City renews employee medical, dental, vision and life plans; approves trust transfers and rate increases

The Orange City Council approved a series of employee-benefit renewals and actions on Aug. 26, authorizing the mayor/trustee to sign renewal documents and approving premium figures and monthly transfers to the City of Orange Employee Benefits Trust.

Finance director Miss Zito presented the renewals. The city’s medical insurance renewal with Blue Cross Blue Shield of Texas was approved at an estimated annual premium of $4,087,847.75 for Oct. 1, 2025–Sept. 30, 2026. Zito said the carrier’s initial renewal proposal was 24%; negotiations by the city’s consultant reduced the stated renewal to 16.7%, and credits produced an effective increase of 14.8% that will be reflected in the trust and premium accounting. The city will maintain existing employer contribution levels for employee-only coverage and the same contribution structure for dependent buy-downs.

Council also approved dental insurance renewal through Blue Cross with a stated 24% increase offset by credits for an effective 19% increase, vision insurance with MetLife at a 4% increase and a two-year renewal for life and voluntary insurance through Mutual of Omaha at a 0% increase. Council authorized monthly transfers to the employee-benefits trust so the trust can pay premium obligations and preserve tax-exempt status for certain products.

All motions to approve the insurance renewals and trust transfers passed on recorded council votes during the meeting. Councilors emphasized that the city intends to maintain employee contribution levels and that the increases reflect marketwide premium pressure.