Title
An Ordinance approving the Calendar Year 2027 Employee Benefit Programs; approving agreements for services by and between the City of Lee’s Summit, Missouri and Cigna Health and Life Insurance Company, Metropolitan Life Insurance Company, Hartford Life and Accident Insurance Company, CuraLinc, LLC, P&A Group, and Allstate Insurance Company, authorizing the City Manager to execute agreements and other documents as necessary to administer employee benefits for Calendar Year 2027 by and on behalf of the City. (F&BC 9/15/26)
Body
Issue:
The City has contracts with all existing providers that allow for renewal.
While it was anticipated that our renewal rate would be 25%+ due to our experience, the initial 2027 renewal was returned at a 12.3% increase. The City’s new benefit broker, Alliant Insurance Services, worked closely with Cigna and the City to adjust and make changes where necessary to get within our target 10% budgeted increase. The changes laid out below have been made to meet our current budget target, continue to obtain more favorable annual increases, and maintain quality medical plans for city employees.
Key Points:
Medical renewal with Cigna will involve the following changes:
· Continue to offer a PPO and HDHP plan, with a broad and narrow network option.
· Increases to Deductible, Co-insurance, and Out of Pocket Maximums on the PPO plan in alignment with industry and local benchmarks.
· Minimal increases to deductible and Out of Pocket Maximums on the HDHP (only IRS required updates).
· Employer HSA increases in alignment with industry and local benchmarks.
· Move to a 4-tier premium structure to better align premiums to actual plan costs.
· Enhancing the virtual provider benefit to no copay or out of pocket expense to members for virtual care, including well visits, dermatology and behavioral health.
-Dental renewal with Cigna will have a 7.5% premium increase.
-Vision renewal with MetLife will have a 0% premium increase.
Prooposed Motio...
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