HomeMy WebLinkAboutRes.2723.11-05-2012BILL NO. 12-159
RESOLUTION NO. C:9-9073
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A CONTRACT WITH DELTA DENTAL FOR
EMPLOYEE DENTAL INSURANCE SERVICES, IN THE
CITY OF CAPE GIRARDEAU, MISSOURI
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE
GIRARDEAU, MISSOURI, AS FOLLOWS:
ARTICLE 1. The City Manager, for and on behalf of the City
of Cape Girardeau, Missouri, is hereby authorized to execute a
Contract with Delta Dental for employee dental insurance
services, in the City of Cape Girardeau. A copy of the proposal
information from CBIZ Benefits and Insurance Services, Inc. is
attached hereto and made a part hereof.
PASSED AND ADOPTED THIS
ATTEST:
- . 401,11 l c d
GayIII...
le O Conrad, City Clerk
DAY OF�GI//�/�, 20 A
Harry E. R Iger, Mayor
CBIZ
September 28, 2012
Ms. Lori Meyer
Human Resources and Risk Manager
City of Cape Girardeau
401 Independence Street
P.O. Box 617
Cape Girardeau, MO 63702
Re: Delta Dental Plan Update
Dear Lori:
CBIZ Benefits & Insurance Services, Inc.
11440 Tomahawk Creek Parkway
Leawood, KS 66211-9955 ■ www.cblzkc.com
Tel: (913)234-1000 ■ Fax: (913) 234-1100
The City of Cape Girardeau's dental plan with Delta Dental last renewed effective January 1, 2012 with a 24 month
rate guarantee. The following information will provide a mid -guarantee update.
History
As you know, the City sets their own conventional equivalent rates to fund the cost of your self-funded plan. Your
rates have remained stable for the past several years. In 2009, CBIZ reviewed the market with a Request for Proposal
(RFP). This process validated that Delta Dental was indeed the best carrier for the City's dental plan, based on pricing,
benefits, network and administrative capabilities. Effective January 1, 2010, Delta agreed to decrease their
administrative fee and guarantee that fee for two years, until January 1, 2012.
Effective January 1, 2012, Delta Dental requested a 5% increases in administrative fees, to a rate of $5.84 per
employee per month. Additionally, the City increased dental rates by 2% for the first time in many years.
2012 Funding Analysis
Based on actual paid claims year-to-date in 2012, and estimated collected premium from September 2012, your year-
to-date expenses in 2012 are estimated as follows:
Claims (01/01/12-08/31/12) $119,380
Estimated Administrative Cost (3,915 x $5.84) $22,864
Estimated Expenses $142,694
Estimated Collected (01/01/12-08/31/12) $156,072*
($19,509 x 8)
*There has been significant growth in participation on the plan since January 1, 2012 (485 employees to 501
currently). This would account for some of the excess estimated collected premium.
C1312 80WAIS & IOShrailCP Se:MC2's, Inc.
Claims Experience
Based on reporting from Delta Dental, your paid claims from 9/1/11-8/31/12 were $181,609. This was an
increase of 5.8% over 9/1/10-8/31/11, the time period used last year for renewal. Your average number of
covered employees increased (from 468 to 484) and your claim amount per employee per month increased
slightly from $30.55 to $31.24.
Renewal Rate Recommendation
We have projected that the City will collect $234,108.72 in 2013, based on current participation in your plan
as well as the current billed rates. Delta has projected that expenses will be $238,899 in 2013.
If we can provide any further information, please let us know. Thank you for your continued confidence and
support.
Sincerely,
David J. Johnson, CEBS
Senior Benefits Consultant
/ego
Enc.
cc: Heather Brooks, City of Cape Girardeau
John Richbourg, City of Cape Girardeau
f) I/ Be c!lfs & !nsuraI c'e, S'' .fv ccS, Inc,