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Laredo council presses staff on health-plan deficit as freestanding ERs and specialty drugs drive costs
Summary
City officials heard a detailed presentation from HR and consultants showing a projected $6M operational-year deficit and a larger multi-year shortfall for the city's self-funded health plan. Council asked for alternatives to a proposed 24% contribution-plus-plan-design package and directed staff to return with additional options and advocacy steps.
City of Laredo elected officials spent most of a March 25 budget workshop examining the city's self-funded health insurance program after consultants told the council the plan faces significant near-term deficits driven by large claims, freestanding emergency-room utilization and rising prescription costs.
Lede: Human Resources and Gallagher consultants presented data showing a sharply worsening trend for medical and pharmacy expenses; staff projected the current plan-year reforecast would finish roughly $6 million over budget and a status-quo projection for next year could produce a roughly $12.8 million cumulative shortfall unless the city adopts plan changes and contribution increases.
Nut graf: Consultants said the city's stop-loss (individual threshold $300,000) has seen more claimants near and above that threshold and that freestanding emergency…
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