SPECIFIC STOP LOSS INSURANCE

The City of Tucson (“City”) is the second largest city in Arizona. The City provides police and fire services, parks and recreation, street maintenance, transportation, solid waste management, water and a broad range of administration, para-professional and professional municipal governmental activities and services. The City is seeking to obtain specific stop loss insurance for its 4,508 covered employees and retirees (mostly pre-Medicare) for a July 1, 2026 effective date. Effective July 1, 2026, the City will be moving to Blue Cross Blue Shield of Arizona (“AZ Blue”) for its medical TPA/network and PBM. Currently, the City has a self-funded plan through Cigna that was placed on July 1, 2019. Prior to this time, the City was under an insured contract with Cigna since 2007. Plan paid medical and prescription drug claims were approximately $43.5 million in the most recent 12 months (thru March 2026). Stop loss insurance will cover medical and prescription drug coverages. AZ Blue will provide medical TPA services, network administration, UR/UM, and PBM functions through OptumRx, their PBM partner.