HomeMy WebLinkAboutC27650 - CA2 Delta Dental through 6/30/2011 CITY OF PALM DESERT
HUMAN RESOURCES DEPARTMENT
STAFF REPORT
REQUEST: Request for approval of one year renewal Contract No. C27650
with Delta Dental through June 30, 2011.
SUBMITTED BY: Lori Carney, Human Resources Manager
CASE NOS. N/A
DATE: June 24, 2010
CONTENTS: Staff Report
Contract C27650 Delta Dental — Renewal Amendment
Recommendation:
By Minute Motion authorize Mayor to approve Amendment No. 2 to Contract No.
C27650 with Delta Dental through June 30, 2011.
Backqround:
The City receives broker services from Wells Fargo Insurance for dental, vision, life and
LTD insurance. Wells Fargo negotiates rates and contracts on our behalf as part of a
municipal pool. The City approved Contract No. C27650 with Delta Dental to provide
employee dental benefits on May 8, 2008, and has continued the contract through
June 30, 2010.
Wells Fargo has negotiated a contract renewal for the City with Delta Dental, which
continues our employee dental benefits at reasonable rates. This amendment renews
the contract through June 30, 2011. The City would likely experience substantially
increased costs if it were to leave the municipal pool and seek a plan on the open
market. In fact, we are experiencing a significant savings in our Long Term Disability
premiums as part of the pool.
Annual costs for dental benefits fluctuate with the number of employees and family
sizes; however the approximate cost will be $175,605.60 annually, which has been
accounted for in the Fiscal Year 2010/2011 budget. The monthly premium per
employee is as follows:
Staff Report
Delta Dental Contract Amendment No. 2 (C27650)
June 24, 2010
Page 2 of 2
Employee Only $43.67
Employee + 1 dependant: $82.34
Employee + 2 or more: $139.02
This represents an average increase of 5%, the total increase over 2009 rates is
$8,758. This is a reasonable increase in cost in line with expectations and industry
standards. The increase is more than offset by a $39,745 (26.4%) reduction in Long
Term Disability premiums for FY 2010/2011. Staff anticipates the City will save
approximately $21,000 in auxiliary benefit premiums in the coming year.
Fiscal Analvsis
Total annual costs of approximately $175,605.60, funds are available in the FY
2010/2011 budget.
Submitted b �
Lori Carney,
Human Resources Manager
Approval:
�
J ohlmuth, Paul Gibson,
it Manager Finance Director
CITY COUNCtLACTION
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VERIFIED I3Y:
Original on File with City Clerk's tice
AMENDMENT NO. 2 TO AGREEMENT
RENEWAL
GROUP #65
AGREEMENT dated July 1, 2007, between CITY OF PALM DESERT and DELTA DENTAL OF
CALIFORNIA "Delta Dental," is hereby amended, efFective ]uly 1, 2010, as follows:
Paragraph 1.4 is amended to read:
1.4 "Contract Term" means the period beginning on ]uly 1, 2010, and ending on June 30, 2011 and
each subsequent yearly period during which this Contract remains in effect.
Sub-paragraph 2 of paragraph 3.1 is amended to read:
$43.67 for each Primary Enrollee without Dependents;
$82.34 for each Primary Enrollee with one Dependent; and
$139.02 for each Primary Enrollee with two or more Dependents.
Sub-paragraph 7 of paragraph 4.3 is amended to inciude:
I.V. Sedation
Paragraph 4.7 (b) is amended to read:
(b) Delta Dental pays for full-mouth x-rays only after five years have elapsed since any
prior set of full-mouth x-rays was provided under any Delta Dental plan.
Delta Dental pays for a panoramic x-ray provided as an individual service only after
five years have elapsed since any prior panoramic x-ray was provided under any Delta
Dental plan.
Paragraph 4.8 (i) is amended to read:
(i) Charges for anesthesia, other than general anesthesia or I.V. sedation administered by
a licensed Dentist in connection with covered Oral Surgery services and select
Endodontic and Periodontic procedures.
Paragraph 4.8 (m) is amended to read:
(m) Occlusal guards and complete occlusal adjustment.
URF# 1056151
,
CITY OF PALM DESERT
DELTA DENTAL GROUP #65
Date Amendment Signed:
By:
Signature
Printed Name
Title
DATE: 7une 1, 2010
DELTA DENTAL OF CALIFORNIA
,^—'�P.G'+s�- �
Belinda Martinez
Senior Vice President
Sales/Marketing
,��� �.__.Y_.o.,�.
�
Kenneth E. Bernardi
Vice President
Underwriting &Actuarial
URF# 1056151
Delta Dental Premiums
2010 Premiums (effective July 1, 2010)
Employee
Count Premium Total
Employee Only 28 $ 43.67 $ 1,222.76
Employee + 1 43 $ 82.34 $ 3,540.62
Employee +2 or more 71 $ 139.02 $ 9,870.42
Total Monthly $ 14,633.80
Annually (12 months) $175;605.60
2009 Premiums (effective July 1, 2009)
Employee
Count Premium Total
Employee Only 36 $ 41.49 $ 1,493.64
Employee + 1 46 $ 78.23 $ 3,598.58
Employee +2 or more 80 $ 132.09 $ 10,567.20
Total Monthly $ 15,659.42
Annually (12 months) $187,913.04
Per Emp/oyee Increase
Employee Only 4.99%
Employee + 1 4.99%
Employee +2 or more 4.98%
Prepared by Icarney 6/16/2010 Page 1