HomeMy WebLinkAbout16837 1 RESOLUTION NO. 16,837
2
3 A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO ENTER INTO
4 A CONTRACT WITH CIGNA HEALTHCARE FOR GROUP MEDICAL
5 ADMINISTRATION AND NETWORK SERVICES FOR THE CITY'S 2026
6 PARTIALLY SELF-FUNDED EMPLOYEE GROUP HEALTH PLAN; AND
7 FOR OTHER PURPOSES.
8 WHEREAS,the City of Little Rock ("City") offers group health insurance for City employees and
9 their dependents;and,
10 WHEREAS, due to rising insurance costs and the desire to improve employee health, the Human
11 Resources Benefits Division and the City's Employee Benefits Consultant, JTS Financial Services, LLC
12 ("JTS")began to explore alternative funding options with the goal of becoming partially self-funded;and,
13 WHEREAS, the Board of Directors of the City, decided in 2017 that JTS would have the ability to
14 conduct any competitive selection process for the City's insurance needs by adopting Little Rock, Ark.,
15 Ordinance No.21,442(July 5,2017); and,
16 WHEREAS,on May 20,2025, JTS presented to the Board of Directors a partially self-funded group
17 medical plan overview for the 2026 plan year,and,
18 WHEREAS, in August 2025,JTS issued a request for proposal for group medical administration and
19 network services for the City's 2026 partially self-funded employee group health plan;and,
20 WHEREAS,Cigna Healthcare was selected as the most qualified respondent to provide group medical
21 administration and network services for the City's 2026 partially self-funded employee group health plan
22 for an amount not to exceed Two Million Three Hundred Thousand Dollars($2,300,000.00);and,
23 WHEREAS, the contract term is for one year(2026), with an option to extend six (6) additional one
24 (1)year terms.
25 NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
26 OF LITTLE ROCK,ARKANSAS:
27 Section 1. The City Manager is authorized to enter into an agreement with Cigna Healthcare for the
28 initial period of January 1,2026 to December 31,2026,with an option to extend six(6)additional one(1)
29 year terms, in an amount not to exceed Two Million Three Hundred Thousand Dollars($2,300,000.00)to
30 provide group medical administration and network services for the City's 2026 partially self-funded
31 employee group health plan.
32 Section 2. This self-funded insurance program, unless ended sooner by action of the Board of
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1 Directors, shall be in effect from the effective date of this ordinance until December 31, 2028, subject to
2 the following provisions:
3 a. Any savings realized by participation in a self-funded insurance program shall be
4 maintained in the same account fund;
5 b. Historical data collected during the period of any self-insurance year shall be shared with
6 the Mayor and Member of the Board of Directors before the decision to maintain self-
7 insurance in place for a further year is made;
8 c. Nothing in this Resolution precludes a specific ordinance or resolution by the Board of
9 Directors to utilitize any cost savings in any year if required for an immediate municipal
10 need, and the decision to reallocate funds is the subject of a public hearing.
11 Section 3. Funds for the for group medical administration and network services for the City's 2026
12 partially self-funded employee group health plan shall be available from a line item for Group Health Care
13 Insurance in the 2026 Budget.
14 Section 4. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
15 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or
16 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and
17 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
18 ordinance.
19 Section 5.Repealer. All laws,ordinances, resolutions,or parts of the same that are inconsistent with
20 the provisions of this resolution are hereby repealed to the extent of such inconsistency.
21 ADOPTED: October 6,2025
22 ATTEST: APPROVED:
23
24 'i NAJ•
25 Allison Segars,City Frank Scott,Jr.,Mayor
26 APPRO ED AS TO LEGAL FORM:
27
28 ; .
29 Thomas M. Carpenter,City Attor y
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