Title:
Consider and take action on a resolution authorizing a three-year renewal of the Administrative Services Agreement with Texas Health Benefits Pool (TXHBP) for employee medical plan third-party administration in an amount not to exceed $1,138,956 (Director of Human Resources)
Background:
Approval of this item will renew the Administrative Services Agreement with Texas Health Benefits Pool (TXHBP) to administer the City’s self-funded employee medical plan. The renewal covers three new plan years (October?1?2025?-?September?30?2028) and reflects only adjustments to third-party administrator fees.
The attached renewal fee schedule outlines the proposed third-party administrator rates based on 650 enrolled employees. The combined per-employee-per-month (PEPM) fee for the current year (October 1, 2024 - September 30, 2025) is $48.39, or approximately $377,442 annually. Under the proposed renewal, combined PEPM fees and estimated annual costs are as follows:
· Year?1 (10/1/2025?-?9/30/2026): $46.81 PEPM, $365,118 annual
· Year?2 (10/1/2026?-?9/30/2027): $48.58 PEPM, $378,924 annual
· Year?3 (10/1/2027?-?9/30/2028): $50.63 PEPM, $394,914 annual
The total three-year renewal cost is $1,138,956. Renewing ensures continuity of service, leverages existing provider relationships, and delivers moderate, predictable increases.
The League City Employee Committee was consulted regarding the proposed insurance renewal and expressed satisfaction with the current Blue Cross Blue Shield (BCBS) network. This agreement would allow the City to continue utilizing BCBS for medical network access under the administrative services provided by TXHBP.
CONTRACT ORIGINATION: Agreement has been reviewed by the City Attorney’s Office.
Attachments:
1. Proposed Resolution
3. Exhibit A - Texas Health Benefits Pool Agreement
2. Texas Health Benefits Pool Fee Schedule
FUNDING
{X} Funds are available from Employee Benefit Fund - Health Insurance 40301650-54650.
STRATEGIC PLANNING
{X} NOT A...
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