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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.