Subject:
Title
First Amendment to Premium Rider Policy and name change from Cigna Health and Life Insurance Company and Cigna Behavioral Health Inc. to Cigna Health and Life Insurance Company Evernorth Behavioral Health, Inc. and for requirements of County group medical benefits.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the Premium Rider Policy (Rider) and name change with Cigna Health and Life Insurance (Cigna), for County employee medical benefits.
• The Amendment acknowledges a name change from Cigna Health and Life Insurance Company and Cigna Behavioral Health to Cigna Health and Life Insurance Company and Evernorth Behavioral Health, Inc.
• The 2023 rider (dated January 1, 2023) amends the policy to delete the present Rider and replace it with the updated Rider to reflect the revised individual risk premium from $36.03 to $38.42 and raises the loss benefit level from $550,000.00 to $600,000.00.
• This contract provides medical, employee assistance program and Managed Behavioral Health benefits to County employees, and dependents for the 2023 calendar year.
• Stop Loss annual premiums are impacted by the market and the County’s specific experience.
• The Rider does not increase the original approved contract amount.
• This contract was approved by the Board of County Commissioners on October 12, 2021, in the amount of $252,794,000.00 for sixty months and contained two options for twelve-month renewals.
• Approval of the Rider has no fiscal impact on the County or to the overall approved contract amount.
• The fiscal impact on employees is projected to be about $93,410 in 2023 based on figures from March 2023 (3,257 employees on the plan). The premium is paid per employee per month, which can increase or decrease month-to-month.
Contract No. 21-0162-P(LN) for an annual amount of $50,558,800.00 over sixty (60) months with a total contract value of $252,794,000.00 effective January 1, 2022. The Rider does not increase the approved contract amount.
Body
Strategic Plan:
Create a Quality Workforce in a Positive, Supportive Organization
1.3 Make workforce safety and wellness a priority
1.4 Maintain a fair and competitive compensation package
Summary:
The purpose of this Rider is to acknowledge a name change and delete the prior Rider in its entirety and replace with the Rider effective January 1, 2023. It increases the individual excess risk premium from $36.03 to $38.42 per employee per month and raises the benefit level from $550,000.00 to $600,000.00.
Background/Explanation:
The Board awarded this contract on October 12, 2021, in the amount of $252,794,000.00 for sixty months with two options for twelve-month renewals. Approval of the Rider has no fiscal impact on the County or to the overall approved contract amount.
Fiscal Impact:
The Rider has no fiscal impact to the overall approved contract amount.
Original approved expenditure not to exceed: $252,794,000.00
The fiscal impact due to the increased premium is projected to be about $93,410 in 2023 based on figures from March 2023 (3,257 employees on the plan). The premium is paid per employee per month, which can increase or decrease month-to-month.
Funds are derived from the Employee Health Benefits Fund.
Delegated Authority:
Authority for the County Administrator to approve and execute this amendment is granted under Code Section 2-62 (a)(2).
Staff Member Responsible:
Merry Celeste, Division Director, Purchasing & Risk, Administrative Services
Joe Lauro, Director, Administrative Services
Partners:
N/A
Attachments:
2023 Premium Rider