In a recent city council meeting, members approved a resolution aimed at enhancing employee insurance coverage while achieving significant cost savings. The council unanimously passed Resolution 24 R 87, which sets the stage for a new insurance agreement for the 2025 plan year.

City officials presented a comprehensive proposal to transition from existing providers to new vendors, citing unsustainable premium increases from current carriers Blue Cross Blue Shield and Unum. After issuing a Request for Proposals (RFP) in April, the city received 55 submissions and narrowed the options to the most competitive vendors.

Key changes include switching medical coverage from Blue Cross to Cigna Healthcare, which is expected to save approximately $681,462 annually while maintaining the same plan coverage. Cigna also provided a rate guarantee for 2026, capping increases at 9.5%.

For dental coverage, Delta Dental will replace Unum, offering enhanced benefits and an annual savings of 9%, equating to about $26,000. Community Eye Care will take over vision services, providing a 20% savings of nearly $10,000 annually, along with a five-year rate lock.

The Hartford will provide disability and life insurance, yielding around $37,000 in savings, while Symmetra will cover ancillary lines such as accident and critical illness, with lower rates for employees. Lastly, the employee assistance program will transition to Dear Oaks, ensuring continued comprehensive support for city employees.

Overall, the city anticipates an annual savings of approximately $750,000 through these strategic changes, reflecting a commitment to both fiscal responsibility and employee welfare.