Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute A Five-Year Agreement With Cigna Health And Life Insurance Company For Medical And Pharmacy Administrative Services In An Annual Amount Up To $994,644.20 For The Period January 1, 2027, Through December 31, 2031.
Strategic Plan Focus
Employee Development & Empowerment
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
Commission approval is requested to execute a five-year agreement with Cigna Health and Life Insurance Company for medical and pharmacy administrative services for the City’s self-funded medical and prescription benefit program for the period January 1, 2027, through December 31, 2031. Following a Request for Proposals, evaluation, and final negotiations, Cigna presented the strongest overall proposal and best value for the City. The proposal maintains the current medical and pharmacy administrative fee structure, provides a five-year rate guarantee, and includes a $150,000.00 first-year administrative fee credit. Cigna also provides annual wellness funding of $175,000.00, annual technology funding of $80,000.00, annual discretionary funding of $450,000.00, including $150,000.00 for functional medicine programming, and annual COBRA administration funding of $5,000.00. The requested annual authorization of up to $994,644.20 includes a 10% contingency for potential increases in employee enrollment.
Fiscal Impact:
Funding for the purchase of medical and pharmacy administrative services insurance will be available in the FY 2027 Operating Budget in account number 558.112006.51900.591990.000000.000.000, and will be requested in subsequent fiscal years’ operating budgets subject to approval and adoption by the City Commission.
Recommended for inclusion on the agenda by:
Tammie L. Hechler, Director, Human Resources
Adam Reichbach, Deputy City Manager