CONSIDERATION OF AND ACTION ON
Resolution R2026-49 Authorizing the Difference Card, a Medical Expense Reimbursement Plan (MERP) Arrangement, to Enhance Employee Health Plan Designs for FY2027 by Offsetting Certain Out of Pocket Medical Expenses; Authorizing the City Manager or Designee to Execute All Required Documents
At the September 8, 2026 Special Called Meeting, staff requested City Council's approval of the FY2027 renewal with Blue Cross Blue Shield of Texas (BCBSTX). The proposed renewal was 57.4%, but through significant plan redesign, the additional cost should range between 11% and 35%.
Upon approval of a high-deductible health plan with Blue Cross Blue Shield of Texas (BCBSTX), the Difference Card/MERP arrangement is presented as an option to provide employees with employer-funded assistance toward eligible out-of-pocket medical expenses under the redesigned high-deductible health plan. The Difference Card will administer the Medical Expense Reimbursement Plan (MERP), providing employees with funds to help offset eligible deductibles, coinsurance, and other qualifying medical expenses. This arrangement is intended to reduce the financial impact of the higher-deductible plan on employees while allowing the City to achieve significant savings in overall health plan costs.
Resolution and detailed plan documents and contract terms will be presented at the special called meeting. Rod Insurance Group will present.
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