Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Issue A Blanket Purchase Agreement With Cigna For Stop Loss Insurance In An Amount Up To $876,550.40 From January 1, 2026, Through December 31, 2026, 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 desires to renew its stop loss insurance and continue providing protection to the City from unexpected high claimant costs. The Office of Human Resources requested that its benefits consultant, Gehring Group, conduct an analysis of the City's stop loss insurance. The Gehring Group evaluated various Individual Stop Loss levels and found that maintaining the $750,000 threshold would be more cost-effective, as the alternatives of $350,000 and $500,000 would incur significantly higher costs (15.4% and 7.9% increases, respectively).
It is the recommendation of the Office of Human Resources, in consultation with the Gehring Group, to renew the stop-loss insurance with Cigna at the current ISL threshold. Although there is a 7.9% increase in rates, it is still below the market trend of 15%, and the increase aligns with the City's established premium equivalents for 2026 employee contributions. Also, combining the stop loss vendor with the ASO administrator (Third Party Administrator) allows for faster and more accurate stop loss reimbursements to the City.
City Commission approval is requested to execute an agreement with Cigna to provide stop loss insurance for one year in an annual amount of $876,550.40 which includes a ten percent buffer to allow for fluctuations in cost.
Fiscal Impact:
Funding for this service will be available in the FY 2026 Operating Budget in account number 558.112006.51900.591990.000000.000.000.
Recommended for inclusion on the ag...
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