Dallas council approves recommended changes to employee health plan, including captive stop-loss

Mayor Pro Tem Molina presided over a council meeting on July 30 where the council voted to approve the insurance package and analysis presented by BKCy to restructure the city's employee medical insurance for plan year 2027. BKCy's presenter said the package is intended to lower the city's fixed costs while managing run-out claims when changing carriers: "This is an important issue for everyone," the presenter said during the packet review. The recommendation included using a 12/18 run-out approach to avoid gaps in coverage for claims incurred before a carrier transition and selecting a $125,000 stop-loss retention level to reduce fixed expenses.

BKCy told the council it recommends an independent third-party administrator (OXIANT), Smith RX for pharmacy analysis, and Pareto Captive for stop-loss support, while keeping two plan designs on a single PPO network. "We will still have the 2 plans but 1 PPO network," the presenter said. Council members asked about local provider access for concierge care and about employee premiums; BKCy and city staff said the intent is to keep employee premiums close to current levels, with final rates to be set once stop-loss and fixed-cost figures are finalized. A council member moved to approve the insurance package as presented; the record notes a second "by mister Bertrand," the council recorded "Aye," and Mayor Pro Tem Molina declared the motion passed.