Largo Awards $6,132,300 Medical Insurance Contract to Cigna for 2009
By Bill Lopez
LARGO - After reviewing group medical insurance coverage and cost proposals, the Largo City Commission in its regular commission meeting Tuesday, awarded Cigna Insurance with a contract for 2009.
Susan Sinz, Largo Director of Human Resources, said the benefits staff considered proposals from Aetna, Blue Cross Blue Shield of FL, Cigna, and Humana to cover its 850 city employees for the next fiscal year.
She said they looked at cost, plan design, network coverage (network disruption), customer service, wellness and disease management, reporting, stability and references in recommending the Cigna proposal.
Cigna provided a superior package that originally included a proposed a 15.2% premium increase that was negotiated down to 8% increase by the benefits committee. The FY 2009 budget also includes a 2.95% rate reduction for use of the Cigna Care Network (CCN). CCN is a network of specialist physicians in 21 categories that Cigna has determined provides excellent service delivery and outcomes. By selecting and using CCN specialists, employees pay a $30 co-pay versus a $45 co-pay for non-CCN specialists.
The contract also includes a 3% rate reduction for achievement of a mandatory Health Risk Assessment (HRA) survey prior to January 1, 2009 for all employees and dependents over the age of 18 years. The results of the surveys provide Cigna with a means of early disease management, effective intervention and improved clinical outcomes reducing losses in productivity related to medical and disability issues.
Plan premiums include a 1.6% updated experience reduction that recognizes a favorable ratio of claims to enrollment. With these additional reductions, the premium increase comes to 7.65% for essentially the same plan design, including an open access component that discontinues the need for a Primary Care Physician (PCP) referral to a specialist.
Sinz indicated that Cigna would also provide $15,000 to support Wellness programming and communications in conjunction with the group plan for 2009.
City commissioners voted 7 to 0 to award of the contract to Cigna.
Contact Bill Lopez at email@example.com.
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