Laredo council approves option 4 for employee health benefits after workshop

LAREDO, June 11, 2026 — The Laredo City Council voted at a June 11 special meeting to approve plan design option 4 for the city’s employee and retiree health‑insurance program after a workshop that reviewed multiple contribution and design scenarios.

Carol Thirkell of the Human Resources department told the council that, without changes, "the city is projected to experience approximately a $12,400,000 in additional healthcare costs next fiscal year if changes are not implemented," and staff presented side‑by‑side plan comparisons and projected budget impacts. Thirkell read example biweekly employee contributions under one model — "the rate would now be $95.32 per pay period for employee only;" she also cited sample rates for spouse and family tiers.

The discussion centered on tradeoffs between access and cost. Councilmember Ruben Gutierrez Jr. said employees who move from the PPO to an HMO could "pay less than what they're even paying now," while staff and consultants warned that shifting enrollment assumptions drives projections and that the city’s self‑insured medical fund must remain balanced. Staff noted the fund’s reserve was roughly $3,000,000 and that current claims trends could require drawing that balance down this fiscal year.

Blue Cross and Blue Shield Senior Manager Benjamin Torres explained that prior‑authorization requirements and medical‑policy reviews apply across product types and outlined a peer‑to‑peer and external appeal process, saying the first‑level peer review typically completes within 48 hours. Thirkell and council members also pressed consultants and insurer representatives for local benchmarking data and headcounts by product so employees could better understand the out‑of‑pocket consequences of each option.

Staff described a range of numbered options presented to the council. One conservative option (referred to in the presentation as 6d) was projected to generate approximately a $1,100,000 surplus; other options produced varying deficits that would require transfers or other budget adjustments. Several council members cautioned against sudden large increases for employees and asked staff to weigh wellness, utilization management and phased approaches.

Councilmember Gutierrez moved to approve option 4 of the plan‑design packet; the motion was seconded and the chair declared the motion passed by voice vote. The council adjourned the special meeting following the action.

The council asked staff to finalize enrollment materials, clarify employee out‑of‑pocket comparisons, and provide requested benchmarking information and plan details to employees ahead of the enrollment period. No formal ordinance or budget appropriation was recorded at the meeting; the action approved a plan design to be implemented through the city’s administrative process.