Item Coversheet
      

5919 MAIN STREET .  NEW PORT RICHEY, FL 34652 . 727.853.1016


TO:City of New Port Richey City Council
FROM:Debbie L. Manns, City Manager
DATE:9/5/2019
RE:Group Healthcare Renewal

REQUEST:

To request is to enter into a contract with CIGNA health insurance company in respect to the group health insurance benefits for the full-time employees of the city.




DISCUSSION
:

The City’s present group health care benefit provider, United Health Care, was asked to provide a renewal quote in respect to the continuation of services for the upcoming program year. In that regard, the quote was received at an increase in the amount of 14% over the cost of last year’s program. 

Since the quote was considerably higher than expected, it was determined that additional quotes would be obtained from alternate carriers.  In that respect, the most favorable quote was obtained from CIGNA who is a well-respected area insurance provider.  The cost associated with the CIGNA health insurance program is $1,267,075.82 which is a decrease in an amount of $131,627.50 in comparison to the premiums paid for last year’s program.  In addition to a savings in premium payments, CIGNA has indicated that they will donate $10,000 to the city’s Wellness Program for use in assisting employees in developing or maintaining healthy behaviors.

The health care platform provided by CIGNA (i.e. - coverage, copays and coinsurance) is identical to the current plan provided to the full-time employees of the city.




RECOMMENDATION:

The recommendation is to authorize the City Manager to enter into a contract with to provide group health insurance benefits to the full-time employees of the city.




BUDGET/FISCAL IMPACT:

Based on the current enrollment of employees, the cost to the City to provide group health care insurance will be $1,267,075.82.  The funding to cover this expenditure has been provided for in the FY 2019-2020 General Fund Budget.


ATTACHMENTS:
DescriptionType
2019-2020 Health Care Rate Schedule and Plan SummaryBackup Material
2019-2020 Employer/Employee Premium Cost Sharing MatrixBackup Material