HomeMy WebLinkAboutRES.2575.11-01-2010BILL NO. 10-156
RESOLUTION NO.�
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 is attached hereto and made a part hereof.
PASSED AND ADOPTED THIS DAY OF / VC��%r, 20 16
a4
Harry E. ilediger, Mayor
ATTEST:
Gayle . Conrad, City Cler 0
C
J TILS(�y.
CBIZ ,Benefits.& Insurance Services of Kansas City
11440 Tomahawk Creek Parkway.
Leawood, KS 66211-9955 ■ www.cbizkc.com
Ph: 913.234.1000 F: 913.234.1100
October 11, 2010
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
Dear Lori:
The City of Cape Girardeau's dental plan with Delta Dental will renew effective January 1, 2011. The
following is the information relative to that renewal.
Histo
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 last 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.
2010 Funding; Analysis
Based on actual paid claims year-to-date in 2010, and estimated collected premium from September
2010, your year-to-date expenses in 2010 are estimated at the following:
Claims (01/01/10 — 08/31/10) $109,272
Estimated Administrative Cost (3,670 x $5.56) $ 20,405
.$129,677
Estimated Collected (01/01/10 — 08/31/10) (17,940 x 8) $143,520
Your plan has collected $13,843 more than the cost of the plan for the first eight months of 2010.
CBIZ Benefits & Insurance Services, Inc.
Ms. Lori Meyer
Human Resources and Risk Manager
City of Cape Girardeau
October 11, 2010
Page Two
Administrative Fee Renewal
As discussed above, the administrative fees will remain the current level for 2011, or $5.56 per
employee per month.
Claims Experience
The attached report shows that your paid claims from 08/01/09 — 07/31/10 were $159,329. This
was an increase of 13.7% over 08/01/08 — 07/31/09, the time period used last year for renewal.
Your average number of covered employees increased (from 454 to 458) and your claim amount
per employee per month increased slightly from $25.73 to $29.01, an increase of 13% (your
claims for August, 2010 were $15,474 or $33.79 per member per month).
Renewal Rate Recommendation
We have projected that the City will collect $215,285 in 2011, based on current participation in
your plan as well as the current billed rates.
Delta has not provided a renewal rate analysis at this point. However, your plan seems to be
adequately funded, based on current experience.
If we can provide any further information, please let us know. Thank you for your continued
confidence and support.
Sincerely,
i . Johnson, CEBS .
for eaefits Consultant
/dlr
Enc.
cc: Heather Brooks, City of Cape Girardeau
John Richbourg, City of Cape Girardeau