5.5.
CC Regular Session
- Meeting Date:
- 10/25/2022
- By:
- Colleen Lasher, Administrative Services
Information
Title:
Approve Dental Insurance Renewal
Purpose/Background:
The purpose of this case is for the City Council to Approve Renewing the City's dental plan with Delta Dental.
The City of Ramsey has been with Delta Dental since at least 2007. Delta Dental has been good to work with and staff have not received complaints regarding the services. The last dental increase was in 2016 when the rate went from $32.15 to $33.45 for single coverage. Last month staff received the renewal for 2023 and the renewal came in at an overall increase of 5.65%, as follows:
The City covers the single premium in full as provided for in the four union contracts and the Personnel Policy. Based on current enrollment of 75 employees, the additional costs to cover the increase to the single premium is $3,951 for the year. When the renewal was received, the City's benefits broker, Gallagher Benefits Services, was still awaiting the results of the City's dental RFP. Staff met with Gallagher Benefits on Thursday, October 6th to learn the details of the RFP which was 3 business days prior to open enrollment.
While the bids received from the RFP process showed some financial savings, given the timing of open enrollment and when factoring in the disruption to providers that employees have access to, changes in benefit coverages, and administrative cost of switching carriers, the potential for net savings is greatly reduced. As of the date of this writing, 30 of the City's 90 benefit eligible employees have submitted their 2023 elections. Therefore, staff believes that remaining with the current dental plan through Delta Dental through 2023 best meets the City and employee needs.
The City of Ramsey has been with Delta Dental since at least 2007. Delta Dental has been good to work with and staff have not received complaints regarding the services. The last dental increase was in 2016 when the rate went from $32.15 to $33.45 for single coverage. Last month staff received the renewal for 2023 and the renewal came in at an overall increase of 5.65%, as follows:
| Renewal Rates | |||
| Current Rates | Eff. 01-01-2023 | ||
| Employee Only | $ 33.45 | $ 37.84 | |
| Employee + Spouse | $ 82.20 | $ 75.68 | |
| Employee + Child(ren) | $ 134.35 | $ 112.54 | |
| Family | $ 134.35 | $ 146.40 | |
The City covers the single premium in full as provided for in the four union contracts and the Personnel Policy. Based on current enrollment of 75 employees, the additional costs to cover the increase to the single premium is $3,951 for the year. When the renewal was received, the City's benefits broker, Gallagher Benefits Services, was still awaiting the results of the City's dental RFP. Staff met with Gallagher Benefits on Thursday, October 6th to learn the details of the RFP which was 3 business days prior to open enrollment.
While the bids received from the RFP process showed some financial savings, given the timing of open enrollment and when factoring in the disruption to providers that employees have access to, changes in benefit coverages, and administrative cost of switching carriers, the potential for net savings is greatly reduced. As of the date of this writing, 30 of the City's 90 benefit eligible employees have submitted their 2023 elections. Therefore, staff believes that remaining with the current dental plan through Delta Dental through 2023 best meets the City and employee needs.
Funding Source:
The additional funding required is estimated to be approximately $3951 and will be accounted for within the 2023 budget.
Recommendation:
To renew coverage with Delta Dental through 2023 and seek updated proposals from dental carriers well ahead next fall's open enrollment.
Outcome/Action:
Motion to approve the following:
1) Direct staff to renew the Delta Dental policy for the calendar year of January 1, 2023 through December 31, 2023; and
2) Direct staff to seek updated dental proposals in preparation for 2024 benefits.
1) Direct staff to renew the Delta Dental policy for the calendar year of January 1, 2023 through December 31, 2023; and
2) Direct staff to seek updated dental proposals in preparation for 2024 benefits.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Brian Hagen | 10/20/2022 02:56 PM |
- Form Started By:
- Colleen Lasher
- Started On:
- 10/17/2022 08:30 AM
- Final Approval Date:
- 10/20/2022