HomeMy WebLinkAboutRes.2787.11-04-2013BILL NO. 13-150 RESOLUTION NO. C�2 7 � 7
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. Said Contract shall
contain the terms set out in the proposal from Delta Dental. 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 � DAY OF /VC✓LSYkvi , 2013.
ATTEST:
GayleAL. Conrad, City Clerk
Harry E. Red'ger, Mayor
CBIZ Benefits & Insurance Services, Inc.
11440 Tomahawk C(eek Parkway
Leawood, KS 66211-9955 a www.cbizkc.com
Tel: (913)234-100D . Fax: (913) 234-1100
September 28, 2013
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 Renewal Effective January I, 2014
Dear Lori:
The City of Cape Girardcau's dental plan will again renew on January I, 2014. The following are the results of that
renewal.
Histol t
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
(RPP). This process validated that Delta Dental was indeed the best carrier for the City's dental plan, based oil 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 I, 2012.
Effective January I, 2012, Delta Dental requested a 5% increase in administrative fees, to a rade of $5.84 per employee
per month. Additionally, the City increased dental rates by 2% for the first tine in many years. The City continued at
existing levels for 2013.
2013 FundinL Analysis
Based oil actual paid claims year-to-date in 2013, and estimated collected premium front September 2013, your year -
lo -date expenses in 2013 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 (01/01/13 —08/31/13) $157,480
($19,685 x 8)
CBIZ Benefits 8 Insurance Services. Inc.
Claims Exaerienee
Based on reporting from Delta Dental, your paid claims from 9/1/12-8/31/13 were $165,420. This was a
decrease of 9% over 9/1/11-8/31/12, the time period used last year for renewal. Your number of covered
subscribers increased (from 497 to 508) and ),our claim amount per employee per month decreased slightly
from $31.24 to $27.75.
Administrative Fee
Delta has agreed to renew ),outadministration fee at the current level for the next 12 months.
Renewal Rate Recommendation
We have projected that the City will collect $236,218 in 2014, based on current participation in your plan as
well as the current billed rates. Delta has projected that expenses will be $226,546 in 2014. We would
recommend that you continue at yom' current funding levels for 2014.
If we can provide any further information, please lel us know. Thank you for your continued confidence and
support.
DaNkA ]ohnson, CEBS
Senior Ifeliefits Consultant
/ego
Enc.
cc: John Richbourg, City of Cape Girardeau
CBIZ Benefits A Insurance Services. Inc.