Clearwater City Council Approves $34 Million Healthcare Contract with Cigna and Evernorth for 2027 Employee Benefits

The Clearwater City Council unanimously approved a significant healthcare contract yesterday, authorizing an amendment with Cigna Healthcare and a purchase order to Evernorth Behavior Health. This decision secures employee benefits for the period spanning January 1, 2027, through December 31, 2027, with a total not-to-exceed amount of $34.0 million.

This substantial investment ensures comprehensive medical insurance for city employees under a self-insured funding arrangement through Cigna Healthcare, which accounts for $33,897,264 of the total contract. Additionally, Evernorth Behavior Health will provide an employee assistance program, receiving $60,000 for its services. These contracts are crucial for maintaining the city's commitment to its workforce and their well-being, directly impacting the benefits package available to municipal staff and retirees.

The approval followed a motion made by Councilmember Teixeira, which was duly seconded and carried unanimously by the City Council. This decision was made pursuant to Request for Proposal (RFP) 26-22, indicating a formal and competitive process was undertaken to select the healthcare providers. The transparent process ensures accountability and adherence to established procurement guidelines for such a large expenditure.

Funding for these contracts will be drawn from multiple sources, including city budgeted funds, payroll deductions from employees, and premiums paid by retirees. This diversified funding approach helps distribute the financial responsibility across various stakeholders, ensuring the sustainability of the healthcare benefits for the upcoming year. The city's financial officials will now proceed with executing the necessary documents to finalize these agreements.