HomeMy WebLinkAboutItem 4.14 DeltaDentalRenewalCITY CLERK FILE # 720-40
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 19, 2001
SUBJECT:
Delta Dental Rate Renewal and Amendment to the Benefit Plan
Report Prepared by: dulie Carter, Assistant to the City Manager
ATTACHMENTS:
1. Municipal client list from ABD Insurance & Financial Services
2. Resolution Amending the Benefit Plan
RECOMMENDATION~
1. Authorize City Manager to transmit a letter to ABD Insurance &
Financial Services requesting membership in Municipality
Pool/Delta Dental Program.
2. Adopt Resolution.
FINANCIAL STATEMENT:
The City's Delta Dental rate renewal is scheduled for December 31,
2001. As part of the renewal of several other City health and
welfare benefits, City Staff requested a quote from ABD for
membership in their municipality pool under the Delta Preferred
DPO Option. Transfer to the ABD Municipality Pool from a direct
contract will save approximately 20.59% on employer paid
premiums. The Fiscal Year 2001-2002 budget includes funds to
cover the dental premiums.
DESCRIPTION:
The City has contracted directly with Delta Dental since 1989. During the Year 2000 rate renewal, Delta
'agreed to an 18-month contract (July 1, 2000 to December 31, 2000) and an 8% increase in plan
premiums.
In preparing for several City-paid health and welfare benefit renewals (Life, LTD and STD), the City's
Personnel Officer requested ABD Insurance Services to provide the City with a quote for conversion of
the City's Delta Dental Direct Contract to the ABD Municipality Pool contract. The ABD Municipality
Pool provides cities with added purchasing power when negotiating contract renewals. As part of the
Pool, Dublin will no longer be a single city negotiating for cost-effective benefit coverage; Dublin will
become part of a 20,000 participant group pool.
Through ABD Municipality Pool, Delta Dental will accept the City's existing contract in its entirety and
discount the premium rates based on the larger purchasing power of the pool.
COPIES TO:
Debbie MangeIs, ABD Insurance
Cheryl Connor, Insurance '
ITEM NO. ~
The Municipality Pool rates would be effective from July 1, 2001 through June 30, 2002 and renew each
Fiscal Year. The City's dental insurance premiums would be reduced as shown below:
~overhge:.GroUp:' .. "" C;u'rrent, Rat6s. :., .':' Pri~posed:Rate~ ::, .'ii'
i. :=.===.=..=.===.==.....=,... ..= ........I) .==.=.
One Party $48.28 $3'8.'34
Two Party $92.76 $73.66
Three or More Party $155.91 $123.80
Based upon the City' s employee profile as of April 2001 the savings would be approximately $17,604 per
year or 20.59%.
The City would maintain the same level of benefits as currently provided in the direct contract option.
The change to the Municipality Pool is invisible to enrollees:
:' ~D~ductible:::': .! .'
i.:: .::': .::i$..
Per patient per calendar year
Per family per calendar year
Waived on Diagnostic &
Preventive
".. ;'Co;!n~ui~an:Ce'' ::::!: .': ".: i::: :""
Preventive
Basic
Major
Calendar Year Maximum
Orthodontia
Lifetime Orthodontia
=.: . = Current:DpO= ...=
=: ==. =.: .: C'o'~rag~: '...=."
$50
3x's
No
100%
80%
50%
$2,000
50% (children under
19 years of age
$1,500
,: =" .: ·;=·PropOsed· DPO...= ::. =.'
~BD.=Municipid.
$50
3x's
No
100%
80%
50%
$2,000
50% (children under 19
years of age
$1,500
Recommendation
Staff recommends the City Council authorize City Manager to transmit a letter to ABD Insurance
Financial & Services requesting membership in their Municipality Pool under the Delta Dental Program
(effective 7-1-01) and adopt the Resolution amending the City's Benefit Plan.
EMPLOYEE BENEFITS CONSULTING
GOVERNMENT & MUNICIPAL REFERENCE LIST
Agoura Hills, City of
Alameda County, Housing Authority of
Alhambra, City of
Arcadia, City of
Arcata, City of
Arroyo Grande, City of
Artesia, City of
Baldwin Park, City of
Bell Gardens, City of
Bell, City of
Belmont, City of
Bradbury, City of
Buena Park, City of
California School Employers Association
Camarillo, City of
Central Marin Sanitation Agency
Chino Hills, City of
Chino, City of
Citrus Heights, City of
CJPIA Admin. Office
Colton, City of
Commerce, City of
Cudahy, City of
Culver City, City of
:-'~Daly City, City of
Dana Point, City of
Davis Joint Unified School District
Diamond Bar, City of
Dixon Unified School District
Downey, City of
~r. East Bay Regional Parks District
E1Segundo, City of
--)tFairfield, City of
Fontaria, City of
Fullerton, City of
Gait Volunteers, City of
Garden Grove, City of
Glendora, City of
Grand Terrace, City of
Hawaiian Gardens, City of
Hawthorne, City of
· tr, Healdsburg, City of
Hermosa Beach, City of
Hidden Hills, City of
Indian Wells, City of
Indio, City of
Industry, City of
Inglewood, City of
La Canada Flintridge, City of
La Habra Heights, City of
La Mixada, City of
La Qunita, City of
Laguna Niguel, City of
Lakewood, City of
Lawndale, City of
~t~Livermore, City of
Loma Linda, City of
Lomita, City of
~ Los Altos, City of
Los Rios Community College
District
Lynwood, City of
Malibu, City of
Manhattan Beach, City of
~>/~Menlo Park, City of
Mission Viejo, City of
)~eModesto, City of
Monrovia, City of
Montebello, City of
Monterey Park, City of
Nevada County
Norwalk, City of
Palm Desert, City of
Palm Springs, City of
Pico Rivera, City of
Plumas Unified School District
Rancho Palos Vetdes, City of
Redondo Beach, City of
Rolling Hills Estates, City of
~: Sacramento County
Sacramento County Office of Education
q~,Sacramento, City of
%~San Bruno, City of
4/5:San Carlos, City of
San Dimas, City of
San Fernando, City of
San Gabriel, City of
#San Luis Obispo, City of
San Ramon Valley Unified School District
Santa Clarita, City of
Santa Fe Springs, City of
~-Santa Rosa, City of
)~Sebastapol, City of
Shasta County
Shasta County Office of Education
Simi Valley, City of
Siskiyou JPA
South Gate, City of
South Bayside System Authority
South County FireProtection Agency
~ South San Francisco, City of
~ St. Helena, City of
q-Stockton, City of
Tehama County
Temecula, City of
Temple City, City of
Thousand Oaks, City of
Torrance, City of
Tuolurrme County
Tuolunme County JPA
Upland, City of
Washington Unified School
West Coma, City of
Westlake Village, City of
Woodland Joint Unified School District
7~ Yuba City, City of
Clients currently serviced out of the Belmont Employee Benefits office are highlighted in blue.
9/, / z/
ATTACHMENT 1
RESOLUTION NO. - O1
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AMENDING THE BENEFIT PLAN
WHEREAS, the Personnel System Rules require the City Council to adopt a Benefit Plan; and
WHEREAS, the Benefit Plan prescribes the current benefits provided to employees by the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby
amends Resolution No. 109-91 and subsequent amendments to include the following:
Section 3. Dental Insurance: Beginning with the July 2001 premium, the City will contribute on behalf Of
each employee scheduled to regularly work at least 30 hours per week, a maximum of $123.80 per month
to a dental 'insurance plan selected by the City. Beginning with the July 2001 premium, the City will
contribute on behalf of each regular employee scheduled to work between 20 and 29 hours per week, a
maximum of $38.34 per month to a dental insurance plan selected by the City.
PASSED, APPROVED AND ADOPTED this 19m day of June, 2001.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Mayor
City Clerk
K2/G/6 - 19 -01/reso-dental. doc (Item 4.14)
ATTACHMENT 2