City staff recommends 9.11% renewal for employee health plan after market quotes; finance suggests budgeting up to 12–15%

Staff told council the proposed renewal with Scott White Health Plan would increase premiums by 9.11% from the current rate and that the plan’s network and benefits differ slightly under renewal. "Based on initial findings, the finance market did include an 8% increase in budgeting for this benefit, so it came in just slightly over that as we discussed earlier," staff said, explaining why they recommended approval of the renewal rate. Staff said some insurers declined to quote because the city’s plan has a high loss ratio and that alternate quotes received offered lower benefit levels or higher premiums. In discussion, councilmembers asked whether staff could pursue additional market options; staff replied other carriers had declined to quote or proposed plans that did not match the city’s benefit levels. One finance staffer recommended budgeting 12–15% for FY2026 to be conservative; no final council vote on the renewal rate was recorded at the workshop, and staff recommended the city proceed with the renewal option while final budget decisions are made.