Frederick city employees will pay nearly 5% less in health insurance rates after the city reached a new agreement with Cigna.

The city's aldermen voted 4-0 to approve the agreement at their meeting Thursday evening, with Alderman Ben MacShane absent.

The city received responses to a solicitation for group medical and prescription drug coverage from Cigna, CareFirst, and Aetna.

Cigna, which is the city's current provider, received the highest score of the three options through the city's review process, Director of Human Resources Karen Paulson told the mayor and aldermen.

Although Cigna initially offered no change to its fiscal 2022 rates, the rate was successfully negotiated to provide a 4.8% decrease from the current rate, according to a report prepared by city staff.

The lower rate, plus the ability to avoid disruptions to service by using the current provider, made Cigna the clear choice, Paulson said.

The 1-year agreement provides options to renew it with the city's approval for four more 1-year terms.

Follow Ryan Marshall on Twitter: @RMarshallFNP

Ryan Marshall is the transportation and growth and development reporter for the News-Post. He can be reached at rmarshall@newspost.com.

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