Interoffice Memorandum
DATE: November 19, 2025
TO: Mayor Jerry L. Demings and County Commissioners
FROM: Carrie Mathes, FNIGP, CFCM, NIGP-CPP, CPPO, C.P.M., Manager II, Procurement Division
CONTACT: Michelle Phyars, Section Manager, Human Resources Division
PHONE: 407-836-5833
SUBJECT: Approval of Amendment No. 7 and Amendment No. 8, Contract Y20-1026, Medicare Advantage with Prescription Drug Plan, Medicare Supplement Plans and Medicare Part D Employer Group Waiver Plans
ACTION REQUESTED:
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Approval of Amendment No. 7 and Amendment No. 8, Contract Y20-1026, Medicare Advantage with Prescription Drug Plan, Medicare Supplement Plans, and Medicare Part D Employer Group Waiver Plans, with Cigna Health and Life Insurance. ([Administration and Fiscal Services Department Human Resources Division] Procurement Division)
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PROCUREMENT:
Cigna Health and Life Insurance sold all of its Medicare prescription drug plan services to Health Care Service Corporation (HCSC). Amendment No. 7 formalizes Cigna’s Medicare Prescription Drug Plan Contract with the Centers for Medicare & Medicaid Services (S5617) to Medco Containment Life Insurance Company, a subsidiary of HCSC. Cigna Heath and Life Insurance Company will retain all Medicare supplemental medical services.
Further, Amendment No. 7 establishes two contracts, Y20-1026A and Y20-1026B. The amendment affirms Cigna Health and Life Insurance Company retains all rights, duties, and obligations related to Medicare Supplemental Medical Plans and will continue to provide services under Y20-1026A. All rights, duties, and obligations related to Medicare Prescription Drug Plans are reassigned to Medco Containment Life Insurance Company under Y20-1026B.
Amendment No. 8 to Contract Y20-1026A will extend the performance for the period of January 1, 2026 through December 31, 2026, and exhibits updated rates and premiums for the 2026 coverage period.
Amendment No. 8 to Contract Y20-1026B will extend the performance for the period of January 1, 2026 through December 31, 2026, and exhibits updated rates and premiums for the 2026 coverage period.
These extensions are necessary to allow sufficient time for the re-solicitation of all services. A Request for Proposals to solicit a new contract was planned for 2025 but could not be completed before open enrollment for retirees due to limited capacity for new projects in the Human Resources Division. The Procurement Division projects to issue a Request for Proposals in early 2026.
FUNDING:
All services provided are funded entirely by participants through monthly premium payments.
APPROVALS:
The Human Resources Division concurs with this request.
REMARKS:
On August 28, 2020, the Board authorized the award of Invitation for Bids Y20-1026 for a three-year term, with further authorization for the Procurement Division to renew the contract for two additional one-year terms. This contract provides Group Medicare Supplemental and Medicare Advantage with Prescription Drug and Medicare Part D Employer Group Waiver Plans benefits to retirees on a fully insured basis for Orange County Government and participating agencies.
Previous contract amendments are as follows:
Amendment No. 1, effective January 1, 2021: Defined term of agreement as effective January 1, 2021, through December 31, 2021, replaced Exhibit A, 2020 Medicare Part D Prescription Drug Plan with 2021 Medicare Part D Prescription Drug Plan, and replaced Exhibit B, Group Administrative Guidelines with updated guidelines. This amendment was effective in tandem with the execution of the agreement. This amendment was processed under the authority of the Procurement Division and did not require Board approval.
Amendment No. 2, effective January 1, 2022: Corrected term length from previous amendment, revising the term end date to December 31, 2023.
Amendment No. 3, effective January 1, 2024: Renewed the agreement relevant to the Group Medicare Advantage Prescription Drug (MAPD) Agreement for the period of January 1, 2024, through December 31, 2024, revised Section 24: Force Majeure, replaced Exhibit A, 2023 Medicare Advantage Prescription Drug Plan with 2024 Medicare Advantage Prescription Drug Plan, and replaced Exhibit B, Cigna Healthcare MAPD Group Administrative Guidelines with updated guidelines. This amendment was processed under the authority of the Procurement Division and did not require Board approval.
Amendment No. 4, effective January 1, 2024: Identified Medco Containment Life Insurance Company as an affiliate contracted to offer Medicare Part D Prescription Drug Plans and Group Prescription Drug Plans, to be collectively referred with Cigna as “Cigna Healthcare. Further, this amendment renewed the agreement relevant to the Group Prescription Drug Agreement for the period of January 1, 2024, through December 31, 2024, revised Section 24: Force Majeure, replaced Exhibit A, 2023 Medicare Part D Prescription Drug Plan with 2024 Medicare Part D Prescription Drug Plan, and replaced Exhibit B, Group Administrative Guidelines with updated guidelines. This amendment was processed under the authority of the Procurement Division and did not require Board approval.
Amendment No. 5, effective January 1, 2025: Renewed for the period of January 1, 2025 through December 31, 2025 and added Anti-Human Trafficking provision. This amendment was processed under the authority of the Procurement Division and did not require Board approval.
Amendment No. 6: Issued to renumber previous amendments to correct scrivener’s error. No changes to terms and conditions. All amendments renumbered to follow the order in which the amendments were executed. This amendment was processed under the authority of the Procurement Division and did not require Board approval.