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Huntsville approves renewal with TML health benefits pool after staff cites about $300,000 annual savings
Summary
The Huntsville City Council authorized the city manager to enter an administrative services agreement with the TML Health Benefits Pool, a renewal staff said produced nearly $300,000 in year‑over‑year savings; council approved the contract unanimously.
HUNTSVILLE, Texas — The City of Huntsville Council voted unanimously at its May 2025 meeting to authorize the city manager to enter an administrative services agreement with the TML Health Benefits Pool, an arrangement city staff said reduced the city’s health plan costs by about $300,000 year over year.
City Human Resources/Benefits staff presented the contract renewal and told council the pool handles administration between insurance carriers and the city. “Very standard and kind of excited to let you know that we've saved almost $300,000 year over year from last year to this year in this process,” staff member Mr. Beasley said during the statutory-agenda presentation.
The agreement includes an administrative fee that staff confirmed is charged per covered person. When a councilmember asked, “Do they charge a fee?” Beasley replied, “It's a fee. It's $43.28 per head per month.” He also explained the city’s monthly payments vary with head count: “One month might be $12,000; one month might be $15,000 based on the headcount movement.”
Council discussion included procedural questions about how often the city solicits alternative vendors; staff said the city issues a request-for-qualifications process roughly every five years for pool administration and that switching pools is uncommon because the pool is a consortium of cities that aggregates costs.
Councilman MacKenzie moved to authorize the city manager to approve the contract; the motion was seconded and passed unanimously.
The contract renewal will remain subject to the ordinary administrative steps for execution by the city manager. The council did not attach additional conditions or direct staff to seek alternative providers immediately.
