SUBJECT/RECOMMENDATION:
Title
Approve an agreement with Evernorth Direct Health LLC dba Cigna for onsite medical and prescription drug services for the period of October 1, 2026, through September 30, 2029, in the not-to-exceed amount of $5,500,000.00 and authorize the appropriate officials to execute same.
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SUMMARY:
The City of Clearwater is currently comprised of approximately 1,690 Active benefit-eligible employees and 893 Retirees. The City of Clearwater offers a comprehensive group benefits program to its employees and their dependents. Persons covered by the City’s insurance plan have access to the Employee Health Center. The Employee Health Center allows employees to receive medical services such as primary care, urgent care, medication dispensing, and lab work at no cost to the employees or their dependents. The center is staffed by a doctor, nurse practitioner, and support staff and is open 50 hours per week. The original agreement was approved by Council on September 21, 2023, pursuant to RFP-No. 22-23 and this is the first of two 3-year renewal options.
Evernorth, our current provider, will maintain the current level of staffing and services for the City and a fee schedule below current for Years 1 and 2. In Year 3, the cost will be 1.55% more than the cost in Year 1.
Evernorth’s July 2026 performance report demonstrates a strong return on the City’s investment and high patient satisfaction. For the rolling 12- month period, the Employee Health Center generated a 2.0 return on investment and achieved 99% overall satisfaction. Year-to-date utilization included 2,929 visits and 976 unique patients. Rolling 12-month center adoption was 63%, and provider utilization was 69%.
The estimated amounts for the next three years are as follows:
Year 1 - $1,608,023 (2026-2027)
Year 2 - $1,696,123 (2027-2028)
Year 3 - $1,690,223 (2028-2029)
Since these figures are only cost estimates, additional funding is being requested.
APPROPRIATION CODE AND AMOUNT:
Funds for the first year of this agreement are available in the Employee Health Center cost center (5909835) which covers administrative and anticipated operating costs. Funding for future years will be included in the annual budget request.
The Employee Health Center is funded by the Central Insurance Fund, an internal service fund of the city established to account for all insurance related expenses.
STRATEGIC PRIORITY: Superior Public Service: Promote a Diverse and Talented Workforce Through Competitive Opportunity, Employee Wellness and Rewarding Growth
5.4 Enhance Employee health and productivity through a holistic approach to workplace wellness and benefit resources. The medical plan and the Employee Health Center are an integral part of enhancing employee health and productivity and is a benefit resource to attract and retain employees.
