Title
Consider recommendation from EAA staff to approve the purchase of employee medical insurance from Cigna Healthcare through Risk Services-Leavitt Insurance Agencies, in the approximate amount of $1,609,729, for the period October 1, 2026, through September 30, 2027.
Body
STAFF RECOMMENDED MOTION:
Move the board adopt Resolution and Order No. 08-26-153 of the Edwards Aquifer Authority Board of Directors approving the purchase of employee medical insurance from Cigna Healthcare, through Risk Services-Leavitt Insurance Agencies, in the approximate amount of $1,609,729, and approve the purchase of Basic Life and AD&D from OCHS Inc. through Securian Financial in the approximate amount of $58,476, for October 1, 2026, through September 30, 2027, and authorize the General Manager to execute all necessary documents.
SUMMARY:
The purpose of this agenda item is for the board to consider an EAA staff recommendation to purchase employee medical insurance from Cigna Healthcare and Basic Life and AD&D from OCHS for the 2026 plan year that commences on October 1, 2026.
On May 25, the EAA issued Request for Proposal (RFP) for group medical, life, dental and long-term disability insurance coverage through direct notification and publication of the RFP with the Texas Purchasing Group-BidNet Direct and State of Texas Business Daily, the RFP reached two hundred and fifty-one vendors with notification of the RFP, fifty-three (53) were M/WBEs.
On Thursday, July 2, 2026, the EAA received eight (8) proposals from Baldwin Group, Benefit Source, Frost, Marsh, Insurepointe, Leavitt Group, MetLife and OCHS, of which one is an M/WBE.
The EAA received six responses for group medical insurance to this RFP of which one was through Risk Services-Leavitt Insurance Agencies for Cigna Healthcare. Subsequent to the deadline for RFP responses, the EAA received a renewal quote from Blue Cross Blue Shield of Texas, the EAA’s current medical insurance provider, for plan year 2026 rates that included an overall increase of 31.8% over current year rates. The rates provided by Cigna Healthcare were approximately 4% higher than 2025 rates and 22% lower than the Blue Cross Blue Shield renewal for the 2026 plan year.
Of the responses received for Basic Life and AD&D, the EAA received ten responses of which one was from OCHS. The response received from OCHS was most competitive in terms of rate and benefit. Of the other benefit and insurance lines, only the medical insurance line and Basic Life and AD&D exceeds the General Manager signature authority and requires board approval. Consequently, EAA staff is recommending Cigna Healthcare through Risk Services-Leavitt Insurance Group for group medical insurance and OCHS for Basic Life and AD&D through Securian Financial for the 2026 plan year.
The provisions of the federal Affordable Care Act require that employers maintain an open enrollment period for 30 consecutive days prior to plan year commencing. The EAA’s open enrollment for the 2026 plan year will begin August 18 and conclude September 11. The final weeks of September allow EAA staff to ensure all enrollment and payroll databases are accurate for the October 1 plan year commencement.
Attached is Resolution and Order No. 08-26-153, for the purchase of health insurance for the 2026 plan year which has been reviewed by legal counsel.
M/WBE PARTICIPATION:
Risk Services-Leavitt Insurance Agencies will serve as the EAA agent representing Cigna Healthcare. Cigna Healthcare is not an M/WBE vendor. Securian Financial will serve as the EAA agent representing OCHS for Basic Life and AD&D. OCHS is not an M/WBE vendor.
STRATEGIC PLAN REFERENCE:
This agenda item supports the general EAA mission.
FISCAL IMPACT:
Funding in the amount of $1,609,729 for employee medical insurance and $58,476 for employee Life and AD&D is available in the 2026 operating budget and will be included in the General Manager’s proposed 2027 operating budget.