City proposes 7% increase in employee health insurance contributions amid rising claims costs

During the recent Fort Worth City Council Budget Work Session, significant discussions centered on the city's employee health benefits and the rising costs associated with medical claims. The city is proposing a 7% increase in contributions to its self-funded health insurance plan for the upcoming fiscal year, driven by a notable surge in claims costs, which jumped by $16 million from 2023 to 2024.

City officials highlighted the challenges posed by complex medical conditions, particularly cancer treatments, which have led to an increase in high-cost claims. The city has seen a rise in claims exceeding $250,000, with 31 such claims reported in 2024, up from 28 in 2023. This trend underscores the growing financial strain on the city's health insurance budget, which currently covers nearly 11,000 employees.

To address these challenges, the city is also considering a 3% increase in employee contributions. This adjustment aims to help balance the budget while managing the rising costs of healthcare. Additionally, the city is exploring wellness initiatives, including a proposal to incentivize preventive health screenings by offering employees wellness days instead of cash payouts. This initiative aims to encourage healthier lifestyles and potentially reduce future claims.

Council members expressed concerns about the financial implications for employees, particularly those living paycheck to paycheck. The discussion highlighted the importance of balancing fiscal responsibility with the well-being of city employees.

As the city navigates these complex issues, the proposed budget adjustments and wellness programs reflect a commitment to supporting employee health while addressing the financial realities of rising healthcare costs. The council's decisions in the coming weeks will be crucial in shaping the future of employee benefits and overall community health in Fort Worth.