Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH TRUERX FOR CERTAIN HEALTH BENEFIT PLAN SERVICES; AND DECLARING AN EMERGENCY.
Brief Description: The City of Hudson provides certain health benefits (medical and prescription drug coverage) to regular full-time city employees. The attached legislation seeks Council’s authorization for the City Manager to enter into a contract with TrueRX to provide prescription drug administration for the period of January 1, 2026, through December 31, 2026.
Body
Legislative History
None.
Purpose & Explanation
The purpose of this resolution is to authorize the City Manager to enter into a health benefit plan contract with TrueRX. Staff is recommending entering into a contract with TrueRX to provide prescription drug administration for the period of January 1, 2026, through December 31, 2026.
The City has historically been fully insured for medical and prescription drug claims. In 2025, the City began self-insuring its medical and prescription drug claims, due to unsustainable fully insured rate increases. The top proposal for the 2026 self-insured plan year is a combination of Nationwide Life Insurance for stop loss insurance, Mutual Health Services for claims administration, and TrueRX for prescription drug administration. There is no increase in prescription drug administration for 2026.
Staff is once again recommending that the City fund a Health Reimbursement Account (HRA) for each employee equal to the employee’s deductible, a maximum of $2,500/$5,000 (single/family) per employee to cover the City’s potential liability.
Timing Considerations
The City is targeting November 3 through November 17 for open enrollment for health insurance.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends City Council approve the attached Resolution authorizing the City Manager to enter into the health benefit plan contract with TrueRX. Staff also recommends the legislation be passed as an emergency measure, so it is in place for open enrollment.
Submitted by,
Thomas J. Sheridan, City Manager,
Brian Griffith, Director - Assistant City Manager
Suzanne Havranek, HR Manager