Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Execute A One-Year Agreement With Cigna For Stop Loss Insurance In An Annual Amount Not To Exceed $575,403.40.
Strategic Plan Focus
Employee Development & Empowerment
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The City holds stop loss insurance for both Individual Stop Loss (ISL) and Aggregate Stop Loss (ASL) with Cigna, who also administer the City’s health insurance program. The current contract will expire on December 21, 2021. The City’s benefits consultant, the Gehring Group, issued a Request for Proposals on April 23, 2021, seeking proposals for stop loss insurance coverage. Aetna, AvMed, Cigna, Humana, Optum, Symtera, TMS Re, and United Healthcare provided proposals for stop loss insurance. Humana, Optum, Symtera, and TMS Re were disqualified due to either network service area deficiencies, non-competitive pricing or retiree prevalence. Both Cigna and United Healthcare proposed a bundled program of medical administration, pharmacy benefit management, and integrated stop loss insurance. Cigna offered a lower aggregate stop loss claims corridor resulting in reduced maximum claims exposure from 125% to 120% off expected claims. After careful review, it was determined that Cigna offered the most competitive and advantageous stop loss insurance proposal based on pricing, contract terms, and the pairing of claims administration with stop loss coverage. The Gehring Group and the City are recommending that the City remain with the current stop loss insurance provider, Cigna, for an annual not to exceed amount of $575,403.40, which includes a ten percent buffer to allow for fluctuations in costs. This Resolution seeks City Commission authorization to implement a one-year agreement for Stop Loss Insurance between Cigna and the City for an annual not to exceed amount of $575,403.40.
Fiscal Impact:
Funding for this service will be available in the Fiscal Year 2022 Operating Budget in account number 558.112006.51900.591990.000000.000.000 and will be budgeted in subsequent fiscal years, subject to approval and adoption by the City Commission.
Recommended for inclusion on the agenda by:
Tammie L. Hechler, Director of Human Resources
George R. Keller, Jr. CPPT, Deputy City Manager