Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Execute A One-Year Blanket Purchase Agreement With Cigna For Stop Loss Insurance For An Annual Amount Not To Exceed $786,072.10, In Accordance With Section 38.41(C)(9) Of The Procurement Code. (Best Interest)
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 administers the City's health insurance program. The current contract will expire on December 31, 2024.
The City's benefits consultant, Gehring Group conducted an analysis that explores various alternatives in the ISL levels to determine the optimal threshold based on the City's historical large claims. Through this analysis, Gehring Group is recommending that the City not change their ISL threshold of $750,000 due to various factors including: premium changes, historical claims, and the current forecast of the large claimants.
In consultation with the Gehring Group, the Office of Human Resources recommends that the City remain with the current stop loss insurance provider, CIGNA, as combining the Stop Loss vendor with the Plan administrator allows for faster and more accurate stop loss reimbursements to the City. Also, having a few years data is needed to determine if the premium savings in the higher ISL since 2021 outweighs the additional exposure in claim activity.
Gehring Group was able to renegotiate only a 13.6% increase to the current stop loss rates, which below the 15% market trend, citing the bundling of services that CIGNA provides to the City as leverage.
Fiscal Impact:
Funding for this agreement is available in the FY 2025 Operating Budget in account number 558.112006.51900.591990.000000.000.000.
Recommended for inclusion on the agenda by:
Tammie L. Hech...
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