3/3/1998 - Laserfiche WebLink

Home Browse Search

! 0 11.E. EMPLOYEE GROUP DENTAL INSURANCE - DIRECT DENTAL SYSTEMS, INC. & THIRD AMENDMENT TO PREMIUM CONVERSION PLAN Budget Director Joseph A. Baird reviewed his Memorandum of February 25, 1998: TO: James E. Chandler, County Administrator THRU: Joseph Baird, Director, Office of Management & Budget FROM: Beth Jordan, Risk Manager DATE: 25 February 1998 SUBJECT: Voluntary Group Dental Insurance Recommendation Staff requests consideration of the following information at the March 3, 1998, regular meeting of the Board of County Commissioners. Background At the direction of the Board, staff prepared IRC Proposal #8027 through which we requested proposals for a voluntary employee group dental insurance plan. On the November 21, 1997 the bid opened. Analysis Joe Baird, OMB Director, Tom Bisaillon, Acting Personnel Director, Ann Rankin, Employee Benefits Ri Representative, and Beth Jordan, Risk Manager, met with AI Waters and Hayden Knowlton of Waters Risk Management (WRS) to review the detailed responses. WRS previously provided consultant services for the County's property and casualty insurance remarketing,resulfing in substantial savings. Plans were reviewed for. services offered; cost; ease of use; participation requirements; provider network, if any plan stability, and service. Consensus was reached between staff and WRS that Direct Dental Systems, Inc. (DDS) provides the best product for County employees. DDS' strengths include its low nates with low participation requirements, complete freedom of choice of dental providers, and no limitations or exclusions of services. It is easy to use, with no co -payments, no pre-existing condition exclusions and no requirement for predetermination before dental services are performed. While it is a seli<- nsured lIan, the monthly payments act as a premium, providing both monthly accommodation for varying evels of claims activities and include stop loss insurance. At the end of a plan year, any unused premiums will be returned to the County for ongoing use in the dental program. Included in the premium is an eight (8) percent commission for local agent, Ron McCall. Premium costs were quoted for a minimum participation level of 50 employees: Additional cost savings will be realized in 50 -participant increments; i.e., premiums decline at 100, 150, 200, etc. The Sheriffs Office currently has 140 participants on a similar DDS plan. If these two groups were to merge upon renewal, for example, both would realize savings. Premiums for the two (2) DDS plans we recommend are: • This does not appear on the spreadsheet but closely approximates the current ADP plan. As with group health insurance premiums, employees will tax -defer premiums through the IRS Section 125 premium conversion plan currently in place. Recommendation Staff recommends the Board approve Direct Dental Systems, Inc. as the employee group dental Provider as well as authorize the ppremium deduction as provided by the Third re -tax Amendment to the County's premium conversion plan and adopt the authorizing resolution to effect this deduction. March 3, 1998 25 "® , Emoy"Only �l� Mor Annual dependent or move dependents DDeenduuctiNe Ber Befits Plan A• $11.05 $18.85 $26.50 $100.00 $am; 100°/6 first $100; th/6odo=aa1,�; no Pin B 1 $2128 $36.66 $52.30 $25.00$��1 e) $300 �A1roteld I 320 • This does not appear on the spreadsheet but closely approximates the current ADP plan. As with group health insurance premiums, employees will tax -defer premiums through the IRS Section 125 premium conversion plan currently in place. Recommendation Staff recommends the Board approve Direct Dental Systems, Inc. as the employee group dental Provider as well as authorize the ppremium deduction as provided by the Third re -tax Amendment to the County's premium conversion plan and adopt the authorizing resolution to effect this deduction. March 3, 1998 25 "® ,