The City Council of Mesquite, Texas, convened on July 19, 2025, to discuss significant changes to the city's employee benefits and compensation structure, particularly focusing on the medical insurance plan. The meeting highlighted the city's self-insured status for medical claims, detailing how funding is sourced from employee payroll deductions, retiree premium payments, and city contributions, which can vary significantly based on claims costs.

The presentation outlined that the city spends approximately $12 million annually on medical coverage for active employees and nearly $1 million for retirees. The current medical plans include four options, with the High Deductible Health Plan (HDHP) and Health Savings Account (HSA) plans being the most popular among employees. The city is experiencing rising claims costs, particularly in prescription coverage, which has prompted discussions on potential adjustments to the benefits structure.

Proposed changes include increasing employee contributions by $10 per paycheck, eliminating the "employee and child" tier, and raising deductibles across various plans. These adjustments are projected to save the city approximately $326,000 annually. Additionally, the city is considering reducing the number of medical plan options from four to two, aligning with practices in other cities within the metroplex.

Concerns were raised during the meeting regarding the potential impact of these changes on employee access to healthcare providers, particularly specialists. City representatives assured that the broader network associated with the remaining plans would mitigate negative effects, and a continuation of coverage would be available for those affected during the transition.

The council's discussions reflect a proactive approach to managing healthcare costs while attempting to maintain adequate coverage for city employees and retirees. Further deliberations and decisions on these proposed changes are expected in upcoming meetings, as the city seeks to balance fiscal responsibility with employee welfare.