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HomeMy WebLinkAboutSR - C27650 - Employee Dental BenefitsJCF CITY OF PALM DESERT HUMAN RESOURCES DEPARTMENT STAFF REPORT REQUEST: Request for approval of Contract No. C27650 with Delta Dental through June 30, 2009. SUBMITTED BY: Lori Carney, Human Resources Manager CASE NOS. N/A DATE: May 8, 2008 CONTENTS: Staff Report Contract C27650 Delta Dental Recommendation: By Minute Motion authorize Mayor to approve Contract No. C27650 with Delta Dental through June 30, 2009. Executive Summary: A yes vote will approve an additional Delta Dental contract for HMO style employee dental benefits through June 30, 2009. Discussion: The City receives broker services from A.B.D. for dental, vision, life and long/short term disability insurance. A.B.D. negotiates rates and contracts on our behalf as part of a municipal pool. The City approved Contract No. C26820 with Delta Dental to provide employee dental benefits July 1, 2007 through June 30, 2009. A.B.D. has presented the City with an alternative plan through Delta Dental, which provides HMO style plan administration for dental services. This plan will be offered to employees in addition to our current indemnity plan as an alternative. The proposed plan is available at a lower premium cost, which represents a savings to the City, and would result in lower out-of- pocket costs for employees who choose it. G:V-IRWR Group DocumentslStaf Reports'Detta Dental HMO Contract 2008-2009.docx It is predicted that relatively few employees will enroll in this plan; however it does provide options for those employees for who control of out-of-pocket costs outweighs personal choice in their dental providers. The monthly premium per employee is as follows: Employee Only Employee + 1 dependant: Employee + 2 or more: $19.02 $34.27 $50.71 These premiums are significantly lower than our current PPO/Indemnity Dental plan premiums. The benefit for employees who choose this plan is that the out-of-pocket costs are lowered by using a "gatekeeper" dentist and receiving preauthorization for treatments. Fiscal Impact: There is no increase in costs associated with approving this contract. Depending upon the number of employees who enroll in the plan there could be a modest costs savings. Submitted by: Lori Carney, Human Res ces Manager Approval: - "Carlos Ort ga, City Mana• -r Division Head: Sheila Gilligan Assistant City Manager Community Services Paul Gibson, Finance Director CITY COUNCIL/ ACTION: APPROVED V DENIED RECEIVED OTHER WHTING DATE _j - �L% AYES: �'r au.5c 'Ii (� ti1e(*/ {i !1q oie NOES: Ntri� , r r ABSENT: /ti int_ ABSTAIN: N brie_.. VERIFIED BY: KAM Original on File withJCity Clerk's Office G:IHRIHR Group Documents \Staff Reports\Delta Dental HMO Contract 2008-2009.docx M I:II,:i:li January 16, 2008 Lori Carney Human Resources City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 RE: Delta Care Group # 02012-0074 & 0075 (COBRA) Dear Lori: Please find enclosed two (2) copies of the DeltaCare Group contract and two (2) copies of the HIPPA Business Associates Addendum. I have reviewed them for accuracy. Please obtain signatures on the signature pages and return a copy to me in the enclosed envelope. Please retain a signed copy for your files. Should you have any questions, please call me at (310) 543-9995. Sincerely, Deirdre Dwane Account Manager Enclosures cc: Kristin Yokoyama 1