Council rescinds prior one-time health plan vote, approves phased changes to city employee health insurance with supplemental funding

Summary

After extended public and council discussion, Laredo council rescinded a previously passed single-year health plan change and approved a phased approach intended to shore up the health-benefits fund; staff estimated the near-term city cost at about $800,000 (general fund) and $1.3 million across funds.

City Council voted July 1 to rescind an earlier one-time insurance action and adopt a revised, phased approach to changes in the city's employee health-insurance program, after a lengthy presentation from Human Resources and the city's benefits consultant and questions from council and employee representatives.

Linda Tenedo of Human Resources outlined the financial pressure in the city's health-benefits fund, advising that rising medical and pharmacy costs and a year with an unusually high number of catastrophic claims required plan changes to avoid depleting reserves. She said the city faced a projected increase in medical and prescription costs and that, without changes, the fund would be unsustainable.

Natalie Haskett, identified in the meeting as a consultant with Gallagher, described the insurer's exercise of re-pricing the city's three plan options (PPO, HMO, and HDHP) to better align premium…

Council rescinds prior one-time health plan vote, approves phased changes to city employee health insurance with supplemental funding

Summary

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