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In an effort to get a better deal for employee health insurance, the City of Hollywood is leaving Florida Blue and going with Cigna.

During a recent meeting, the Hollywood Commission authorized a one-year agreement between the City and Cigna for stop-loss insurance not to exceed an amount of 110% of $884,682. The Commission also authorized an agreement between Cigna and the City for medical and prescription drug administration, dental administration and other health costs; that amount is not to exceed $919,930 annually.

The change aims to address recent major increases in employee health costs. Claims costs per employee per month increased 13.2% from 2014 to 2015. From 2015 through August 31, 2016, they increased 16.9%.

City administrators have studied various health insurance products and are looking for ways to save money. Many things contribute to the rising costs of healthcare, including an aging workforce, hospital groups purchasing independent providers, physician group and hospital mergers as well as other changes in the healthcare industry. Benefit selection for City of Hollywood personnel begins November 9 and ends November 23.

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David Volz
David Volz has been a reporter for Hollywood Gazette since 2011 and has worked for numerous community news publications throughout South Florida over the past two decades including the South Florida Sun-Sentinel, Miami Herald and South Florida Business Journal. He is a Professor in the Business department at Broward College and the editor of the Coral Springs Connection, an online community news website. He covers city government, schools, sports events, cultural activities, faith groups and workplaces.

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