Amarillo City Council is set to enhance employee benefits after approving a comprehensive Request for Proposal (RFP) process for medical and ancillary services during a special meeting on September 16, 2025. The RFP, which attracted 28 vendor responses, aims to optimize the city’s employee benefits program, ensuring better service delivery and cost efficiency.

The evaluation committee, comprising key city officials, meticulously reviewed the proposals based on criteria such as pricing, administrative flexibility, service quality, and vendor reputation. As a result, the council is recommending several significant changes to the city’s benefit providers. Notably, the city will continue its partnership with Aetna for medical third-party administration while transitioning pharmacy benefit administration to Rx Benefits Inc. with OptumRx. Additionally, the dental program will shift from Metropolitan Life Insurance Company to Delta Dental Insurance.

While the city will maintain its current providers for long-term and short-term disability insurance, it plans to issue a new RFP for short-term disability in 2026. The council also anticipates a separate RFP for stop-loss insurance later this year, as the current proposals did not meet expectations.

The RFP process included a thorough evaluation of claims experiences, with medical claims projected at approximately $9 million and pharmacy claims at around $6.4 million for 2025. The city is currently trending below budget, indicating effective management of healthcare costs.

Looking ahead, the council will prepare for open enrollment, allowing employees to make changes to their benefits for the upcoming year. This initiative is part of a broader strategy to enhance employee support and ensure that the city’s benefits program meets the evolving needs of its workforce. The changes are expected to take effect on January 1, 2026, marking a significant step towards improving employee welfare in Amarillo.