Item:
Title
Approval to Continue Relationship with Health Plan Vendor
Body
Date of BOCC Meeting: May 26, 2026
Request for Board Action:
Agenda Text
The Board is requested to approve the continuation of a vendor relationship with Cigna.
Cigna is the County’s current Third-Party Administrator, Pharmacy Benefit Manager, and Stop Loss Insurance provider. With medical plan costs continuing to rise, Requests for Proposals were issued for a July 1, 2026 effective date, with the goal of obtaining more competitive pricing.
The County obtained proposals or declinations to quote from five (5) medical administrators, nine (9) pharmacy benefit administrators and twenty-three (24) stop loss insurance carriers. An evaluation committee comprised of County 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 discounts and rebate guarantees, and member network and pharmacy formulary disruption.
Cigna’s proposed pricing included significant increases in pharmacy rebate guarantees compared to the current year and were 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 Manager.
County Manager’s Recommendation: The County Manager recommends that the Board authorize the County Manager to enter into the updated contract with Cigna, current incumbent beginning July 1, 2026, through June 30, 2029, and to execute future amendments including renewals.
Signature
County Manager: ____________________________