CONSIDERATION OF AND ACTION ON
Resolution R2026-48 Authorizing Renewal of Employee Health Plan with Blue Cross Blue Shield of Texas (BCBSTX) for FY2027 and Authorizing the City Manager or Their Designee to Execute all Relevant Documents
The City’s current medical insurance carrier, Blue Cross Blue Shield of Texas (BCBSTX), proposed a 57.4% renewal increase for FY2027 due to significant claims losses. After reviewing available options with the City’s insurance broker, Rod Insurance Group, staff recommends renewing with BCBSTX while implementing a redesigned high-deductible health plan. The redesigned plan, which may include HMO and/or PPO options, is expected to substantially reduce the renewal increase to approximately 11% - 35%, while continuing to provide employees with comprehensive medical coverage. The proposed renewal would be effective October 1, 2026, with a projected annualized maximum premium of $1,776,319.
Staff recommends approval
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