Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve the Contract with Cigna Health and Life Insurance Company (Cigna) as the City’s Medical Benefits Provider
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Submitted By: Natalie Cabrera, Director, Human Resources
Strategic Plan Link: The City’s Mission to utilize fiscal responsibility.
Summary Brief (Agreements/Contracts only)
1. Prepared by: City of Port St. Lucie and Cigna Health and Life Insurance Company (Cigna)
2. Parties: City of Port St. Lucie and Cigna Health and Life Insurance Company (Cigna)
3. Purpose: Medical benefits services
4. New/Renewal/Modified: New
5. Duration: 10/1/26 through 9/30/29 with one (1) additional one (1) year renewal option
6. Benefits to Port St. Lucie: Flat costs in Year 1; Expanded provider network
7. Cost to Port St. Lucie (Annual and Potential): $23,150,045.00 annually. Starting October 1, 2028, Cigna may increase the administrative fee by no more than three percent (3%). This three percent (3%) cap applies to each year after October 1, 2028, including any renewal years.
Presentation Information: Staff is available to answer any questions the Council may have.
Staff Recommendation: Move that the Council approve the contract with Cigna.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the contract with Cigna.
2. Move that the Council provide staff with direction.
Background: The City, through its third-party administrator, released a Request for Proposals to the market for medical benefits. Based on the proposals received, and after conducting due diligence, it was determined that Cigna Health and Life Insurance Company best meets the City’s objectives of providing quality healthcare coverage while supporting the City’s long-term financial and operational goals. On July 13, 2026, City Council approved the conceptual selection of Cigna. Before Council for consideration today is the negotiated contract.
Issues/Analysis: City staff has worked in conjunction with Cigna to negotiate and finalize a Master Services Agreement, which includes an Administrative Services Agreement (“ASO”) with mutually acceptable terms and conditions. Under the Contract, Cigna will provide administrative services for the City's employee health plan, including claims processing and adjudication, benefit determinations, claims payments, enrollment and eligibility administration, customer service, reporting and audit support, and pharmacy benefit management services, as applicable, in accordance with its standard ASO Agreement and coverage policies. In addition, Cigna will provide an annual contribution of $250,000 to support the City's employee wellness program.
Financial Information: Premium rates were approved by City Council on July 13, 2026. Contribution rates applicable to both the City and the Employees for FY 26/27 will remain as charged during FY 25/26. Future-year contribution amounts for both the City and Employees will be adjusted in accordance with the methodology that has been historically applied.
Special Consideration: The medical plan with Cigna maintains the City’s existing plan design and benefit structure, providing continuity of coverage for eligible employees and their dependents. Cigna’s network offers expanded access to in-network physicians and specialists.
Location of Project: N/A
Attachments:
1. Contract between the City of Port St. Lucie and Cigna Health and Life Insurance Company
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 26167-06
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.