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Tomball plans switch to Cigna for major medical; budget includes 5% placeholder for FY27
Summary
City staff told council they will change major medical vendors from Blue Cross Blue Shield to Cigna, noting a modest current-year savings and a 5% placeholder in the FY27 budget in case premiums rise next year.
City staff told Tomball City Council on July 20 that the city solicited bids for major medical and will change vendors from Blue Cross Blue Shield to Cigna. Staff said the current-year contract will reduce costs by about 1% compared with the existing premium, and they have left a 5% placeholder in the FY2027 budget to cover potential premium increases next year.
A council member asked what the 5% represented in dollars; staff responded that the figure is approximately $200,000. "We went to bid on major medical and we are going to be changing from Blue Cross Blue Shield to Cigna," staff said, noting the move was projected to yield a small immediate savings while keeping coverage comparable. Staff cautioned that the vendor submitted a two-year package and future premium changes will depend on loss ratios and claims trends.
Council members pressed staff to quantify impacts and to confirm that no increased employee premium share is proposed; staff said the current-year savings will be absorbed in the budget and not passed to employees. Staff also described a placeholder in the budget for a market-adjustment study and for potential cost-of-living adjustments pending final market study results.
Council asked for more detailed line-item and dollar breakdowns in the budget documents to make employee-benefit impacts clear to the public. Staff agreed to supply the requested breakdowns in subsequent materials and at future workshops.
