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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