Title
Authority for the City Manager to sign all contracts relating to the City's selection of Cigna Healthcare for the provision of the City's employment benefits beginning January 1, 2027, such benefits to include medical, dental, and vision.
Summary
It is proposed that the City of Pflugerville select Cigna Health Care to provide medical, prescription, dental, and vision benefits. In calendar year 2027, the Medical and Prescription benefit plan will cost an estimated $5,377,764. Employees pay approximately $665,838 in premiums towards their medical and prescription coverage. The City's share, covering both the plan and the City’s Health Savings Account (HSA) contributions, is expected to be approximately $4,711,926 which is within the FY27 budgeted amount of $5,324,127.
All dental proposals received represented a 40% increase. Cigna offered the best rates to the City for dental benefits and will offer a choice of two dental plans for employees. The dental plan will cost an estimated $375,313 per year. The City's portion is $274,597 and the budgeted amount is $178,000. Savings from the medical and prescription plan will help cover the overage in dental. Vision benefit premiums are paid by employees and there is no cost to the City.
In August 2026, the City partnered with HUB International to complete a Request for Proposal (RFP) for medical, prescription, dental, and vision benefits effective January 1, 2027. Working with HUB and Cigna to bundle medical, prescription, dental, and vision benefits, the City is able to make modest modifications and keep employee contributions aligned with last year's prices. Cigna was the most competitive medical and prescription bid.
The City will offer three medical and prescription plan options to employees in 2027. Due to the competitive medical rate, the City intends to minimize the impact on employees' premium costs through budget savings. The result is a plan designed to minimize increases to employee premiums w...
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