| Agenda Item: | 8.
| | Agenda Title: | Discuss and consider action on renewing the contract with Texas Health Benefits Pool for employee health insurance for fiscal year 2024-2025.
| Council Action:
| Approve or deny
| | Department: | Administration
| | Staff Contact: | Brooke Winburn, Human Resources Director
|
1. INTRODUCTION/PURPOSE
Discuss and consider action on renewing the contract with Texas Health Benefits Pool for employee health insurance for fiscal year 2024-2025.
2. DESCRIPTION/JUSTIFICATION
a) Background
The City of Bee Cave entered into an inter-local agreement for health benefit coverage with TML Health Benefits Pool (now TX Health Benefits Pool) in 2008, and the agreement has been renewed each fiscal year since for both medical and dental insurance. Over the last 16 years Texas Health Benefits Pool annual re-rates have been lower than other insurance providers.
b) Issues and Analysis
The new FY 2024-2025 plan rates consist of a 7% increase for medical and a 0% increase for dental (Please refer to the attachment for current and renewal rates). Compared to the current fiscal year, if all employees keep their selections the same, the total estimated cost on health insurance coverage will increase by $64,000. ($57,000 cost to the city).
Jeff Kloc with Watkins Insurance will be in attendance to provide a presentation to City Council.
3. FINANCIAL/BUDGET
| Amount Requested | $57,000 | | Fund/Account No. | | | Cert. Obligation | | | GO Funds | | | Other source | | | Grant title
| | | Addtl tracking info | |
4. TIMELINE CONSIDERATIONS
The re-rate from Texas Health Benefits Pool is due June 30, 2024.
Renewal of the agreement would become effective October 1, 2024 and expire on September 30, 2025, if approved.
5. RECOMMENDATION
Based on the current ongoing claims and high loss ratio, staff recommends approval to renew the current plans with Texas Health Benefits Pool.
|