New insurance plan could ensure happier Granite Shoals employees
Insurance broker Javier Reyes presents better, cheaper options to the Granite Shoals City Council regarding the city’s employee benefits during a meeting on July 11. Staff photo by Dakota Morrissiey
Facing a 50-percent rate increase on its current insurance plan, the Granite Shoals City Council decided to seek a better option to support current employees and encourage new hires. The council will possibly select a new provider during a special meeting at 5 p.m. Thursday, July 13, at City Hall, 2221 N. Phillips Ranch Road.
The council voted to leave its current provider on June 27 due to the massive rate increase. At their regular meeting on Tuesday, councilors were given cheaper, more diverse options by insurance broker Javier Reyes. Those plans are on the Thursday agenda for a vote.
Granite Shoals has had a problem recruiting and retaining employees for years, City Manager Peggy Smith told DailyTrib.com after Reyes’ presentation.
“I think for 100 percent of employees who choose to leave the city, insurance benefits for dependents were a driving factor,” Smith said. “Our current costs don’t leave much of somebody’s paycheck if they have to cover their spouse or children.”
The city zeroed in on employee benefits in December 2022 when high insurance costs were identified as a potential reason for persistent understaffing in the city. The Streets and Parks and police departments in particular have struggled with retaining employees due to high insurance costs and a lack of flexibility in the coverage prior to the proposed rate increase.
The council was slow to move forward on solutions until June 27, when members discussed the rate increase from current provider TX Health Benefits Pool.
“We’ve said all along that we want to address our insurance needs for our employees, and it has been a very hard road to find an alternative,” Smith said. “It was very disheartening to me that my employees are having trouble providing basic healthcare for their families. When we got a 50 percent increase in premiums, that was the trigger.”
The city’s plan would have jumped from $711 per month to $1,066 per month, with no upgrade in coverage. The plan Reyes and partner Deana Kenner presented would provide the same coverage at a rate of about $750 per month, much of which would be paid by the city with the rest passed on to the employee. The new plan would also offer employees multiple options for coverage, allowing them to customize their plans rather than being stuck with a one-size-fits-all plan.
According to City Secretary and Human Resources Director Dawn Wright, all insurance providers seem to be raising their rates, but the TX Health Benefits Pool price hike was far more than city employees could handle.
“When I onboard people and show them the benefits we offer, people are shocked,” Wright said. “I do know that the employees we have are more likely to stay if they see more money in their paychecks. It definitely impacts your recruitment and retention.”