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HomeMy WebLinkAbout16860 RESOLUTION NO. 16,860 2 3 A RESOLUTION TO AUTHORIZE THE 'CITY MANAGER TO ENTER 4 INTO A CONTRACT WITH CIGNA HEALTH AND LIFE INSURANCE 5 COMPANY, IN AN AMOUNT NOT TO EXCEED TWENTY MILLION 6 DOLLARS($20,000,000.00)TO PROVIDE EMPLOYEE GROUP HEALTH 7 INSURANCE FOR THE PERIOD BEGINNING JANUARY 1, 2026, 8 THROUGH DECEMBER 31, 2026; TO REPEAL LITTLE ROCK, ARK., 9 ORDINANCE NO. 16,836 (OCTOBER 6, 2025) AND ORDINANCE NO. 10 16,837 (OCTOBER 6, 2025) REGARDING THE ADMINISTRATION AND 11 REINSURANCE OF A PARTIALLY SELF-FUNDED EMPLOYEE GROUP 12 HEALTH PLAN; AND FOR OTHER PURPOSES. 13 I4 WHEREAS, the City of Little Rock ("City") offers group health insurance for City employees and 15 their dependents;and, 16 WHEREAS, the Board of Directors of the City, decided in 2017 that the City's Employee Benefits 17 Consultant, JTS Financial Services, LLC ("JTS") would have the ability to conduct any competitive 18 selection process for the City's insurance needs by adopting Little Rock,Ark.,Ordinance No.21,442(July 19 5,2017); and, 20 WHEREAS,a Request for Proposal was issued for group health insurance and Cigna Health and Life 21 Insurance Company ("Cigna") was selected as the most qualified, responsive, and responsible to provide 22 group health insurance for the period of January 1,2026,to December 31,2026;and, 23 WHEREAS, the cost is not to exceed Twenty Million Dollars ($ 20,000,000.00) including the Basic 24 Plan,with shared cost of the dependent coverage with the employee,and to offer employees two(2) Buy- 25 up Plans and a High-Deductible Plan for additional coverage for 2026. 26 WHEREAS, Resolution No. 15, 782 ( September 6, 2022) authorized the initial term of the contract 27 with Cigna Insurance for 2023, with the option to extend the contract for six (6) additional one (1) year 28 terms; and, 29 WHEREAS,the contract term for 2026 represents year four(4)of a potential seven(7)year term. 30 NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY 31 OF LITTLE ROCK,ARKANSAS: 32 Section 1. The City Manager is authorized to enter into an agreement with Cigna for the period of 33 January 1, 2026 to December 31, 2026, in an amount not to exceed Twenty Million Dollars ($ [Page 1 of 2] 1 20,000,000.00) for the Basic Plan, with shared cost of the dependent coverage with the employee, and to 2 have available for employees two(2)Buy-up Plans and a High-Deductible Plan for additional coverage for 3 2026.. 4 Section 2. Funds for this contract are included the 2026 budget line item for Group Health Insurance 5 accounting units# 100000,# 101003, # 600001 and accounts#21200,# 53200, #21270. 6 Section 3. Little Rock, Ark., Ordinance No. 16,836 (October 6, 2025) and Ordinance No. 16,837 7 (October 6, 2025) regarding the administration and reinsurance of a partially self-funded employee group 8 health plan are hereby repealed. 9 Section 4. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or 10 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or 11 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and 12 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the 13 ordinance. 14 Section 5.Repealer. All laws, ordinances, resolutions, or parts of the same that are inconsistent with 15 the provisions of this resolution are hereby repealed to the extent of such inconsistency. 16 ADOPTED: November 4,2025 17 ATTEST: APPROVED: 18 19 AQW l l i�✓ L���� 20 Allison Segars,Ci erk Frank Scott,Jr.,Mayor 21 APPROVED AS TO LEGAL FORM: 22 23 11,4014. 24 Thomas M. Carpenter,City rney 25 // 26 // 27 // 28 // 29 // 30 // 31 // 32 // 33 // 34 // 35 // [Page 2 of 21