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Insurance committee forwards Cigna recommendation for medical and dental administration to council
Summary
The Middletown Insurance and Claims Committee on May 5 voted to forward a resolution recommending Cigna as the preferred medical and dental benefits administrator to Finance & General and the Common Council, citing cost and network analyses; pharmacy services remain a separate procurement.
The Middletown Insurance and Claims Committee voted May 5 to forward a resolution to the Finance & General Committee and the Common Council recommending Cigna as the town’s medical and dental benefits administrator.
Kristen Holden, the town’s risk manager, told the committee the RFP evaluation used 12 months of claims data and a financial analysis, and that Cigna emerged as "the clear, front runner with that." She said Anthem failed to provide critical requested information, leaving Cigna and Aetna as the medical finalists.
Rob, a consultant presenting the analysis, said the financial review showed "Cigna as the incumbent, winds up as the lowest cost for the medical." The committee was also told that on dental coverage Delta Dental sometimes produced lower pricing, but Cigna’s overall proposal scored better when administrative fees and network metrics were considered.
The recommended contract schedule in the resolution calls for a transition that would have the new agreement take effect Oct. 1, 2026, with an initial term running to June 30, 2029, and options to extend for two additional years. Holden said the town negotiated a short extension of the current contract to allow time for transition if a new vendor were selected.
Holden clarified that prescription benefits are not part of this RFP: "This RFP is solely for the medical and the [dental]," and the pharmacy benefit will be procured separately with the contract for drug benefits expiring Jan. 1, 2027.
A committee member moved to accept the resolution in its current form and forward it to F & G and the Common Council; Leslie seconded. Committee members confirmed legal review had been completed and the chair announced the resolution passed and would be forwarded for final consideration.
The resolution and the consultants’ evaluation will now be considered by Finance & General and then by the Common Council; no final council vote was recorded in the meeting transcript.
