Agenda

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County Administrator's Report 10. 29.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	09/06/2018
Issue: Dental Insurance
From:	Eric Kleinert
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Dental Insurance - Eric Kleinert, Human Resources Department Director

That the Board take the following action concerning dental insurance:

A. Approve awarding a Contract to Delta Dental Insurance Company for dental administration and claims, effective January 1, 2019, for a period of 24 months; and

B. Authorize USI to contact Delta Dental Insurance Company to adjust the administrative fee to reflect Delta Dental’s current offer.

[Funding Source: Fund 501, Internal Service Fund; Cost Center 150109, Object Code 53101 and 54501]

BACKGROUND:

USI solicited the market for the County and received eight proposals:

Guardian                                                                               Ameritas
Delta Dental Insurance Company                                         Met Life Insurance Company
The Standard                                                                        United Concordia Insurance Companies
Sun Life Financial                                                                  Lincoln National Life Insurance Company

The County has received a two-year guaranteed rate for dental administrative services from Delta Dental at $2.85 per employee per month. The present fees are reduced by $.35 monthly, for a cost savings of $9,593 per year, with a total savings of $19,186.

Claims costs will be determined by the number of employees and retirees that visit their dentists and includes what the discounted rate is and whether the dentist is in network. The number of dentists that are contracted with Delta Dental was one of the key factors in determining the County’s provider.

There are no new forms to be signed. Delta Dental will send an updated renewal letter with the new ASO fee.

The budget for Fiscal Year 2017-2018 was $85,000 for administrative fees and $870,000 for claims, for a total estimated cost of $955,000. Presently, the County is trending $88,178 for administrative fees and $876,522 for claims for a total of $964,700. Our employee numbers have increased with the addition of Mass Transit by approximately 120 employees. All eligible employees that do not elect the County’s group health insurance will receive a discount on their dental insurance of $12.98 per month, which is the Health Insurance Replacement plan (HIR).

BUDGETARY IMPACT:

Budget impact should be level depending on the number of claims and/or employees that are on the County’s dental plan each year.

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

The Human Resources Department will conduct open enrollment meetings and service all employee groups. All appointing authorities (payrolls) will be advised of any administrative changes to the program.

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

A Purchase Order will be the instrument utilized for making payment against the Contract. The Human Resources Department will coordinate with the County Attorney’s Office and other appointing authorities to ensure changes are made.

Attachments
No file(s) attached.