Dallas proposes dropping PPO health plan for employees

DALLAS - As the cost of health insurance skyrockets, cities like Dallas are working to figure out how to reign in the costs during already tough budget times.

The Dallas city manager said she is making a tough choice of recommending that the city eliminate its Preferred Provider Organization (PPO) health plan.

Dallas Health Insurance Changes

What we know:

Currently, 53% of all Dallas employees, including police officers and firefighters, are on the PPO plan.

But the city said keeping the PPO plan would mean the city would have to cut $10 million from its budget and also increase employee premiums by 40%-45%. That could also mean more employee layoffs.

What they're saying:

City leaders explained that many other employers have also been eliminating PPOs in recent years.

"Majority are not offering a PPO. The whole state of Texas is not offering a PPO. Universities are not offering a PPO. And they’re not offering a PPO not because it’s not a good plan, it’s because it’s harder to control costs when someone has basically free range to go to any specialist, have any testing done at any time. In other times, when budget is not such a concern, we would not touch it," said Nina Arias, the city’s Human Resources director.

"It’s about how do we ensure that we’re going to have a healthy plan and a plan that’s going to be sustainable with the types of programs included to help our employees be well," City Manager Kim Tolbert said.

The other side:

Some employees are concerned about having to find new doctors, as well as having to see a primary care physician before a specialist under the city’s proposed alternative HMO plan.

Councilman Adam Bazaldua is on the city’s HMO plan and shared his personal struggle with finding a doctor when he got hurt in another city.

"I broke a bone in Austin, Texas and it was extremely difficult for me to get any if my services after going to the ER without getting to pass through my PCP. Abd that was eveb just getting my cast on, because I could not see a specialist down there, and I didn't have anyone in network down there," he said.

Dallas Wellness and Engagement Administrator Cheryl Mayo said despite the councilman’s example, emergent care should not be difficult for employees to access on the HMO plan.  After that point, health insurance advisors should be able to help employees find providers for follow-up treatment.

What's next:

If the Dallas City Council approves the proposed budget on Sept. 16, the proposed health insurance changes would take effect in January.

Employees earning $50,000 to $75,000 would see their monthly contributions go up by about $25 per month, while those making more than $75,000 a year would pay about $140 more per month.

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