The company that runs Plano's employee medical plan would be paid $882,100 more than its contract allows across 2026 and 2027 under a change on Monday's City Council consent agenda.
WebTPA Employer Services has administered the city's health benefits since the council awarded the contract on April 27, 2020. The arrangement also covers pharmacy benefit management through Liviniti and flexible spending account administration through Diversified Benefit Services.
The Human Resources Department is asking the council to raise the 2026 plan-year amount by $133,964, from $1,734,916 to $1,868,880, and to set 2027 at $2,483,052, which is $748,136 above the current level.
What staff say drove the cost
The agenda memo lists four reasons:
- New federal requirements, including price transparency tools and arbitration services under the No Surprises Act, which carry extra administrative fees.
- RxCompass, a Liviniti program started in late 2025 that looks for lower-cost prescription options.
- Inflation and contractual rate increases across existing services.
- Shifts and growth in the number of employees and dependents on the plan.
Staff credit RxCompass with about $1.6 million in prescription savings from Jan. 1 through Sept. 30, 2026, and say that helped offset rising drug claims. The money for the contract comes from the Health Claims Fund and the Other Post-Employment Benefits Trust Fund, which are fed by contributions from employees, retirees and the city.
Claims contract also up for a vote
The same consent list awards a new claims administration contract for the city's risk management program to Sedgwick Claims Management Services. The firm would handle self-funded workers' compensation, general liability, auto liability, employment-related and property claims, among others.
