CC MEETING: December 3, 2024
DATE: November 20, 2024
TO: Erin Rinehart, City Manager
FROM: Samantha Dean, Director of Workforce Services
Chrystal Davis, Assistant City Manager
Title
Consider Authorizing The City Manager To Enter Into An Agreement With Cigna Pursuant to RFP # 24-012 for Medical/Rx Stop Loss Insurance In An Amount Not To Exceed $990,709.
Body
BACKGROUND:
The City issued RFP #24-012 for various employee medical and health benefits, including Medical/Rx Stop Loss Insurance on behalf of the City of Carrollton. Even though stop loss was included in the RFP, the award for these services was not able to be finalized until the required reporting through September was available for the Stop Loss vendors to provide firm and final offers.
The City's Benefits Consultant, HUB International was presented with proposals from 9 vendors who could provide Medical/Rx Stop Loss Insurance, including the incumbent SA Benefits - Zurich. After reviewing the submissions, Cigna was chosen based on the criteria relative to cost, claims processing ability, integration into existing systems and references to be the provider for Medical/Rx Stop Loss insurance.
FINANCIAL IMPLICATIONS:
Cigna issued a quote for Medical/Rx Stop Loss Insurance that would cost the City $990,709 annually and represents a 4.4% or $42k increase over current rates. Cigna has also agreed to issue a $50k premium credit for packaging Stop loss with other administrative services it provides the City.
Funds for these employee benefits will be paid out of the Employee Health Fund, which is funded by employer and employee contributions.
Participation in the agreements for Cigna guarantees rates for (1) one year with a 45% rate cap, no new lasers at renewal and includes (2) two-year renewal options. The effective start date of this agreement is January 1, 2025.
IMPACT ON COMMUNITY SUSTAINABILITY:
Offering the aforementioned benefits aligns with the City Council's goals and objectives of attrac...
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