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County approves HUB recommendation to award employee health contracts to Cigna and The Standard
Summary
After HUB International presented best‑and‑final offers for RFP 25‑008, the McLennan County Commissioners Court accepted staff's recommendation to award third‑party administration and pharmacy services to Cigna and life/disability to The Standard, citing lower projected FY2026 cost under the Cigna offer.
County consultants from HUB International presented final offers for RFP 25‑008 on July 29, laying out tradeoffs between incumbent UnitedHealthcare and challenger Cigna for medical, pharmacy, spending accounts and COBRA administration, and between Standard and MetLife for life and disability products.
Liz Bebo of HUB summarized the finalists and highlighted program differences: "UnitedHealthcare is the incumbent, and Cigna was chosen as best and final," she said, and described Cigna's incentives — a $135,000 administrative fee holiday in year one, a $75,000 technology credit and an on‑site navigator — that staff said reduce the county's projected net cost. HUB's cost projections showed a large swing in the county's net exposure: roughly a $1.3 million projected deficit under the UnitedHealthcare offer versus a $151,000 shortfall projected with Cigna's proposal, driven largely by differing pharmacy‑rebate treatments and stop‑loss assumptions.
Purchasing and HR recommended that the court accept HUB's evaluation and authorize award: Cigna for TPA/pharmacy/stop‑loss/spending accounts and The Standard for basic and supplemental life and disability insurance. Commissioners approved the recommendation by motion without further amendment.
What this means: county staff will finalize contract language and work with the selected vendors on an implementation schedule that aims to begin coverage Jan. 1, 2026, including an employer communications and transition plan and an early‑enrollment/pre‑enrollment hotline for employees. Staff noted that the Secretary of State's office and other external timelines do not affect this procurement decision.
Next steps: staff will return with final contract documents and a proposed budgetary approach for any projected FY2026 shortfall.
