Council adopts option reducing city cost for 2026–27 health coverage after staff and Texas Health present alternatives

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.