Title
RFP No. 2024-124 - Annual Group Dental Insurance.
(Authorize the City Manager to finalize and execute a master application with CIGNA effective January 1, 2025. The term of the contract is for a one-year period, with four additional one-year renewal options. The City Manager is authorized to exercise the renewal options, subject to annual appropriation of sufficient funds.)
Body
The City of Mesquite issued a Request for Proposal for Group Dental Insurance effective January 1, 2025, due to current plan expiration. The City received four bids for dental insurance including one from the City's current carrier, CIGNA. All bids were reviewed by the City's benefits consultants, McGriff, Seibels & Williams, in which finalists were selected and best and final offers were solicited.
The City provides group dental insurance with a DHMO and DPPO and an Executive DPPO option to all active, full-time employees and retirees. The dental policy is fully insured with shared returns (participating policy with no deficit carry forward). The current policy includes a wellness incentive increasing the coinsurance for an enhanced benefit. Employees share a cost of the dental premiums while retirees pay the full premium.
CIGNA is the current dental insurance provider and provided the most competitive proposal overall with the lowest increase in rates matching the current plans and best dental network. CIGNA's best and final proposal results with no increase to the DHMO, DPPO and Executive DPPOD for the first two years and with an increase in rate not to exceed 5 percent guaranteed for year three and four.
Financial Implications
2025 - $990,031.00
2026 - $990,031.00
2027 - more than a five percent increase to $1,039,533
2028 - no more than a five percent increase to $1,091,509
Recommended/Desired Action
Staff recommends the City Manager be authorized to finalize and execute a master application with CIGNA.
Attachment(s)
Finalist Proposal Summaries
Drafter
Nick Domovich
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