title
Resolution Authorizing the City Manager to Enter Into a Professional Services Agreement with CIGNA Health and Life Insurance Company for Medical Insurance Coverage and Related Administrative Services
body
Department:
Human Resources
Meeting Date:
4/7/2026
Contact Name:
Kim Sampson
Public Hearing:
No
Contact Phone:
910-341-7840
Advertising Date/Advertised By:
N/A
Attachments:
Attachment #1: Resolution
PURPOSE:
The purpose of this resolution is to authorize the City Manager to execute a three-year professional services agreement with CIGNA Health and Life Insurance Company ("CHLIC") to serve as the City's third-party administrator for medical, pharmacy, and related services, replacing UMR.
BACKGROUND:
As part of the City's commitment to becoming an employer of choice, staff conducted a competitive Request for Proposals ("RFP") process to evaluate third-party administrative services for medical and pharmacy benefits. Five qualified vendors submitted proposals, which were evaluated by the City's Benefits Committee based on network access, service integration, financial terms, pharmacy rebate guarantees, customer service capabilities, transition support, and long-term cost sustainability.
Following this review, the Benefits Committee recommended CHLIC as the best overall option. The proposed partnership provides:
* A fully integrated medical, pharmacy, and behavioral health platform
* Access to a national provider network with expanded mental health coverage
* Significant prescription rebate guarantees
* Administrative fee waivers to support implementation and cost management
* Dedicated annual funding for wellness or technology initiatives
* 24/7/365 customer service support for employees and families
Importantly, the proposed transition is designed to result in minimal disruption to employees and retirees. The national provider network offered through CHLIC provides broad access to many of the same physicians, specialists, and healthcare faci...
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