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Denton HR outlines 2026 benefits plan to curb medical cost growth and 'be an employer of choice'
Summary
HR staff presented a package of benefits reforms for the 2026 plan year including two modernized medical plan options intended to reduce projected cost growth and lower employee paycheck deductions; open enrollment is Nov. 3–14.
City Human Resources staff presented a multi‑year strategy to improve recruitment and retention and to reduce long‑term benefit cost growth during the Oct. 21 meeting.
Megan Gilbreth, director of Human Resources, summarized progress from the last three fiscal years: a compensation and classification study funded at about $8 million to align market pay; reduced time‑to‑fill for positions from over 125 days to roughly 35 days; a safety program that reduced motor‑vehicle accidents by approximately 14% year‑over‑year; and roughly $500,000 in contract savings in total‑rewards negotiations.
For fiscal 2026, HR proposed two modernized medical plan options (branded Elm and Oak). Gilbreth said that without changes, fiscal‑year 2026 medical expenses would have climbed an estimated 9.6%; with the proposed modernization, expenses are projected to rise about 3.1%, and employee paycheck deductions would decrease in most cases (staff estimated contributions could fall by up to 15% for many employees, with some minor increases up to 2.9%). The Oak plan is designed to be a no‑deductible option that uses provider quality ratings to incentivize lower total cost of care; staff said the better‑quality provider selections are intended to lower employee costs over time.
Council questioned the mechanics of the Oak plan and whether UnitedHealthcare will remain the carrier. Staff said the city conducted a competitive review last year and UnitedHealthcare was selected as the best option for the city’s needs; HR also emphasized that Oak is structured to change patient behavior to high‑quality providers and that an app and provider‑rating system will be used to guide choices.
The HR team noted open enrollment will run Nov. 3–14 and that communication materials will be distributed beginning the next day. The city manager and assistant city manager highlighted other retention efforts—paid parental leave, additional holidays and tuition reimbursement—already adopted and maintained through the budget process.
What’s next: staff will distribute enrollment material, host education sessions during open enrollment, and return with updated metrics; council asked HR to continue monitoring retention, vacancy impacts and plan performance.
