Dallas will eliminate its Blue Choice Copay PPO health plan on January 1, 2027, as police and firefighter association leaders raise retention concerns and the city works toward its voter-approved 4,000-officer requirement.
City Council approved the change September 16 for Texas-based active employees and retirees younger than 65. The two remaining options, a primary care physician (PCP) plan and a health savings account (HSA) plan, will both use the smaller Blue Essentials network.
The benefits decision comes as Dallas faces two public-safety commitments under Proposition U: increasing police staffing and keeping starting pay and non-pension benefits competitive with other departments.
The staffing promise includes benefits
As previously reported by The Dallas Express, Dallas had 3,410 sworn police officers in September, 590 short of the voter-approved 4,000-officer requirement. The city’s fiscal year 2027 plan projects 3,651 officers by September 30, 2027, still 349 below that level.
The charter also sets a top-five regional objective for combined starting police salary and non-pension benefits, excluding sign-on bonuses. The comparison covers police departments in cities with more than 50,000 residents in Dallas, Collin, Tarrant, Denton and Rockwall counties.
Dallas must hire a third-party firm each year to survey those compensation packages and report the findings to City Council. Health benefits form part of that comparison.
Association leaders raise retention concerns
Dallas Police Association President Sean Pease has received requests to serve as a reference for members considering other agencies, while Dallas Fire Fighters Association President Chris Peterson says firefighters are looking elsewhere, DallasTX.city reported October 6, citing WFAA interviews.
The report does not establish how many officers or firefighters have resigned because of the benefits change.
The PPO covered 53% of Dallas employees, including police officers and firefighters, FOX 4 reported in August.
The city’s cost argument
“Our goal is to continue providing quality, affordable coverage while responsibly managing rising health care costs,” City Manager Kimberly Bizor Tolbert said in an August 13 statement.
Tolbert warned that without adjustments, health costs would consume more city resources otherwise available for essential services, employee compensation and staffing.
Retaining the PPO could require employee contribution increases of approximately 40% to 57%, or additional city contributions of up to $9.9 million, according to the city’s September memo. That estimate describes the projected cost of keeping the plan.
The approved benefits package lists $257.99 million in Employee Benefits Fund expenditures, supported by projected revenue of $263.99 million: $175.39 million from the city and $88.60 million from employees and retirees.
What employees will pay
The city’s 2026 guide and 2027 guide show that costs depend on an employee’s current plan, salary and coverage tier.
For a full-time employee earning $80,000 with family coverage, each scheduled PPO deduction is $403.79 in 2026. In 2027, the PCP option costs $354.08 and the HSA option costs $371.13. The city takes those deductions from 24 paychecks annually.
Existing PCP participants at that salary move from $285.55 to $354.08 per deduction, about $1,645 more annually in premiums. HSA participants move from $265.10 to $371.13, about $2,545 more annually.
The HSA also moves from Blue Choice to Blue Essentials and adds primary care selection and most specialist referrals. The PCP family deductible rises from $3,000 to $4,000, while its family out-of-pocket maximum increases from $12,700 to $13,700.
The September memo reports approximately 99% overlap among providers city members used during the previous 12 months, based on Blue Cross and Blue Shield of Texas data. Employees still need to check whether their specific providers participate.
Active employees have through October 16 to enroll. The 2027 guide warns that their current elections will not automatically carry over and that employees who do not enroll will have no city medical coverage in 2027.
