HomeMy WebLinkAboutRES.2656.11-07-20114
BILL NO. 11-165
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 from CBIZ Benefits and Insurance Services, Inc. is
attached hereto and made a part hereof.
PASSED AND ADOPTED THIS / " ' DAY OF 20 !/
y E.edi r, Mayor
ATTEST:
Gayl
18)
CBIZ Benefits & Insurance Services, Inc.
11440 Tomahawk Creek Parkway
Leawood, KS 66211-9955 ■ www.ebizko.com
Te(: (913)234-1000 ■ Fax: (913) 234-1100
Novembet-l—,20-11 --- - - -_
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, 2012. 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. 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, 2011.
2011 Funding Analysis
Based on actual paid claims year-to-date in 2011, and estimated collected premium from September 2011, your year-
to-date expenses in 2011 are estimated as follows:
Claims (01/01/11 — 08/3 1/11) $120,270
Estimated Administrative Cost (3,816 x $5.56) 21,21
Estimated Expenses $141,487
Estimated Collected (01/0l/11— 08/31/11)
($18,543 x 8) $148,346
Your plan has collected $6,859 more than the cost of the plan for the first eight months of 2011.
CBIZ Benefits & Insurance Services, Inc.
CBIZ
Administrative Fee Renewal
As discussed above, your administrative fees has not changed since January 1, 2010. Delta Dental has requested a
5% increase (equivalent to $0.28) or from $5.56 per employee per month to $5.84 per month. They have agreed to
guarantee this level for 24 months, or until January 1, 2014.
Claims Experience
The attached report shows that your paid claims from 9/1110-8/31/11 were $171,591. This was an increase of
7.4% over 9/1/09-8/31/10, the time period used last year for renewal. Your average number of covered
employees increased (from 459 to 468) and your claim amount per employee per month decreased slightly
from $33.94 to $33.59 (your claims for August, 2011 were $14,135 or $29.45 per member per month).
Renewal Rate Recommendation
We have projected that the City will collect $222,519 in 2012, based on current participation in your plan as
well as the current billed rates. Delta has projected that expenses will be $227,300 in 2012. We recommend a
2% increase to cover projected expenses.
If we can provide any further information, please let us know. Thank you for your continued confidence and
support.
ohnson, CEBS
refits Consultant
/ego
Enc.
cc: Heather Brooks, City of Cape Girardeau
John Richbourg, City of Cape Girardeau
C81Z Benefits & Insurance Services, Inc.
CITY OF CAPE GIRARDEAU
Dental Plan Funding
As of 09/15/11
Active Employees and Retirees
Employee Only
Employee + Spouse Only
Employee + Child(ren) Only
Employee + Family
263 (477 Employee Units)
79
48
87
Current Funding (Projected for 2012)
477 x 28.51 = $13,599.27
79 x 17.70 = $1,398.30
48 x 15.18 = $728.64
87 x 32.38 = $2,817.06
$18,543.27 x 12 = $222,519.24