6.5 Renew Dental Care Benefits
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DA-rE
1/12/2009
l-IME
4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR
NO: 6 Human Resources AGENDA:
ITEM BY: Natalie FiSCher~ A6
NO. 5 BY:
Page 1
ITEM: Resolution No. 09-6589
Authorize City Manager to renew with Delta Dental of Kansas, Inc. for dental care benefits effective
February 1, 2009.
BACKGROUND:
In January 2006, Bob Charlesworth with Charlesworth & Associates, L.C. reviewed the administrative
fee structure proposed by Delta Dental, and found that the fees proposed to the City of Salina were in
line with the market. He also noted that Delta Dental of Kansas, Inc. passes the provider discounts to
the plan, which benefits our plan, verses some insurance plans that retain the discounts.
Following is the past monthly administration fee schedule as well as proposed schedules for 2009 and
2010.
2006 $3.00
2007 $3.00
2008 $3.25
Proposed renewal
2009 $3.25 (no increase)
2010 $3.40
The City of Salina currently does not have any concerns with customer service or services provided by
Delta Dental.
FISCAL NOTE:
Our current census includes 606 contracts. At this 'evel, the annual dental administrative fees are
estimated at $23,634. Funds for related health insurance plan expenses, including the administrative
services provided by Delta Dental of Kansas, Inc., are budgeted in the Employee Benefit Fund, which
is funded by monthly "prerniums" shared by errlployer, employee, and sub-groups. In the 2009 budget,
a 100/0 increase to premiums was assessed to the City and the employees in anticipation of increased
health care expenses.
RECOMMENDED ACTION:
Authorize City Manager to sign Renewal Confirmation No.1, Section 1, No. 6 with Delta Dental of
Kansas, Inc. for dental care benefits.
REVISED: January 6, 2009
RENEWAL CONFIRMATION NO.1
FOR GROUPW90396
Attaclled to and fonning a part of the Agreement To Provide Dental Care Ben~fits between
City of Salin-a (plan #-90396) and _Delta Dental of Kansas, Inc.
It is agreed and understood tllat effective with the February 1, 2009, renewal, Section_ Ij Number 6 sllall
read:
OPTION I - 1 YR
RATE,: Admin Rate: $3.40
NOTE: Change Renewal Date to February 1, 2009
D
OPTION II- 2 YR
RATE:- Admin Rate: $3.25 - N"o Increase
*NOTE: :2 year agreement: Pass for 2009 and $3.40 for 2010
Change ,Renewal Date to February 1, 2009
D
-OPTION III - 3 YR
RATE-: Admin Rate: $3.25 - No Increase D
**NOTE: 3 year -~gree,ment:' Pass for 2009 and ,$3.40 for 2010 and $3..55 for 2011..
Chang:e 'Renewal Date to February 1,2009
Please acknowledge acceptance of your option for this renewal by signing beltJw and returning one copy
of,theren'ewal confirmation in the enclosed, self-addressed envelope or fax to 316-462-3329 by
January 8, 2009.
Printed Noone
Date
Signature
Agent's Name
,~~ hX d1nJ~P~
Delta Dental afKansas, Inc.