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Council adopts employee health plan with higher deductibles to limit city cost
Summary
After extended discussion about rising health-care costs, the council approved a Texas Health Benefit Pool renewal option that raises employee deductibles and out‑of‑pocket maximums while reducing the city’s projected increase from 16% to about 11.17%. Staff and council debated the tradeoffs for roughly 41 employees.
The City of Bulverde council voted to adopt a renewal of the city’s employee health benefits through the Texas Health Benefit Pool that increases the city’s medical premium costs by about 11.17% under the chosen plan and raises employee cost-sharing.
Staff recommended an alternative to an expected 16% renewal that preserves employees’ existing providers while increasing the individual deductible by $250, the individual out‑of‑network deductible by $500 and the individual out‑of‑pocket maximum by $2,000. Staff said the option would reduce the city’s additional cost compared with the full 16% renewal and estimated roughly $20,000 in annual savings across about 41 employees.
“Because we have so many members that do meet the deductible, we tried to make it as painless for the employee as possible,” a staff presenter said during the meeting. Staff also told council that the plan changes would not alter dental, vision or basic life coverage and that prescription benefit changes were not available because the city is not self‑insured.
Council members pressed staff on how the changes would affect employees who already meet their deductibles and on whether shifting costs to employees was fair. One council member asked, “Is it worth the $20,000 savings to the city to put that on the back of our employees when they’re already [maxing out]?” Staff responded that the recommended option was chosen to minimize disruption and preserve current providers and prescriptions.
A motion to adopt the recommended option passed by voice vote.
Council indicated staff will continue to monitor claims and that refunds can occur if future claims experience falls within a favorable range. The council also noted continued budget pressure and that the renewal takes effect Oct. 1 under the pool’s plan year.
