HomeMy WebLinkAboutItem 4.02 Delta Dental RenewCITY CLERK
FILE # 0720-40
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 20, 2000
SUBJECT:
Delta Dental Rate Renewal and Amendment to the Benefit Plan
Report Prepared by: Julie Carter, Assistant to the City Manager
ATTACHMENTS:
1. Resolution Amending the Benefit Plan
RECOMMENDATION:
Authorize City Manager to execute a contract extension with
Delta Dental.
Adopt Resolution.
FINANCIAL STATEMENT:
Sufficient funds have been included in the City's Contingent
Reserve to cover cost for Fiscal Year 2000-2001. Future costs will
be included in the Fiscal Year 2001-2002 budget to cover the new
premiums.
DESCRIPTION:
The City has been a Delta Dental participant since in 1989. During the first four years of service, the City
was able to secure two-year contract terms with favorable premium rates. In 1997 the renewal date was
changed from October to January to get a better rate renewal and to coincide with the City's health
insurance program.
Earlier this month the City's Insurance Broker notified Staff that Delta Dental proposed a 15% increase to
renew a two-year contract; effective January 1, 2000. Since the Broker did not receive the renewal notice
until May 2000 there are no retroactive premiums collectible. On the City's behalf the insurance broker
solicited quotes from other dental insurance carriers and municipal dental pools across California to
determine the best plan at the most affordable price for the City.
in response to the effort by the Broker to market the coverage among other providers, Delta did agree to
respond with a proposal for fixed premiums over an 18-month period. Under the Delta proposal the City
would enroll employees in the DeltaPerferred Option (DPO) plan and current rates would increase by 8%.
The rate change would be effective from July 1, 2000 through December 31, 2001: This increase in
premium seems reasonable since the City has not received a rate increase in dental premiums since
October 1997. A comparison of the rate renewal is shown below:
· i: i'. ~.!Cb~rh~ G':~6.Op'.:~:: i'~::~ :i~Cu??~ni:.:.Rat~s:. ]' :]]~' :] Pr0~bs~id Rhtes': i. i
:.i~i :::i .;~:~ ~'ii~ :'i~r'iiii:::;iii~..qii.'::i:ii ::i:~:.~ i:~q:i'~:~:: ;:i~~:· :~:~.;. :::;~ : '.:i;::'i': ~i:.~ ' i i; ':. ~' ~' . .: :: :" : :' '':::' ' '
i i~:!i:'i.i i.;;:;;ii:,.:'~'~::':' ~/',.~ '"::':'~: ~,~::'~.'.'. ~..':::'.:. :."~.~i.'i~:',::::. '.7.:.' :.~:~:i~: ":::::~ :. :' ~::/::.:.. ~.~ :": ': ::.::.:.'.~: ~':"~ (7,'1~00),: :.:.:.:.:. ::' ·
One Party $44.69 $48.28
Two Party $85.85 $92.76
Three or More Party $144.04 $155.91
COPIES TO:
ITEM NO.
Based on the City's current participant group the Fiscal Year 2000-2001 cost is $5,628.00. Monies are
available in the City's Contingent Reserve to cover this additional cost. Staff was unable to incorporate
the new premium rates into the budget because of the late timing of the rate renewal.
The City would maintain the same level of benefits as currently provided in the contract and if the
employee went to a Dentist registered in the DPO Directory, additional deductible savings would be
obtained as described below:
Deductible Current Coverage Proposed DP()
In Director? Not In Director),
Per patient per calendar year $25 $15 $25
Per family per calendar year $75 $45 $75
Waived on Diagnostic & No No No
Preventive
Eligibility Waiting Period
Employees requested the waiting period 44 month of 30 days 30 days
change for newly hired employees during the Employment
FY 1999/2000 employee meeting process
The DeltaPerferred Dentist Directory maintains a listing of 28 DPO Dentist in the Tri-Valley ,area. Given
the favorable approval of this contract amendment, Staff will coordinate the enrollment into the new DPO
plan.
Recommendation
Given the offer by Delta Dental Insurance to stabilize insurance premium costs, without affecting benefits
or access to dentists, Staff recommends that the offer by Delta Dental be accepted. Provided that the City
Council concurs with this recommendation the City Manager will execute a contact extension with Delta
Dental as outlined above. It will also be necessary for the City Council to amend the Benefit Plan, to
increase the City's current contribution to the new premium rates. A proposed Resolution Amending the
Benefit Plan is attached (Attachment 1). Staff recommends that the City Council review the proposed
change and adopt the attached Resolution.
RESOLUTION NO. - O0
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. 101-91 and subsequent amendments to include the following:
Section 3. Dental Insurance: Beginning with the July 2000 premium, the City will contribute on behalf of
each employee scheduled to regularly work at least 30 hours per week, a maximum of $155.91 per month
to a dental insurance plan selected by the City. Beginning with the July 2000 premium, the City will
contribute on behalf of each regular employee scheduled to work between 20 and 29 hours per week, a
maximum of $48.28 per month to a dental insurance plan selected by the City.
PASSED, APPROVED AND ADOPTED this 20th day of June, 2000.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Mayor
City Clerk
K2/G/6-20-00/reso-deltadental.doc (Item 4.2)
ATTACHMENT 1