Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
City council approves switch to FMIT/UnitedHealthcare for employee medical plan, citing $108,000 annual savings
Summary
After an RFP, staff recommended moving Brooksville's employee medical coverage from Cigna to FMIT through UnitedHealthcare; council approved the change and authorized the city manager to execute contracts, citing roughly $108,484 in estimated annual savings and increased employer contributions for dependents.
City staff presented results of a competitive RFP and recommended switching the city's employee medical plan from Cigna to FMIT through UnitedHealthcare, which staff said would lower projected premiums by about 10% and yield estimated annual savings of approximately $108,484.
Kyle Martin, the city's human-resources director, told council the current annual premium was about $1,201,873 and that Cigna's renewal reflected an 8.4% increase (an additional ~$101,017). He said the FMIT/UnitedHealthcare option would reduce the total annual premium to roughly $1,093,004 while enabling the city to increase employer contributions for dependent tiers (employee+children employer share moving from ~64% to 75%; employee+family from ~46% to 65%). "This recommendation provides enhanced benefits for employees with producing an estimated annual savings of approximately a $108,484," Martin said.
Councilmembers praised staff for the procurement work and adopted the recommendation by motion and roll-call vote (adopted 4-0). Council also authorized the city manager to sign the necessary service documents and directed that the new plan be effective with the plan year beginning Oct. 1, consistent with open-enrollment timelines.
