Rutherford County approves Sigma to administer employee health benefits, citing multimillion-dollar savings

Rutherford County's purchasing committee voted unanimously on May 28 to accept Gallagher and the county risk management office's recommendation to award Sigma the contract to administer the county's medical, dental, vision and pharmacy ASO benefits, effective Jan. 1, 2027.

Gallagher consultant Marissa Con Smith, presenting the results of a three‑step evaluation conducted March 17–May 25, told commissioners the process produced multiple qualified bidders: six for dental, three for medical, four for pharmacy and eight for vision. She said a pharmacist‑led review of pharmacy proposals, led by independent reviewer Cali Roersonson, showed that separating (carving out) pharmacy would have been less competitive for the county in this procurement and that Sigma and Blue Cross were the frontrunners.

"Our recommendation is to approve Gallagher's and the insurance and risk management department's recommendation of Sigma's medical, dental, vision and pharmacy ASO proposal to be effective January 1, 2027," Marissa Con Smith said.

Staff said keeping medical and pharmacy together with Sigma would minimize disruption for employees: the presentation noted that a move to Blue Cross could have disrupted roughly 642 members’ pharmacy access. Gallagher estimated the award would reduce county costs by about $1.3 million in the first year and about $4.4 million over three years.

Risk management director Ed (identified in the meeting as "Ed") and Gallagher noted additional service features tied to keeping benefits with a single administrator, including coordination for 29 employees with qualifying medical conditions and a 24‑hour dental call center that would assist in urgent situations. Officials also discussed plan‑design options for dental, such as on‑site cleanings and designated county clinic days, which would be evaluated after awarding the contract.

Commissioners pressed staff on the vision network. Michael Smith had cast a no vote previously in the insurance committee over vision‑network concerns; staff said Sigma agreed that an alternate vision network (VSP/BSP) could be added before open enrollment and that adding that network would not change the county's administration rates. Staff recommended any addition be made at open enrollment to avoid midyear administrative complications.

Marissa Con Smith told commissioners that stop‑loss coverage will be procured later in the year: stop‑loss bids will be solicited in October to allow more claims experience to produce more accurate pricing. She said smaller procurements (COBRA, HSA and point solutions) will follow during the summer.

The committee approved the motion to award Sigma by roll call (Commissioner P: yes; Mr. Boy: yes; Mr. Gu: yes; Commissioner Phillips: yes; Commissioner M: yes; Commissioner Johnson: yes; Chair McCart: yes). The motion was moved and seconded at the meeting and recorded as carried.

Next steps: the purchasing office will complete remaining procurement tasks, the county will issue an amendment to solicit stop‑loss quotes in October, and staff will return with any recommended plan‑design changes for county consideration prior to implementation.