Title
RESOLUTION NO. 24R-07-122: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LAUDERHILL APPROVING THE CHANGE OF THE GROUP HEALTH INSURANCE PROVIDER FROM HUMANA TO CIGNA BASED UPON THE RECOMMENDATION OF THE EVALUATION COMMITTEE FOR RFP #2024-023; PROVIDING FOR A FIVE (5) YEAR TERM BEGINNING OCTOBER 1, 2024 AND ENDING SEPTEMBER 30, 2029 TO INCLUDE HMO AND POS COVERAGE PLANS; PROVIDING FOR AN EFFECTIVE DATE (REQUESTED BY CITY MANAGER, DESORAE GILES-SMITH).
Body
Request Action:
Requesting Commission approval for the change in group health insurance provider from Humana to Cigna. Humana announced that they will be exiting the Employer Group Health Market, by December 31, 2024, after serving the City of Lauderhill since 1989; therefore, the City released a request for proposal to secure a fully-insured Group Health Plan with HMO and POS Open Access Plan, with an effective date of October 1, 2024. The RFP Committee selected Cigna as the provider who could ensure accessible networks of qualify providers, maintain existing benefit level wherever possible, minimal prescription drug formulary disruption, and mitigate the cost of providing the health benefits for employees and eligible dependents and retirees, and the City of Lauderhill.
Need:
Cigna's top ranked proposal matches the City's existing benefits as closely as possible with an overall premium rate decrease for FY 25 after a 2% bundling credit when health insurance is purchased with dental insurance which would result in the estimated total annual premium of $8,954,6240 which is an estimated $6,094.00 savings from the current plant. These estimates are based upon headcounts just prior to the release of the RFP and does not include retirees. This also guarantees that the renewal for FY 26 is not to exceed a 10% increase.
Summary Explanation/ Background:
Cigna's proposal will allow the City to continue to provide excellent benefits to employees, their families, and retirees.
Attachments:
#1 - Health...
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