Corinth City Council unanimously approved renewal proposals from Blue Cross Blue Shield of Texas for the city’s dental and medical employee insurance benefits for fiscal year 2025–26.

Guadalupe Ruiz, the city’s human resources director, told the council the dental renewal came at 7.8%, which she said “represents about $11,000 for the city.” Ruiz said the city pays 100% of the premium for employee-only dental coverage and that dependent coverage increases would range from about $11 to a little more than $25 per pay period.

The medical renewal was more substantial. Ruiz said the city’s experience ratio has been above 1.0 in recent years and that the most recent experience ratio was “1 45 145,” describing a large gap compared with the carrier target Ruiz identified as 85%. She said an initial consultant projection put the renewal at 36.5%, a carrier quote came at 28%, and negotiations using the consultant’s leverage reduced the renewal to 18.9%.

To limit premium increases, Ruiz said staff also proposed plan design changes to the city’s base high-deductible plan. “We had to change it from 0 on the coinsurance to be 10%,” Ruiz said, explaining that after employees meet the deductible they will pay 10% coinsurance until reaching the out-of-pocket maximum. Ruiz said the City Manager was considering a 3% salary adjustment to help offset the higher medical costs for employees.

Ruiz described additional complications for employees on supplemental “buy-up” plans. She said the carrier offered no alternative for that group and that about 26 employees are in the buy-up tier; those employees would face the full 18.9% increase on their buy-up premiums because buy-up contributions are calculated off the base plan.

After brief discussion, a councilmember moved to approve the dental and medical renewal proposals and another councilmember seconded. The council voted unanimously to approve both items.

The council did not adopt any additional benefits changes beyond those presented; staff said they would return with details to implement the plan design and contribution changes.

City staff named the carrier as Blue Cross Blue Shield of Texas and said they used an outside consultant during renewal negotiations.