TO: Mayor Thomas J. Weisner
FROM: Alisia Lewis, Director of Human Resources
DATE: September 9, 2016
SUBJECT:
A Resolution Authorizing Renewal for Health Insurance Stop/Loss Coverage with Cigna. For the Period January 1, 2017 through December 31, 2017
PURPOSE:
To obtain approval to renew Stop/Loss Insurance for the City's OAP Health Insurance Plan for 2017.
BACKGROUND:
Cigna provided the City of Aurora with Stop/Loss coverage since 2016. Stop/Loss insurance provides excess coverage for PPO health insurance claims that exceed $325,000 per claim deductible.
DISCUSSION:
After soliciting proposals from five (5) stop/loss insurance carriers, the City received five (5) bids including the incumbent, Cigna. Cigna's 2017 proposal represents a 14.4% increase above their 2016 premium. A financial comparison is attached for reference. The City's health insurance consultant, Group Alternatives, is recommending renewal with Cigna for 2017 based on the combination of the existing positive relationship, premium quote, and proven track record of performance and compliance. Cigna is the lower bid this year, totaling $439,244 while maintaining a $325,000.00 per claim deductible.
IMPACT STATEMENT:
No impact.
RECOMMENDATIONS:
Place on Finance Committee agenda for approval to City Council.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing An Agreement for Health Insurance Stop/Loss Coverage with Cigna For the Period January 1, 2017 through December 31, 2017.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for t...
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