, the Dover School District and Dr. Christine Boston filed an action in Strafford County Superior Court seeking a preliminary injunction and permanent relief concerning SchoolCare’s threat to stop paying covered health claims of the District’s employees, spouses, dependents, and retirees. SchoolCare filed a motion to dismiss for lack of jurisdiction and an objection to the plaintiffs’ motion for preliminary injunction. The New Hampshire Secretary of State filed a motion to intervene and a motion to dismiss for lack of jurisdiction. NEA-NH filed a motion to intervene on behalf of unionized school employees. The City of Portsmouth filed a motion for leave to file an amicus brief. HealthTrust filed a motion for leave to file an amicus brief. On April 24, 2026, the Superior Court (Curran, J.) held a preliminary injunction hearing. On April 30, 2026, the Court granted the plaintiffs’ request for a preliminary injunction. The two motions to dismiss remain pending. In May 2026, the plaintiffs issued a set of discovery requests to SchoolCare and a set of discovery requests to the Secretary of State (intervenor).”

SchoolCare is an insurance risk pool that provides health insurance benefits to 90 member school districts across New Hampshire. It assessed its member schools $30 million to cover a shortfall caused by higher-than-expected medical claims that depleted its reserves.

Why it Matters

Dover has been assessed $1.7 million by SchoolCare. The assessment was unexpected, and there is no planned budget item to cover it. Dover disputes SchoolCare’s authority to impose the charge. Portsmouth, assessed $1.57 million, has taken the same position. SchoolCare has threatened to stop paying claims — even though Dover has continued to pay premiums — if payment terms are not agreed upon by May 1.

Regardless of any financial outcome, maintaining continuous health insurance coverage for school employees is the top priority.

The Big Picture

SchoolCare is a health insurance risk pool owned by roughly 90 NH school districts and municipal entities. When medical and pharmacy claims far exceeded projections, SchoolCare issued a one-time $30 million assessment to its members in late 2025. It arrived mid-year, outside normal budget cycles and without warning.

Most districts scrambled to cover the cost by draining reserves or tapping year-end surpluses. Others have faced harder choices. Portsmouth cited that Somersworth school employee layoffs were driven in part by the assessment. Farmington’s school board has been weighing layoffs to address a $330,000 deficit partly attributed to SchoolCare. In Concord, the assessment compounded an already severe budget shortfall, contributing to discussions about cutting dozens of positions — though the district’s financial pressures extend well beyond SchoolCare.

Dover and Portsmouth are the two holdouts among 90 members, disputing whether SchoolCare has the legal authority to impose charges never approved in district budgets.

Take Action

The NH Secretary of State will join the City Council and School Board for a joint workshop on Thursday, April 16. at 6:00 pm. Dover residents are encouraged to attend and add your input during the public forum. You can also email your City Council and School Board at any time.