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Commission approves move to partially self‑funded health plan to contain costs
Summary
After staff analysis, the commission authorized moving the city’s employee health plan to a partially self‑funded arrangement with Blue Cross, using a $225,000 specific‑stop loss deductible and aggregate reinsurance; officials said employee benefits and networks remain unchanged.
City staff recommended shifting the city’s health coverage funding model to a partially self‑funded arrangement administered with Blue Cross Blue Shield and specific stop‑loss reinsurance. Scott Gibbs summarized a multi‑option analysis and recommended a $225,000 specific‑stop loss deductible with aggregate reinsurance at 125% of expected claims; staff said this approach keeps employee contributions and benefits intact while offering budget savings over time.
"No change to the employee contributions or the benefits," Gibbs said, adding that network access (including MD Anderson) would remain in‑network under the proposed setup. Commissioners sought assurance about administrative capacity and risk management given recent turnover in HR and risk roles; staff said Blue Cross could serve fiduciary functions and the city has budgeted conservatively for transition costs. After discussion the commission approved the staff recommendation to proceed with partial self‑funding and ancillary renewals.
