Leon Valley awards FY26 employee health plan to UnitedHealthcare; city will subsidize dependent premiums
August 20, 2025 | Leon Valley, Bexar County, Texas
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The City of Leon Valley Council approved Aug. 19 a recommendation to award the fiscal year 2026 employee group insurance contract to UnitedHealthcare.
City staff and broker analysis showed a Blue Cross Blue Shield renewal would have raised the city’s base medical rate substantially (to a 19.5% increase). After soliciting bids, UnitedHealthcare offered a plan that reduced out‑of‑pocket copays and produced a lower premium increase than the Blue Cross renewal. Under the approved package, the city will adopt UnitedHealthcare rates with a base employee contribution set at $8.19 (new base rate) and the city agreeing to contribute $8.81 toward dependent coverage. Dental premiums decreased slightly to $25.72 and basic life insurance remains at $1.30. City staff presented the change as a net 7.4% increase in group insurance costs overall — lower than the renewal estimate from the incumbent.
Human Resources noted the change would limit the impact of higher premiums on employees: the city’s contribution to dependent coverage and the lower copays were designed to reduce employees’ out‑of‑pocket exposure. Councilor Campos moved to approve the contract award and Councilor Orozco seconded; the motion carried.
Why it matters: Health insurance is a major employee benefit and a material item in the FY2026 personnel and operating budgets. The contract award preserves continuity of coverage while seeking to limit premium increases for staff.
Details: Staff recommended UnitedHealthcare after soliciting competitive bids and reviewing plan designs. The council approved the award and required staff to implement the new plan for FY2026 as presented.
City staff and broker analysis showed a Blue Cross Blue Shield renewal would have raised the city’s base medical rate substantially (to a 19.5% increase). After soliciting bids, UnitedHealthcare offered a plan that reduced out‑of‑pocket copays and produced a lower premium increase than the Blue Cross renewal. Under the approved package, the city will adopt UnitedHealthcare rates with a base employee contribution set at $8.19 (new base rate) and the city agreeing to contribute $8.81 toward dependent coverage. Dental premiums decreased slightly to $25.72 and basic life insurance remains at $1.30. City staff presented the change as a net 7.4% increase in group insurance costs overall — lower than the renewal estimate from the incumbent.
Human Resources noted the change would limit the impact of higher premiums on employees: the city’s contribution to dependent coverage and the lower copays were designed to reduce employees’ out‑of‑pocket exposure. Councilor Campos moved to approve the contract award and Councilor Orozco seconded; the motion carried.
Why it matters: Health insurance is a major employee benefit and a material item in the FY2026 personnel and operating budgets. The contract award preserves continuity of coverage while seeking to limit premium increases for staff.
Details: Staff recommended UnitedHealthcare after soliciting competitive bids and reviewing plan designs. The council approved the award and required staff to implement the new plan for FY2026 as presented.
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