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Council approves two-year medical and pharmacy renewals after debate over premium increases
Summary
After extended discussion and an initial failed vote, Farmers Branch approved contracting with UMR (medical TPA) and ProAct (pharmacy benefits) for 2025–26. The plan changes will raise employee premiums (employee-only up ~33%) and place 2025 health-claims fund estimates near $5.2 million.
The council approved authorizing the city manager to negotiate contracts with UMR (medical third‑party administrator) and ProAct (pharmacy benefit manager) for plan years 2025 and 2026 after substantial discussion about premium increases and budget impacts.
Lance Penley of McGriff reviewed the city's self‑insured plan and the proposed rate changes effective Jan. 1, 2025. The advertised employee monthly premiums presented were: employee only rising from $55.56 to $73.62 (about a 33% increase), employee plus one from $233.34 to $269.45 (about 15%), and family from $350 to $404.17. Staff said the health claims fund was budgeted in the agenda at $5,400,000; presenters estimated plan-year 2025 claims could approach $5.2 million.
Council members probed enrollment counts (staff projected 366 covered: 180 employee-only, 46 employee-plus-one, 140 family), premium split targets (moving toward an 80/20 employer/employee split overall), and stop‑loss insurance that will return for separate approval in November. At one point during the meeting an initial motion to approve the contracts failed on the first vote; later that evening, after further discussion and clarification, the council approved Resolutions 2024-140 and 2024-219 by show of hands.
Staff emphasized the need to finalize rates before open enrollment (starting Oct. 31) so employees can make decisions; council directed staff to return with a review and annual updates as needed.
