From
Lisa Norris, Human Resources Director
Title
Enter into a three-year agreement with Metlife for fully insured dental insurance benefits effective January 1, 2015 through December 31, 2017 in the amount of $2,049,121 over the three years, based on the following recommendations:
1) Two-year rate guarantee, with a maximum capped increase of 8% in year three, for Dental PPO Fully insured benefits for an estimated annual amount in years one and two of $619,323 per year and an amount of $668,869 in year three for a total contract value of $1,907,514 over three years; and
2) Two-year rate guarantee, with a maximum capped increase of 7.5% in year three, for Dental Maintenace Organization benefits (DMO) for an estimated annual amount of $46,051 in years one and two and an estimated $49,505 in year three for a total contract value of $141,607 over three years.
3) These agreements shall include the option for the city manager to authorize annual renewals so long as such renewal costs are appropriated in the annual budget and do not exceed $50,000, or more than a 25% increase, over the original contracted rate, for all renewals in total.
Presenter
Lisa Norris, Human Resources Director
Recommend Action
Approve
Analysis
Effective December 31, 2014, our current agreements with Delta Dental (Dental PPO) and Metlife (Dental DMO) expire. The City issued a Request for Proposal (RFP) in May for quotes on our existing plans and/or other options through through the City's Purchasing Department. Responses were due in mid-May 2014. Many companies reviewed the RFP, with 11 carriers responding to the Dental PPO proposal and 8 carriers responding to the DMO dental portion. Proposers were competitive in both areas. Analysis and scoring of proposals received by Dental Plan (PPO versus DMO) are attached. Analysis was completed by our Benefits Consultant, Morgan Young, and our city Human Resources benefit team.
The City currently offers three different types ...
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