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Bedford to renew employee medical and dental plans with Cigna; premiums to rise about 11.8%
Summary
The City of Bedford accepted staff’s recommendation to renew medical and dental coverage with Cigna beginning Oct. 1, 2025, after a presentation showing an 11.8% renewal increase tied to high plan utilization. Staff will pass a portion of the premium increase to employees.
The Bedford City Council on Tuesday approved a resolution authorizing the city to renew employee medical and dental insurance with Cigna effective Oct. 1, 2025, after a presentation from the city’s benefits consultant that recommended renewal despite an anticipated premium increase.
Human Resources Director Stephanie Ayers introduced Andrew Weager, senior account executive with HUB International, who reviewed plan experience, utilization and the proposed renewal. Weager told the council the city’s current plan is running a high loss ratio—about 92% in the Cigna reports, and closer to 100% when final “runout” claims from the prior Aetna contract are included—driving the carrier’s renewal request. Cigna’s renewal came in at an overall 11.8% increase (just under the 12% cap the carrier offered as part of last year's best and final deal). Weager said that without last year’s rate cap, the renewal could have been far higher.
Weager recommended no benefit design changes other than required IRS indexing of HSA deductibles, and he highlighted a $25,000 wellness fund and a $10,000 communications fund included in Cigna’s offer. Staff also proposed modest employee premium contributions for the high‑deductible HSA plan (from $0 to $20 per month for single coverage) and higher contributions on the copay plan; overall the city would still fund roughly 84.6% of total medical costs under the proposed contributions.
Ayers and Weager said the city would add a HUB call center patient advocacy service (cost: $1 per employee per month) and use Cigna’s communications funds to offset that cost. All other lines (dental, vision, life and disability insurance, flexible spending accounts and HSA administration) were recommended to renew with no design changes.
After questions from the dais about wellness fund use and how costs would affect employees, the council voted to authorize the city manager to execute the agreement with Cigna. Council Member Gagliardi moved to approve; Council Member Sable seconded. The motion passed unanimously.
Council members and staff said they will continue monitoring claims and may issue a request for proposals in 2026–27 if plan experience deteriorates further and the carrier rate cap is no longer available.
