Katy city employees will get new health insurance cards this fall after the City Council voted Aug. 10 to drop Blue Cross Blue Shield of Texas in favor of Cigna, a move projected to save the city roughly $743,000 compared to renewing its existing coverage.

The switch, effective Oct. 1, avoids what would have been a 22.75% spike in the city's annual benefits costs. Renewing with BCBS would have pushed Katy's employee benefits bill from approximately $4.63 million to $5.68 million, an increase of about $1.05 million, according to Covering Katy News, which reviewed city documents.

Instead, the Cigna package is projected to cost approximately $4.94 million annually after credits. That's still a $309,000 increase over the current package, or 6.68%, but far less than the alternative.

Dental coverage will also move from Delta Dental to Cigna under the same action.

The city's benefits broker, Brown & Brown, sought competitive bids and recommended Cigna. City documents indicate the change will maintain coverage through area provider networks for employees, according to Covering Katy.

Mayor Dusty Thiele and the rest of the council approved the carrier switch without discussion.

The insurance decision came at the same Aug. 10 meeting where council extended the city's solid waste contract with Texas Pride Disposal through Aug. 31, 2029, raising residential trash bills by 81 cents a month. As we reported Aug. 11, that 4.8% rate increase takes effect Sept. 1.

Council Member Paula Taylor said at the meeting that locking in the trash rate for the next year was "a great thing for our citizens" given fuel costs.

Even after switching insurers, the city's benefits costs will climb by $309,000 annually. Without the carrier change, the increase would have exceeded $1 million.

The next regular Katy City Council meeting is expected Sept. 14 based on the city's second-Monday schedule; residents can confirm at cityofkaty.com or by calling City Hall at 281-391-4830.