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County Administrator's Report 16. 12.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	07/25/2013
Issue: Recommendation Concerning Dental Insurance (PD 12-13.029)
From:	Thomas Turner
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Dental Insurance - Thomas G. "Tom" Turner, Human Resources Department Director

That the Board take the following action concerning Dental Insurance (PD 12-13.029):

A. Award a Contract to Delta Dental Insurance Company for dental administration and claims, PD 12-13.029, to provide the following:

1. An annual funding amount of $60,000 for administrative services and $600,000 for claims per Fiscal Year, for all current eligible employees and retirees, effective October 1, 2013, for a period of 36 months; and

2. All eligible employees and retirees electing dental coverage will be required to pay the present established premiums, noted on the provided schedule; and

B. Authorize the Interim County Administrator to sign the Dental Administration Service Contract between Delta Dental Insurance Company and Escambia County (Service Contract will be drafted upon approval of this Board action).

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

BACKGROUND:

The Office of Purchasing solicited a Request for Proposal. On May 23, 2013, six proposals were received from the following:

Aetna Life Insurance Company

Assurant

Delta Dental Insurance Company

Florida Combined Life

Humana Dental Insurance Company

United Concordia Insurance Companies

The County has received a three year guaranteed rate for dental administrative services from Delta Dental at $3.20 per employee per month. This is a reduction of $.19 per employee on our present administrative cost or $3,374.40 savings per year ($10,123.20 for 3 years). Claims costs will be determined by the number of employees/retirees that visit their dentist, whether the dentist is in network and what the discounted rate is. The estimated total cost for dental insurance will be $60,000 for administrative fees and $600,000 for claims based on current enrollment. All eligible employees that do not elect the County’s group health insurance will receive a discount on their dental insurance of $12.98 if they elect dental coverage, which is the Health Insurance Replacement plan (HIR).

BUDGETARY IMPACT:

It will reduce the County’s administrative fees for the next three years in the amount of $3,374 per year or approximately $10,000 for three years.

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

The Human Resources Department will conduct open enrollment meetings and service all employee groups. We will advise all appointing authorities (payrolls) of any administrative changes in 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
Dental Ins Premiums for Active Employees and Retirees 062813