Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute Contracts with Cigna Health and Life Insurance of Hartford, CT to provide Medical/Third Party Administrator (TPA) and Dental Benefits, CaremarkPCS Health, L.L.C. of Woonsocket, RI to provide Pharmacy Benefits Management (PBM), Community Eye Care, LLC of Charlotte, NC to provide Vision Benefits and Neely EAP, PLLC of Helotes, TX to provide Employee Assistance Program (EAP)
Summary
COUNCIL GOAL: Operational Excellence
(2.1: Balance available resources to accommodate the growth and maintenance needs of the city.)
Financially Sound Government
(4.4: Create financial plans for future growth as well as future maintenance.)
MEETING DATE: September 2, 2025
DEPARTMENT: Human Resources
Procurement Services
CONTACT: Jim Parrish, Director of Human Resources
Olivia Nahas, Human Resources Manager
Sean Fu, Buyer II
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution
ITEM SUMMARY:
• This Resolution authorizes the City Manager to enter into contracts with Cigna Health and Life Insurance of Hartford, CT to provide Medical/Third Party Administrator (TPA) and Dental Benefits, CaremarkPCS Health, L.L.C. of Woonsocket, RI to provide Pharmacy Benefits Management (PBM), Community Eye Care, LLC of Charlotte, NC to provide Vision Benefits and Neely EAP, PLLC of Helotes, TX to provide Employee Assistance Program (EAP).
BACKGROUND INFORMATION:
• The City issued a Request for Proposals, 25-34RFP for Medical/TPA, PBM, Dental, Vision and EAP on March 28, 2025.
o Advertised in McKinney Courier Gazette
o Posted on McKinney TV
o 5300 matching Bonfire Supplier Notifications, including six (6) Historically Underutilized Business (HUB) suppliers
• Of the 5300 supplier notifications, twenty-four (24) proposals were received on April 24, 2025.
• An evaluation committee comprised of staff from Human Resources, Police, Fire, MEDC and Finance along with HUB International, who is our employee benefits consultant, reviewed and scored the proposals based on the following criteria:
o 30 Points - Cost
o 20 Points - Cost Containment/Innovative Solutions
o 20 Points - Population Health Management Programs
o 10 Points - Claims Processing
o 10 Points - Integrated Systems/Technology Initiative
o 5 Points - Past Performance
o 5 Points - Communications
o 25 Points - Interview
• Based on the results of the evaluated proposals, the evaluation committee is recommending award and execution of contracts with the top-ranked respondents:
o Cigna Health and Life Insurance to provide Medical/Third Party Administrator (TPA) and Dental
o CaremarkPCS Health, L.L.C. to provide Pharmacy Benefits Management (PBM)
o Community Eye Care, LLC to provide Vision
o Neely EAP, PLLC to provide Employee Assistance Program (EAP).
• The resulting negotiated contract shall commence on January 1, 2026, and continue for a period of three (3) years with an option for two (2) one-year renewals.
FINANCIAL SUMMARY:
• Funding is available in account 015-2110-413-8574 for Dental.
• Funding is available in account 015-2110-413-8575 for fixed administrative fees (including Medical/Rx/Dental TPA fees and EAP).
• Funding is available in account 015-2110-413-8576 for Medical Claims.
• Funding is available in account 015-2110-413-8577 Prescription Claims.
• Funding is 100% employee funded for Vision.
BOARD OR COMMISSION RECOMMENDATION:
• N/A