Item:
Title
Request to authorize the County Manager to enter into an updated contract with Cigna Healthcare (Cigna).
Body
Date of BOCC Meeting: June 23, 2025
Request for Board Action:
Agenda Text
The Board is requested to authorize the County Manager to enter into a contract with Cigna Healthcare (Cigna).
Cigna is the County’s current third party administrator, Pharmacy Benefit Manager and Stop Loss Insurance provider. The County’s current agreements with Cigna have an early exit penalty through the end of FY 2025-2026, however due to the size of the projected claims funding increase, Request for Proposals from alternative vendors were requested with an effective date of July 1, 2025.
The County obtained proposals or declinations to quote from five (5) medical administrators, nine (9) pharmacy benefit administrators and twenty-three (23) stop loss insurance carriers. The County’s staff analyzed the various proposals with the support of the County’s employee benefit consultants.
The County’s analysis of the alternative options included, fixed cost pricing, performance guarantees, medical claims repricing, pharmacy discount and rebate guarantees and member network and pharmacy formulary disruption.
Cigna’s proposed pricing in response to the RFP, for the 2025-2026 fiscal year included significant increases in pharmacy rebate guarantees compared to the current year and presented the most competitive overall proposal.
Alignment with Strategic Plan: This item aligns with Financial Stewardship
Resource Persons: Kathy Everett-Perry, CHRO/Chief Employment Counsel and Deidre Gonzales, Senior Human Resources Benefits Manager.
County Manager’s Recommendation: The County Manager recommends that the Board authorize the County Manager to enter into an updated contract with Cigna Healthcare with an effective date of July 1, 2025 through June 30, 2028, and to execute future amendments including renewals.
Signature
County Manager: ____________________________