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Council adopts option reducing city cost for 2026–27 health coverage after staff and Texas Health present alternatives
Summary
After staff and Texas Health outlined plan changes and new benefits, the council voted to adopt Option 2—a plan mix that reduces the city's projected budget impact to about $108,000 by changing the HMO dependent contribution from 90/10 to 85/15—on a voice vote; the selection now moves into the council packet for final approval.
Human-resources staff reviewed a Texas Health renewal proposal that initially showed a 12% overall increase. Staff and Texas Health presented alternatives that trim that impact: a package resulting in an 8.1% increase (approx $134,000 impact) and a second option that reduces the city's budget hit to about $108,000 (a 6.6% overall increase) by adjusting dependent contributions on the HMO plan from a 90/10 split to 85/15. Rhonda, the HR presenter, said staff’s recommendation was to proceed with Option 2 to lower the city's fiscal impact.
Texas Health representatives described new no-cost benefits that begin Oct. 1—Green Imaging (major imaging at no out-of-pocket cost if used), Lantern (100% coverage for many elective procedures with travel assistance) and a Tap telehealth texting service—and emphasized utilization/education strategies to reduce avoidable ER use and long-term claim trends. Councilmember (speaker 10) moved to adopt Option 2 and Councilmember (speaker 12) seconded; the motion carried on a voice vote with no opposition recorded in the transcript. Staff said packet options and the chosen configuration will appear in the next formal council packet for final adoption.
