City Approves New Health Plan As Costs Rise

The Olney City Council approved a new employee health insurance plan June 8 that will increase the city’s costs by nearly $43,000 next year, but officials said the alternative would have been even more expensive.

Council members unanimously approved “Option 4” from Texas Health Benefits for the 2026-27 plan year after recommendations from City Secretary Tammy Hourigan and City Administrator Andy Wolff.

The plan carries a 6.44 percent premium increase and is expected to raise the city’s annual health insurance costs by approximately $42,953. Ms. Hourigan said maintaining the city’s current coverage structure would have increased costs by nearly $62,000.

To offset some of the premium increase, the approved plan raises deductibles while leaving most benefits unchanged.

The in-network deductible will increase from $1,000 to $1,500, while the out-of-network deductible will rise from $2,000 to $3,000. Maximum out-of-pocket costs will increase from $3,000 to $5,000.

Ms. Hourigan told council members that prescription drug coverage, physician copays and other commonly used benefits will remain the same. Employees will continue to pay a $30 copay for doctor visits and a $60 copay for specialist visits. The city’s health reimbursement arrangement also will remain in place.

The plan also includes a benefit called Lantern, a medical navigation program that helps employees schedule major procedures through participating providers. Under the program, certain surgeries can be performed with no deductible cost to the employee, while travel and lodging expenses are covered.

Mr. Wolff said he had personally used the program during a hip replacement surgery and found it valuable.

Council members agreed the plan struck a balance between controlling rising insurance costs and maintaining benefits for employees. The new rates will take effect Oct. 1 and will be incorporated into the city’s next fiscal-year budget.