HomeMy WebLinkAbout4.12 Delta Dental Renewal CITY CLERK
File # 720-40
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 1, 2003
SUBJECT: Delta Dental Contract Renewal and Amendment
Report Prepared by: Julie Carter, Assistant to the City Manager
ATTACHMENTS: None
RECOMMENDATION: Authorize City Manager to execute a contract amendment with Delta
E~ Dental.
FINANCIAL STAT NT: There is an average of 12.10% increase in the premiums scheduled
for Fiscal Year 2003-2004 through Fiscal Year 2004-2005 which
represents a two-year rate guarantee. Delta Dental proposed a 5.68%
increase; the balance of the increase is the cost to enhance the Delta
Dental contract as described in this report. Sufficient funds have
been included in the City's proposed Fiscal Year 2003-2004 budget
to cover premium costs.
DESCRIPTION: The City has maintained Delta Dental insurance since 1989. On July
1, 2002, the City joined ABD Insurance Services Municipality Pool and continued dental coverage
through Delta Dental/DPO. The ABD Municipality Pool provides cities an opportunity to be part of a
20,000 participant group, which allows added purchasing power when negotiating contract renewals.
Current City Benefit: Delta Dental provides a maximum of $2,000 coverage for each enrollee per calendar
year and the City's contract provides for the follow payment for services as follows:
Preventive 100 %
Basic 80%
Crowns 50 %
Prosthodontics 50%
Payment for orthodontic benefits is limited to a lifetime maximum of $1,500 for dependent
children.
Delta Dental's current contract proposes that effective July 1, 2003 the monthly premiums will increase
5.68% to be: Single - $40.52; Two Party - $77.84; Three Party+ - $130.83. Based on current employee
census this represents an annual increase of $4,710.
COPIES TO: Dulcey Lester, ABD Insuranc~ ~S~rv~esam
ITEM NO.
Proposed Benefit Enhancement: Dublin City Employees presented a Benefit Enhancement Proposal for
Fiscal Year 2003-2004. One of the proposals was to enhance the City's existing Delta Dental coverage
from a maximum of $2,000 to $2,500 per enrollee per year and increase the coverage percentages as
follo~vs:
Preventive Benefit unchanged
Basic 90%
Crowns 60%
Prosthodontics 60%,
Orthodontics Benefit unchanged
The monthly premiums for the Delta Dental with the added benefit enhancements are as follows:
: Curren~ ~op~s~ ~n~ge
One P~y $38.34 13.09%
Two Pa~y $73.66 12.49%
T~ee or More $123.80 10.73%
P a~y
Based on the proposed Delta Dental rate renewal of 5.68% and on a c~ent employee census, adding the
City employee benefit e~ancement represents an annual cost increase of $3,813.
Recommendation
Staff recommends the City Council authorize the City Manager to execute a contract amendment with
Delta Dental.