Title
Approving a Benefit Program Application with Blue Cross and Blue Shield of Texas (BCBSTX) in the amount of $6,083,021 for medical and prescription benefits, and authorizing the City Manager to execute the same.
Summary
It is proposed that the City of Pflugerville select Blue Cross Blue Shield TX (BCBSTX) for the fourth consecutive year to provide medical and prescription benefits. In calendar year 2026, the Medical and Prescription benefit plan will cost an estimated $6,083,021. The City’s share, covering both the plan and the City’s Health Savings Account (HSA) contributions, is expected to be approximately $5,106,180, which is within the FY26 budgeted amount of $5.4 million.
In August 2025, the City partnered with HUB International to complete a Request for Proposal (RFP) for medical and dental benefits effective January 1, 2026. While the initial proposal was significantly higher than budget due to the City’s previous high plan utilization, BCBSTX was the most competitive medical bid. Working with HUB and BCBSTX, the City made small adjustments to the HDHP and PPO plans, added an HMO plan, secured a $100,000 credit, and increased employee contributions, ensuring competitive medical options within budget. Based on the RFP, the City will not change dental providers.
The City will offer three plan options to employees in 2026 with no changes made to the provider network. The result is a plan that keeps employees’ premiums to a minimum and remains competitive with other employers (private and public).
This item is supported by the Brand and Reputation pillar of the Strategic Plan by providing a benefits program competitive with similar cities and positioning Pflugerville to continue to attract and retain top talent and support employees and their families.
Prior City Council Action
Contract approved November 12, 2024 with Blue Cross Blue Shield TX for 2025 medical and prescription benefits. Contract approved with Dearborn Life Insurance Company fo...
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