Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute An Agreement With Cigna Health And Life Insurance Company For Stop-Loss Insurance Coverage In An Annual Amount Up To $961,837.80 For The Period From January 1, 2027, Through December 31, 2027, In Accordance With Section 38.41(C)(10) Of The Procurement Code. (Insurance)
Strategic Plan Focus
Employee Development & Empowerment
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
Commission approval is requested to renew the City’s stop loss insurance coverage with Cigna Health and Life Insurance Company for the City’s self-funded medical and prescription benefit program for the period January 1, 2027 through December 31, 2027. Gehring Group reviewed the 2027 renewal and recommends maintaining the current Individual Specific Limit of $750,000. Cigna’s renewal reflects an 8.0% increase, with the base annual premium increasing from $809,580.00 to $874,398.00, which is below the approximately 15% average industry renewal increase cited in the renewal analysis. The requested annual authorization of up to $961,837.80 includes a 10% contingency for potential increases in employee enrollment.
Fiscal Impact:
Funding for the purchase of stop loss insurance will be available in the FY 2027 Operating Budget in account number 558.112006.51900.591990.000000.000.000, 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