City Council Approves 3% Increase for Medical Plans with Texas Health Benefits

July 22, 2025 | Bay City, Matagorda County, Texas


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City Council Approves 3% Increase for Medical Plans with Texas Health Benefits
The Bay City Council convened on July 22, 2025, to discuss key issues affecting the city, primarily focusing on employee health benefits and the public safety center. The meeting commenced with an update from the city manager regarding the city's health insurance plans.

The city manager reported a significant improvement in the health benefits renewal process, highlighting a 3% increase in overall medical plans, which translates to an additional $43,000 in costs for the city. This increase is split between the general fund and the utility fund, with approximately $26,000 allocated to the general fund and $13,000 to the utility fund. Notably, the city has opted to remain with the Texas Health Benefits pool, which has proven beneficial, resulting in a 16.5% decrease in costs last year, saving the city around $265,000.

Employee contributions for health insurance will see minor adjustments. For the HMO plan, costs will increase by about $4 to $6.71 per month for dependents, while the PPO plan will see increases ranging from $4.70 to $13.87 for various coverage levels. Despite these increases, employees expressed satisfaction with the overall benefits package, which includes unchanged premiums for ancillary benefits such as dental, vision, and life insurance.

The discussion transitioned to the public safety center, where council members were briefed on ongoing developments. The specifics of this agenda item were not detailed in the transcript, but it was noted that further actions would be taken as deemed necessary.

The meeting concluded with a motion to approve the health benefits renewal, which passed unanimously, reflecting the council's commitment to maintaining quality health coverage for city employees while managing costs effectively. The council plans to continue monitoring the situation and will address any further developments in future meetings.

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