HomeMy WebLinkAboutRES.2315.11-05-2007BILL NO. 07-190
RESOLUTION NO. A315
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 5 +� DAY OF A, 20 O y
ay B. nudtson, Mayor
®! CBIZ Benefits & Insurance Services, Inc.
11440 Tomahawk Creek Parkway
Leawood, Kansas 66211
Main: (913) 234-1000
Toll Free: (800) 530-5866
Fax: (913) 234-1100
October 22, 2007
Mr. David Milam
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
As you know, your dental plan with Delta Dental will renew effective January 1, 2008. The following is
the information relative to that renewal.
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.
Claims Experience
The attached report shows your paid claims from 09/01/06 to 08/31/07 were $154,094. This was a
total increase of 9.8% over the same time period last year. Your average number of covered
employees increased (from 432 to 439) and your claim amount per employee per month increased
from $27.02 to $29.27, an increase of 8.3%.
Administrative Fee Renewal
Delta is again requesting an increase in administrative costs. This is an increase of 5% and is their
standard increase. Your cost will go from $5.32 to $5.59 per employee per month.
Renewal Rating
Your actual paid claims for the past 12 months were very close to those projected by Delta at last
year's renewal ($843 more). After an increase for reserves, and an increase for projected trend,
Delta Dental expects your incurred claim number to be $168,273 for the 2008 plan year. This cost,
combined with the renewal administrative charge of $5.59 per employee per month develops an
expected annual cost of $196,912.
11440 TOMAHAWK CREEK PARKWAY • LEAWOOD, KANSAS 66211 • 913-234-1000 • FAx: 913-234-1100
Mr. David Milam
City of Cape Girardeau
October 22, 2007
Page Two
We have projected that the City will collect $176,239 in 2008, based on the current participation in
your plan as well as the current billed rates. This is about 11.7% less than projected expenses.
Renewal Rate Recommendation
While this projected increase in costs is about $21,000 more than projected collected premium, the
City may wish to absorb this increase without increasing rates for employees or for dependents.
If we can provide any further information, please let us know.
Sincerel
Dav . Johns n, CEBS
Senior Benefits Consultant
/dlr
Attachment
11440 TOMAHAWK CREEK PARKWAY • LEAWOOD, KANSAS 66211 .913-234-1000 9 FAX: 913-234-1100
CITY OF CAPE GIRARDEAU
Dental Plan Funding
As of 10/04/07
Active Employees
Employee Only 208
Employee + Spouse Only 57
Employee + Child(ren) Only 46
Employee + Family 77
Retirees
Employee Only 32
Employee + Spouse Only 15
Employee + Child(ren) Only 0
Employee + Family 2
Total
Employee Only 240 (437 Employee Units)
Employee + Spouse Only 72
Employee + Child(ren) Only 46
Employee + Family 79
Current Fundin_g (Projected for 2008)
437 x 23.24 = $10,155.88
72 x 17.70 = $1,274.40
46 x 15.18 = $698.28
79 x 32.38 = $2,558.02
$14,686.58 x 12 = $176,239
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