Cromwell board hears brokers after Cigna’s 52.4% renewal notice; asks for further negotiation

Brokers told the Cromwell School District Board of Education on Feb. 24 that Cigna proposed a 52.4% renewal for the district’s health plan and presented limited market alternatives, prompting the board to ask the brokers to resume negotiations and come back with updated offers.

"When we last got together, we dropped the bomb about the 52.4% Cigna renewal increase," broker Dave said, summarizing the consultants' outreach to carriers. He said Aetna supplied no competitive quote, UnitedHealthcare bid higher than Cigna, and Anthem produced the only meaningful marketplace alternative.

Greg, another broker, presented the consultants’ best-and-final figures: a combined town-and-board renewal with Cigna would mean an effective net increase to the board of about 35.79% (roughly $1,776,007.45); renewing only the board with Cigna would be about 33.47% (about $1,661,953). Anthem’s proposal produced a net board increase of about 31.89% (approximately $1,583,002.87). The town partnership — still pending official rates — was estimated by the brokers to produce a lower net increase to the board (about 28.3%, roughly $1,405,193) but would change plan design and likely raise employee contributions.

"The primary reason for that was we had a bunch of years of positive claims experience when comparing it to premium," the broker Greg said, explaining why claims history, not a single factor, drove the large renewal numbers.

Brokers cautioned that the partnership option is a three-year commitment with different benefit design, wellness requirements and potential penalties for employees who do not meet preventive-care or chronic-care requirements. They also said both Anthem and Cigna initially described their bids as "best and final" and declined to guarantee a second-year rate cap.

Board members pressed for negotiation tactics — for example, whether a firm letter of intent ("if you get to 25%, we'll sign") might prompt carriers to move. The consultants said small movements (one or two percentage points) were possible in rare cases but called deeper concessions unlikely given recent claims trends.

Members also requested that district leaders consult union representatives before any decision that would require reopening bargaining over health benefits. "If there is consensus from you all and the unions that they'd like to find a way to not go to the partnership, then we could come back," the broker said.

The board did not vote on a carrier. Instead it asked the consultants to continue negotiations, explore any remaining flexibility with Anthem and Cigna, and return with updated proposals at the March 10 meeting so the board could consider numbers before the Board of Finance review. No formal motion to change carriers was made at the meeting.

Why it matters: The board’s decision on benefits will affect the district budget and employee paycheck contributions. Brokers’ scenarios also indicated substantial increases in employee share under each option; the board emphasized minimizing staff impact and asked for clear comparisons of employee-dollar effects.

What’s next: Brokers will continue negotiating with carriers, the administration will consult union leadership about plan design and HSA implications, and the board expects updated proposal comparisons on March 10.