Memorandum

City of Lawrence

Human Resources Division/City Manager’s Office

TO:	David L. Corliss, City Manager Diane Stoddard, Assistant City Manager
FROM:	Lori Carnahan, Human Resources Manager
CC:	Michelle Spreer, Benefits Specialist
DATE:	September 8, 2011
RE:	Health Reimbursement Account Rider for Cigna Administrative Services Only (ASO) Agreement

As discussed during the 2012 Budget process, the Human Resources Division along with Hays Companies and the Healthcare Committee recommend implementation of a Health Reimbursement Account.  Human Resources staff along with Hays Companies has reviewed a DRAFT Rider to be added as an addendum to the City’s Administrative Service Only (ASO) Agreement with Cigna.  Cigna has not had a final version released from their contracts department and will not likely have it until sometime in October.  In order to proceed with implementation for January 1, the Human Resources Division requests approval by the City Commission for the City Manager to execute the final agreement when it is ready.

The attached Healthcare Plan budget memo dated June 28, 2011 details the other 2012 changes to the healthcare plan.

Requested Action.  Authorize the City Manager to proceed with implementation of a Health Reimbursement Account and to execute the final Administrative Services Only Agreement Rider with Cigna.