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Council approves move to Cigna for town employee medical plan; overall town cost to rise about $161,000
Summary
After a market search and review of network coverage and ancillary quotes, staff recommended and the council unanimously approved switching the town’s medical plan to Cigna effective Oct. 1, 2025. The broker said Cigna’s network matched 96% of used providers and offered several value‑added programs; the net
The Fort Myers Beach Town Council on Sept. 11 approved staff’s recommendation to change the town’s group medical coverage to Cigna, effective Oct. 1, 2025, after a market solicitation that compared quotes from Florida Blue and Cigna and reviewed ancillary vendors for dental, vision and disability.
Human Resources Director Talisa Oliveira and consultant Athena Eurchard (Gering Group) told council the town’s medical renewal posed an unusually large increase with the current carrier (an 85% renewal with Florida Municipal Insurance Trust driven by large claim activity). The broker said Cigna’s proposed fully insured quote would increase the town’s medical premium by about 18% over current rates; combined with savings in other lines the net impact to the town’s operating budget is roughly $141,664 for the new plan year.
Oliveira and Eurchard described tradeoffs in plan design: Cigna’s offer raises some member cost‑sharing (family deductible increases; higher office‑visit copays for some services) but preserves broad network access and includes a $10,000 wellness fund and a $2,000 optional services fund to help transition administrative setup. Eurchard said Cigna’s national “seamless” network and one‑on‑one customer support (Cigna OneGuide) were strengths compared with alternatives and that Cigna matched 96% of providers used historically by town employees.
Council approved a package of moves that also included changing dental, vision and life/disability carriers to achieve savings: the council accepted a dental proposal from Standard (replacing Lincoln) with a 20% decrease in dental premiums, a vision contract with VSP through Standard at a stable cost, and basic life and disability coverages with multi‑year rate guarantees. The combined package included small buyups for expanded EAP visits as an optional town purchase.
Why it matters: the decision affects employee benefits, recruitment and the town’s FY 2025–26 budget. Councilors praised staff for narrowing the cost increase from an 85% renewal to a budgeted increase and for pursuing ancillary savings. The resolution passed unanimously.
Ending: Town staff will finalize carrier setup, distribute member communication and ID cards after Oct. 1, and operate open enrollment so employees can make plan elections prior to the effective date.
