Rowlett’s City Council on Aug. 5 approved renewal contracts for employee benefit plans, including administrative services and stop-loss coverage with UnitedHealthcare, life and disability coverage with Mutual of Omaha, dental with Cigna and employee assistance with Alliance Work Partners. Staff recommended renewal after broker negotiations with multiple vendors; the motion passed unanimously, 6–0.

Staff presentation: Rick Diorgio, HR director, told council the city had a “hard claims year” with an 88% loss ratio for the self-funded medical plan. He said stop‑loss reinsurer pricing was initially projected to rise steeply but staff and broker negotiated plan design adjustments (raising the specific stop‑loss attachment from $100,000 to $125,000) and other contract terms that reduced the city’s increase to a more modest figure.

Budget and guarantees: Diorgio presented estimated FY2026 budget impacts for the various products and said the staff recommendation included multi‑year rate guarantees where possible. The staff packet listed aggregate estimated amounts (estimates vary by enrollment), and Diorgio said actual costs can change with employee choices. Council asked about funding practices and reserve levels for the self‑funded account; staff said the city maintains a reserve (noted as roughly 140 days of funding) and funds based on 90‑day experience targets.

Why it matters: Benefits affect employee recruitment and retention and drive the city’s personnel budget. The city preserved coverage continuity while negotiating rate guarantees and supplemental voluntary products to reduce the city’s immediate increase.

Vote and follow-up: Council member Shoop moved to approve renewal contracts as presented; Council member Gibbs seconded. Staff will finalize renewal paperwork and proceed to implement benefit plan communications during open enrollment.