Cedar Park Council Approves Switch to UnitedHealthcare for Employee Health Benefits

The Cedar Park City Council meeting held on August 28, 2025, focused on several key agenda items, primarily revolving around employee health benefits and the city's insurance plans.

The meeting commenced with a public hearing on item G1, although no attendees chose to address the council on this matter. The council acknowledged the thorough presentation provided by staff and decided to take action on this item at a future meeting.

The most significant discussion of the evening centered on item H3, presented by Tiffany Carter, the Director of Human Resources. Carter outlined updates to the city's employee group benefits, highlighting the results of recent Requests for Proposals (RFPs) for medical and prescription benefits. The current provider, Aetna, was found to be less competitive compared to UnitedHealthcare, which offered a proposal that was 7.6% lower than Aetna's renewal rate. This change would provide a broader network of providers, particularly beneficial for rural areas and the fire department.

Carter emphasized that the city operates a self-insured plan, allowing for better management of costs associated with employee health benefits. The council was informed of a projected 7.7% increase in utilization for the upcoming fiscal year, which is relatively low compared to trends seen in other municipalities.

The proposed changes include the introduction of a new mid-level plan, the Silver PPO, alongside the existing high deductible health plan and the Gold PPO. This addition aims to provide employees with more options tailored to their healthcare needs. Adjustments to deductibles and out-of-pocket maximums were also discussed, with the goal of aligning with federal requirements and market standards.

In addition to medical benefits, the council reviewed proposals for stop-loss insurance, with UnitedHealthcare again emerging as the most competitive option, potentially saving the city $157,000. The council also considered changes to the employee assistance program, with a shift from All 1 Health to Neely, which has extensive experience in providing support services.

The meeting concluded with a commitment to further evaluate these proposals and their implications for city employees, with the expectation of finalizing decisions in upcoming sessions. Overall, the discussions underscored the city's proactive approach to managing employee health benefits and ensuring competitive options for its workforce.