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Council approves Cigna renewal with plan changes, 9.4% rate increase and higher stop‑loss attachment
Summary
Council approved renewal of the city’s employee health plan with Cigna; plan design changes (higher out‑of‑pocket limits and ER copay, formulary change) and a proposed stop‑loss attachment up from $150k to $200k were part of the renewal package; council approved 5‑2.
Pearland City Council approved a one‑year renewal with Cigna for the city’s employee health, dental, vision and employee assistance plans and accepted plan design changes intended to control sharply rising claims.
Presentation: Wayne Parker of HUB International and city staff presented plan‑year experience and proposed design changes. Year‑to‑date through April, city per‑capita health costs rose sharply, driven by a higher number of large claims: the consultant reported eight large claimants (over $75,000) accounted for roughly 21% of total claims; through June that exposure increased to 10 claimants representing about 22% of costs. To address escalating claims,…
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