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Integra recommends Pan American option for Seaford benefits; introduces pharmacogenomics pilot
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Summary
Chris Smith of Integra Administrative Group recommended the city accept Pan American Life Insurance Company Option 1D for the 2026–27 benefit year (projected 5.7% increase, maximum 9.9%) and introduced a voluntary Matrix GX pharmacogenomics program that the presenter said could reduce adverse drug reactions.
Chris Smith of Integra Administrative Group presented Seaford’s employee and retiree health‑benefit renewal options and recommended selecting Pan American Life Insurance Company Option 1D for the 2026–27 plan year.
Smith told the council that IAG uses national surveys to estimate health‑care cost trends and reported a four‑year blended projected increase of 7.8%; the city’s first 10 months of 2025 medical and prescription costs exceeded projection by about 2.1 percentage points but remain roughly 11% lower than comparable municipal plans. Based on quotes solicited from carriers, Smith recommended Pan American Option 1D with a projected cost increase of 5.7% and a possible maximum increase of 9.9%.
Smith also described the Matrix GX program, which he characterized as a voluntary pharmacogenomics test aimed at identifying medications that might cause adverse reactions for individual members. He summarized vendor findings, saying the vendor reports about 50% of people on prescription drugs experience ineffective therapy or side effects and that adverse drug reactions were reduced by roughly 30% in a study of several thousand patients when prescriptions were aligned to test results. Smith also said the FDA lists adverse drug reactions among leading causes of death in the United States; the council asked clarifying questions about how current‑year costs and the proposed option’s estimated costs compare.
Council follow-up and retiree costs: Smith reported the city’s retiree medical/prescription coverage is administered through the Hartford Group Insurance Trust (HGIT), effective 1/1/2026, at a rate of $615.53 per retiree; 2026 retiree dental was listed at $36.58 and vision at $22.22. When Mayor asked about why Option 1D could come in below the current-year actuals, Smith said recent months’ cost trends were improving and the renewal calculation extrapolates 10 months of data to 12.
Outcome and next steps: The presentation was informational. A staff member noted that, based on the renewal information, staff was not recommending plan design changes at this time. No formal council action on the plan selection or Matrix GX pilot was recorded in the meeting transcript provided; staff may return with a formal recommendation or contract for future council consideration.
