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Consider a memorandum/resolution renewing Group Employee Medical and Pharmaceutical Benefits with Blue Cross and Blue Shield of Texas and employee dental insurance with MetLife, effective October 1, 2026.
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DATE: June 16, 2026
TO: Kent Cagle, Interim City Manager
FROM: Kate McDaniel, Executive Director of Human Resources
SUBJECT: Agreement with Blue Cross and Blue Shield of Texas for Group Medical and Rx Benefits and MetLife for Dental Insurance
BACKGROUND AND FINDINGS:
The City of Killeen offers medical/Rx and dental insurance as part of its employee benefits package. Currently, approximately 1,049 employees select the City's medical insurance plans. In addition, we have 1,322 employees who elect the City 's dental insurance plans.
All benefits provided to the City of Killeen employees are reviewed annually to ensure that both the City and employees are receiving the best product for the best price. The City currently pays 100% of the medical premiums for the employee only on the lowest plan option. Employees may purchase additional medical coverage for eligible family members or dependents at their added expense. The City's current medical carrier is Blue Cross and Blue Shield of Texas (BCBSTX), and the City offers two medical plans: An Exclusive Provider Organization (EPO) Plan, traditionally known as a Copay plan, and a High Deductible Health Plan (HDHP), with a health savings component. Due to anticipated increases based on claims performance, as well as input from the employee population regard benefit issues, the City, requested renewal quotes from BCBSTX in order to determine its vulnerability in the market, and to determine if renewing with BCBSTX would be more advantageous than going out for bid for the second year in a row in a rapidly changing environment.
In partnership with the City's employee benefits consultant, Lockton Dunning, a benchmark study was completed to determine how changes in the plan design and contributi...
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