We recognize that changes to health care benefits can impact City of Dallas employees, retirees and their families. Our goal is to continue providing quality, affordable coverage while responsibly managing rising health care costs.
Employer-sponsored health insurance premiums have increased sharply nationwide. Without adjustments, an increasing share of City of Dallas resources would be directed to health care costs rather than essential city services, employee compensation, and staffing.
To address these challenges, the City Manager’s proposed budget would make updates to its employee health plan offerings effective January 2027.
We currently offer three plans. Two will remain. The PPO plan will be discontinued while the City will continue to offer the two current Blue Cross Blue Shield plans: an HSA plan and a PCP plan.
The PCP plan emphasizes coordinated care through a primary care physician who understands an employee’s health history and can help guide referrals and treatment. The HSA plan provides lower premiums and includes access to a health savings account, giving employees another option for managing eligible health care expenses. Many city employees are in these two plans.
Approximately 90% of providers in the current PPO network are expected to remain available through the remaining plans. Before open enrollment, the city’s benefits team will offer both in-person and virtual information sessions to explain the options to employees in the PPO plan, help employees and retirees understand how the changes may affect them, and answer questions.
We will continue to evaluate health care benefits options throughout the coming year, with a focus on identifying solutions that serve both our employees’ needs and the long-term sustainability of our program. This remains an active priority.
