Subject:
Title
Ranking of firms and agreement with Cigna Health and Life Insurance for requirements of dental benefit administration services.
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Recommended Action:
Recommended Action
Approval of the ranking of firms and agreement with Cigna Health and Life Insurance (Cigna) for requirements of dental benefit administration services.
• This agreement provides County employees, dependents, and retirees with dental benefits.
• Two firms submitted proposals; Cigna was selected as the highest ranked firm and is recommended for award by the Human Resources Department.
• The agreement has a term of sixty months with a service start date of January 1, 2022 with total expenditure of $12,155,000.00.
• This contract replaces a current contract that is expiring on December 31, 2021 held by Cigna.
Contract No. 21-0179-P(LN) in the annual amount of $2,431,000.00 for a sixty-month contract value of $12,155,000.00. Authorize the Chairman to sign and the Clerk of the Circuit Court to attest.
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Strategic Plan:
Create a Quality Workforce in a Positive, Supportive Organization
1.4 Maintain a fair and competitive compensation package.
Summary:
Summary
This contract continues to provide dental benefits to County employees, dependents, and retirees. Consistent with the current program, employees have the option of a self-funded preferred provider organization (PPO) plan and a fully insured dental health maintenance organization (DHMO) plan.
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Background Information:
A two-step RFP was released on January 22, 2021, requiring qualification submittals in step-one. Two (2) responsive submittals were received in Step-two with Cigna selected as the highest ranked firm. Negotiations yielded lowering the administrative fee and shared savings rates and increasing performance guarantees and enrollment caveat resulting in $73,000.00 total savings over five (5) years. The firms in order of ranking are attached on the ranking spreadsheet.
Fiscal Impact:
Total annual estimated expenditure not to exceed: $ 2,431,000.00
Estimated 60 Month Claims expenditure not to exceed: $11,155,000.00
Estimated 60 Month Administrative Fee expenditure not to exceed: $417,000.00
Estimated 60 Month Fully insured Premium: $535,000.00
Total estimated expenditure not to exceed: 12,155,000.00
Funding for this Agreement is derived from the Employee Health Benefits Fund and is consistent with the FY22 Adopted Budget
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Staff Member Responsible:
Kimberly Crum, Director, Human Resources Department
Merry Celeste, Division Director, Purchasing and Risk Management, Administrative Services
Joe Lauro, Director, Administrative Services
Partners:
N/A
Attachments:
Services Agreement
Ranking Spreadsheet