HUD-5369-B.pdf

This is a specific stop loss insurance solicitation document from the City of Tucson, Arizona for its municipal employee and retiree health benefits program. The City is seeking specific stop loss insurance coverage for approximately 4,508 covered employees and retirees, with an effective date of July 1, 2026. The stop loss insurance will cover both medical and prescription drug claims under the City's self-funded plan. The City is transitioning from its current self-funded arrangement with Cigna (in place since July 1, 2019) to Blue Cross Blue Shield of Arizona as its medical TPA and network provider, with OptumRx serving as the pharmacy benefit manager.

Plan paid medical and prescription drug claims totaled approximately $43.5 million over the most recent 12-month period through March 2026. The stop loss insurance will provide coverage for these medical and prescription drug expenses under the new arrangement with AZ Blue, which will handle medical TPA services, network administration, utilization review and management, and PBM functions. Prospective bidders should note that the City has maintained continuous health coverage through major carriers, including an insured contract with Cigna from 2007 through 2019 prior to moving to its current self-funded structure.