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Council asks for an alternate health-plan quote and schedules July 13 follow-up
Summary
After hearing options from Texas Health/Gallagher that would raise employer costs between about 5% and 12%, council asked staff to seek an additional option that keeps deductibles similar while increasing out-of-pocket maximums; council asked for an updated quote and targeted a July 13 special meeting to decide.
Representatives from Texas Health/Gallagher presented four renewal options for the city's employee medical plan, reviewing deductible and out-of-pocket changes and historical utilization. The baseline renewal would require a roughly 12% increase in employer cost—about $176,000—while other options (including a direct primary care model) ranged down to a 5% employer cost increase. The staff presentation included utilization counts: for the plan year starting Oct. 1, 2025 through April 30, 2026, 17 members met their deductible and 14 met their out-of-pocket maximum; the prior year counts were 29 and 8 respectively.
Council asked staff to provide a supplemental quote that would keep employee deductibles closer to current levels while raising out-of-pocket maximums to reduce the number of employees impacted. The representatives said July 1 is the target for renewal offers, with open enrollment starting Aug. 1; staff agreed to return to a special council meeting on July 13 with updated pricing. "If we go with the renewal, again, it's a 12% increase, about a $176,000 increase," a benefits representative explained during the presentation.
