Danielle Durgin, the city’s director of human resources, told the staff workshop on Oct. 20 that the city recommends renewing its administrative services contract with Cigna and changing how employees who waive city coverage are compensated.

Durgin said the city will move the current reimbursement model for employees who opt out of the city’s health insurance to a flat $400 monthly stipend beginning in plan year 2026. Employees who take the stipend will have to complete an annual opt‑out affidavit and provide proof of alternative coverage, she said. The stipend was estimated on 40 current opt‑outs and the anticipated cost was shown in the presentation as about $192,000.

The change follows a benefit survey conducted earlier in 2025 that showed most comparable cities provide a stipend model rather than a reimbursement arrangement, Durgin said. “Beginning in plan year 2026, the city will modify its medical reimbursement program for employees who waive city health insurance coverage from a reimbursement based model to a flat $400 monthly stipend,” she said.

Why it matters: staff said the stipend is intended to simplify administration and align Tamarac with practices in peer cities. Commissioners and the manager discussed whether the change represents net savings; staff said it is expected to reduce the city’s claims exposure but that a precise actuarial savings will depend on the ages and dependent status of those who opt out.

Other contract terms presented: staff recommended renewing Cigna for administrative services with a two‑year guarantee on administrative fees through December 2026 and a 3% cap in year three. Group life, long‑term disability and voluntary worksite benefit rates were presented as unchanged through December 2026; vision, EAP and FSA administration carry guarantees through December 2027. Durgin said Cigna is providing an additional $10,000 in wellness funding for plan year 2026, and the presentation listed total wellness funding as $85,000.

Stop‑loss and dental: staff reported an 11% overall increase in stop‑loss reinsurance, with the current stop‑loss premium shown as $772,000 and a negotiated premium for plan year 2026 shown as $861,000. Dental rates were shown increasing by a blended 5.3% with a two‑year guarantee, an estimated $7,000 annual cost to the city and a $2–$3 biweekly increase for employees.

No material changes to plan design were recommended; Durgin said the two existing medical plan offerings (an open access HMO and a high‑deductible plan with an HRA) would remain and employee cost shares for 2026 were presented as unchanged.

The commission will see the item on the formal meeting agenda on Wednesday for action.