Loading...
HomeMy WebLinkAboutRes.2932.11-02-2015BILL NO. 15-204 RESOLUTION NO.,�V4) 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 is attached hereto and made a part hereof. �( PASSED AND ADOPTED THIS DAY OFNbj@ jk1-, 2015. arry E. Rediger, Mayor ATTEST: Ao j� ' Gayle, Conrad, City Clerk Q CBIZ Benefits & Insurance Services Kansas City September 28, 2015 Ms. Lori Mever Human Resources and Risk Manager Cite of Crape Girardeau 401 Independence Street P.O Box 617 Cape Girardeau, MO 63702 Re: Delta Dental Plan Anniversary --No renewal Action Dear Lori: As you will remember, the City of Crape Girardeau's dental pian renewed on January 1, 2015. That renewal action was a 2 year guarantee, Thus, there is no action required for the dental plan this year. The following is simply an update on the current financial position of the dental plan. 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. Effective January I. 2012, Delta Dental requested a 5% increase in administrative fees, to a rate of 55.84 per employee per month. Additionally, the City increased dental rates by 2% for the first time in many years. The City continued at existing levels for 2013 Effective January I. 2014, Delta Dental requested no increase in administration fees, and the City elected to keep funding levels unchanged. Delta again requested no increase in administrative fees for the 2015 renewal, which will remain in effect until January 1, 2017, 2015 Fundine Analvsis Based on actual paid claims year-to-date in 2015, and esrimated collected premium from July 2015, }our year-to-date expenses in 2015 are estimated as follows - Claims ((11'01'15- 0?%31 15) 5113,220 Estimated Administrative Cost (3.4'3 x $5,84) S 20 ^g2 Estimated Expenses 5133,502 Estimated Collected (01!01'15 07/31/15) $126.910 ($18,130 x 7) 1 CBIZ Benefits & nsurance Ser\,ces Kansas C t> Claims Experience Based on reporting from Delta Dental, sour paid claim. from y 1 14-8, 31 '15 were $193,609. This way an increase of 81,Q' orer 9' 1 1 1-8,'3 1 14. the time period used last \ ear for renewal ) our number of' covered subscribers decreased (from 484 to 478) and your claim amount per emplo}ee per month increased from $30.85 to $33 75 Funding Analysis We hate projected that the City will collect $217.555 in 2016. haled on current participation in your plan as well as the current billed rates Delta has projected that e\penses will be $237.276 in 7016. We �%ill perform another funding analysts in late 2016 to determine if am premium adjustment would be needed in 201 7.. If we can provide any further information. please let us know Thank you for\our continued confidence and support. Sincerer David J. Johnson, CESS Senior Benefits Consultant CPO Enc. CC] John Kichbourg, City of'Cape Girardeau 2 City of Cape Girardeau 2016 Health Insurance Rates — ACTIVE EMPLOYEES Effective January I, 2016 Monthly Premium Rate Costs PPO Rates Employee Only Employee & Spouse Employee & Child(ren) Employee & Family $553.84 $401.42 $301.04 $702.50 PPO Rates — Narrow Network (New Option in 201 S) Employee Only Employee & Spouse Employee & Child(ren) Employee & Family $526.88* $344.92 $251.56 $631.38 HSA Rates' Employee Only Employee & Spouse Employee & Child(ren) Employee & Family $504.80 $364.06 $273.06 $637.14 HSA Rates — Narrow Network t (New Option in 201 S) Employee Only Employee & Spouse Employee & Child(ren) Employee & Family $480.40** $313.84 $229.04 $573.90 Dental Rates Employee Only Employee & Spouse Employee & Child(ren) Employee & Family $29.08 $18.06 $15.48 $33.04 Cost of "Employee Only" plan paid by the City. All other dependent premiums paid by employee. * PPO Narrow Network "Employee Only" will receive an additional $28 per month gross pay on their paycheck. **HSA Narrow Network "Employee Only" will receive an additional $25 per month gross pay on their paycheck. tAn additional $50 per month is contributed to employee's Health Savings Account. City of Cape Girardeau 2016 Health Insurance Rates — COBRA Effective January 1, 2016 Monthly Premium Rate Costs* PPO COBRA Rates Employee Only Employee & Spouse Employee & Children $565.94 $97539 $873.011 PPO COBRA Rates — Narrow Network (New Option in 2015) Employee Only Employee & Spouse Employee & Children $537.42 $889.24 $794.01 NSA COBRA Rates EmploVee Only Employee & Spouse EmploVee & Children $514.90 $886.24 $793.42 HSA COBRA Rates — Narrow Network (New Option in 2015) EmploVee Only Employee & Spouse Employee & Children $490.01 $810.12 $723.63 Dental COBRA Rates Employee & Family $1,282.49 Employee & Family $1,181.43 Employee & Family $1,164.78 EmploVee & Famlly $1075.39 Employee Add Spouse Add Children Add Family $29.66 $48.08 $45.46 $63.36 *The responsible parte pays all premium costs. All monthly costs are based on applicable premium rate plus 2% administrative fees.