HomeMy WebLinkAbout2019-10-28 19-412 Order
10/28/201919-412
10/28/2019
19-412
Human Resources
Order
N/A
Title, Order
Authorizing the Execution of a Contract for Group Health Insurance with Cigna
This order would authorize a contract for group health insurance with Cigna. On August 7, 2019, the
City received eight (8) responses to its Request for Proposals (RFP) – Group Health Insurance
Program. The RFP included a request for several options including fully insured group plans similar
to the City’s current benefits, high deductible health insurance plans with a Health Savings Account
(HSA), and self-insured health insurance plans. The overall total annual cost submitted for the
group health insurance program beginning January 1, 2020 for active employees ranged from
$9,234,465 to $11,190,618.
The RFPs were reviewed with the City's Health Insurance Advisory Committee which includes city
wide departmental staff and the City's health insurance broker from Cross Insurance. The
recommendation from the committee is to maintain health insurance benefits through Cigna. The
reasons are as follows: overall employee satisfaction with Cigna services; and inclusion of a high
deductible plan with an HSA option; and no proposed cost increase for 2020.
If approved, the committee recommends that the city provide financial incentives for employees to
make the change. First, it is recommended that those who enroll in the high deductible/HSA plan
receive a dollar-for-dollar match up to the 2020 IRS limits of $3,550 for individual and $7,100 for
family coverage. Additionally, it is recommended that the fund be paired with a first year only
up-front contribution of $250 for a single employee and $500 for an employee plus child or family
plan.
Finance Committee
10/28/2019
Recommend for passage
Consent
10/28/201919-412
CITY OF BANGOR ORDER
10/28/2019
19-412
Tremble
Authorizing the Execution of a Contract for Group Health Insurance with Cigna
Whereas; the City is currently in a health insurance renewal period with the contract with Cigna set to expire
on December 31, 2019,and
Whereas; the City received eight (8) responses to its Request for Proposals (RFP) – Group Health Insurance
Program, bid number P20-01, and
Whereas; the current health insurance provider, Cigna, had the lowest bid and provided the best overall plan
options, which include a high deductible plan with an Health Savings Account,and
Whereas; the City will provide a dollar-for-dollar matching to the HSA plan for employees enrolled in the 2020
plan year, with an up-front contribution of $250 for a single employee and $500 for an employee plus child or
family plan. City contributions and matching are capped at the 2020 IRS limits on HSA plans of $3,550 for
self-only and $7,100 for family coverage.
Be it Ordered by the City Council of the City of Bangor that, the City Manager is Authorized to Execute a
Contract for Group Health Insurance with Cigna.
IN CITY COUNCIL
OCTOBER 28,2019
CO 19-412
PASSED
CITY CLERK