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Approval of the Award of Employee Health Plan Third-Party Administration Services, Pharmacy Benefits Manager, and Dental Administration to Cigna HealthCare for $396,192 per Year for a Three-Year Period with an Option to Renew for Two Additional One-Year Periods; Approval of the Award of Vision Benefits to National Vision Administrators for $33,062 per Year for a Four-Year Period with an Option to Renew for One Additional One-Year Period; Approval of the Award of Health Savings, Flexible Spending, and Consolidated Omnibus Budget Reconciliation Act Administration to HSA Bank for $14,352 per Year for a Three-Year Period; Approval of the Award of Employee Assistance Program Services to Cigna for $28,244 per Year for a Three-Year Period; and Authorization for the City Manager, or her Designee, to Execute All Necessary Documents.
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ADMINISTRATIVE COMMENTS:
The City sent out a Request for Proposals on April 25, 2026 for medical Third Party Administration (TPA) services including Pharmacy Benefit Manager (PBM), dental, stop loss, vision, life/disability, Flexible Spending Accounts (FSA), Health Savings Accounts (HSA), Employee Assistance Program (EAP), and Consolidated Omnibus Budget Reconciliation Act (COBRA) Administration. A total of ninety-three (93) invitations were downloaded from Bonfire. Twenty-seven (27) vendors submitted proposals. After evaluations were conducted, it was determined that Cigna submitted the best proposal for TPA including PBM, dental, and EAP services; National Vision Administrators submitted the best proposal for vision benefits; and HSA Bank submitted the best proposal for HSA, FSA, and COBRA Administration. Funding is available in the health benefit trust fund.
RECOMMENDATION:
That City Council approve the awards and authorize the City Manager, or her designee, to execute all necessary documents as set forth in the caption above.