(8)(b)
CITY COMMISSION REGULAR MTG
- Meeting Date:
- 05/20/2026
- Title:
- Ordinance No. 26-13, requesting to amend the City of Texas City's fiscal year 2025-2026 budget to transfer funds to the Group Insurance Fund.
- Submitted For:
- Jennifer Price
- Submitted By:
- Jennifer Price, Human Resources
- Department:
- Human Resources
Information
ACTION REQUEST
Consider approval of a request to amend the City of Texas City's fiscal year 2025-2026 budget.
BACKGROUND (Brief Summary)
A budget amendment is needed to transfer funds to the Group Insurance Fund in order to cover the liability and fund the remaining invoices for fiscal year 2025-2026.
Blue Cross and Blue Shield of Texas (BCBS), along with our insurance brokers HUB, presented information regarding the original FY26 projections for medical/Rx claims and an updated projection for FY26 based on the 2025 calendar year claims from BCBS (since we began with then 01/01/2025) and the first few BCBS invoices of 2026, and there is a need for funds in the Group Insurance Fund. In 2025 the City plan had 30 high cost claimants (those with claims over $50,000), 10 of which went above the $125,000 mark, which then triggers our stop loss insurance to kick in. Pharmacy claims and specifically specialty medications have also seen a significant increase, and some of these are due to medications that do not have generic or lower cost alternatives.
The FY26 original budget projection for the Group Insurance Fund was approximately $8,404,145 with over 90% of that ($7,844,145) being BCBS claims and costs. The updated projection for FY26 is $9,439,444, again with over 90% of that ($8,676,444) being BCBS claims and costs. The amount in Munis for FY26 in the Group Insurance Fund is $7,472,599.28, meaning we are approximately $2 million short in funding.
Blue Cross and Blue Shield of Texas (BCBS), along with our insurance brokers HUB, presented information regarding the original FY26 projections for medical/Rx claims and an updated projection for FY26 based on the 2025 calendar year claims from BCBS (since we began with then 01/01/2025) and the first few BCBS invoices of 2026, and there is a need for funds in the Group Insurance Fund. In 2025 the City plan had 30 high cost claimants (those with claims over $50,000), 10 of which went above the $125,000 mark, which then triggers our stop loss insurance to kick in. Pharmacy claims and specifically specialty medications have also seen a significant increase, and some of these are due to medications that do not have generic or lower cost alternatives.
The FY26 original budget projection for the Group Insurance Fund was approximately $8,404,145 with over 90% of that ($7,844,145) being BCBS claims and costs. The updated projection for FY26 is $9,439,444, again with over 90% of that ($8,676,444) being BCBS claims and costs. The amount in Munis for FY26 in the Group Insurance Fund is $7,472,599.28, meaning we are approximately $2 million short in funding.
RECOMMENDATION
It is recommended this request for a budget amendment is approved as follows:
| General Fund: | |
| Transfer to Group Insurance Fund | $1,131,683.82 |
| Unassigned Fund Balance | ($1,131,683.82) |
Fiscal Impact
- Funds Available Y/N:
- Amount Requested:
- $1,131,683.82
- Source of Funds:
- GENERAL FUND
- Account #: