Loading...
HomeMy WebLinkAbout4.02 Dental Plan AmendAGENDA STATEMENT CITY C~ERK File # ^~~~-~~ ~ (QDD -~p CITY COUNCIL MEETING DATE: September 16, 1997 SUBJECT: EXHIBITS ATTACHED RECOMMENDATION Amendment to Benefit Plan - Prepared by: Lou Ann Riera-Texeira, Assistant to the City Manager Resolution Amending the Benefit Plan ~i(/~'~ Adopt Resolution FINANCIAL STATEMENT: Delta Dental has proposed renewal rates which will result in an increase of 15% effective October 1, 1997. Based on current enrollment, the approximate cost of this increase for the remainder of Fiscal Year 1997-98 (Oct 1997 - June 1998) is $5,025. Sufficient funds are included in the 1997-98 budget to cover these costs. DESCRIPTION: The City's Personnel Rules require the City Council to adopt a Benefit Plan. This Plan provides a summary of the City's benefit program including medical, dental, life and disability insurance, retirement, holidays, car and travel expenses, and participation in various voluntary benefit programs. The City currently provides dental insurance under contract with Delta Dental. The contract requires the City to pay the full premium rate for eligible employees including employees who regularly work 30+ hours per week. In addition, the contract provides that the City pay the premium for the employee only for those employees regularly scheduled to work between 20 and 29 hours per week. The City currently has a one year contract with Delta Dental which expires on September 30, 1997. Delta has informed the City of a proposed renewal rate increase of 15% for the period beginning October 1, 1997 and ending September 30, 1998. Delta has informed the City that the rate increase is based on the City's claims experience. Further, Delta indicates that its claims costs coupled with the City's experience results in a loss ratio of -34.4%. The current and proposed rates are shown below: Current Rate Proposed Rate Renewal Change One Party $ 37.86 $ 43.54 15% Two Party $ 72.74 $ 83.65 15% Three Party+ $122.04 $140.35 15% According to Delta Dental, renewal rates are based on the combined experience of more than 700 groups employing less than 100 employees each. Further, Delta indicates that pooling experience has proven to be the most reliable method of forecasting costs for groups of this size. ------------------------------------------------------------------- COPIES TOa ITEM NO. H/cc-form s/agd d elta.d oc ~CJ ~ .. ""11 Based on the City's current enrollment, the proposed renewal rates effective October 1, 1997, will result in an increase of approximately $5,025 for the remainder of Fiscal Year 1997-98. The attached resolution proposes amending the Benefit Plan to increase the City's current contribution to a maximwn of$140.35 per month for family coverage and $43.54 for the employee only. Staff recommends that the City Council .. review the proposed change and adopt the attached resolution. Further, staff proposes to review the ., existing Delta Dental plan and compare its competitiveness within the current insurance market.. tt tt -~- .. ~ RESOLUTION NO. - 97 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIfIi ......... AMENDIfliG THE BENEFIT PLAN WHEREAS, the Personnel System Rules require the City Council to adopt a Benefit Plan; and WHEREAS, the Benefit Plan prescribes the current benefits provided to employees by the City. NOW, TIIEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby amends Resolution No. 65-97 to include the following: Section 3. Dental Insurance: Beginning with the October 1997 premium, the City will contribute on behalf of each employee scheduled to regularly work at least 30 hours per week, a maximum of$140.35 per month to a dental insurance plan selected by the City. Beginning with the October 1997 premium, the City will contribute on behalf of each regular employee scheduled to work between 20 and 29 hours per week, a maximum of $43 .54 per month to a dental insurance plan selected by the City. PASSED, APPROVED AND ADOPTED this 16th day of September, 1997. . AYES: NOES: ABSENT: --- -- ABSTAIN: Mayor ATTEST: City Clerk Hlcc-fonnslresodt1adoc K2 /G/9-16-97 /resdentl.doc .