Renewal Rates for Voluntary Dental PlanMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Acceptance of Renewal Rates for the Voluntary Dental Plan
DATE: October 26, 2010
Dubuque
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AI- Amalca cm►
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2007
Personnel Manager Randy Peck is recommending City Council approval of the renewal
rates for the Voluntary Dental Plan, which is paid in full by the employees. The
premiums will remain at $35.44 per month for the single plan and $106.23 per month for
the family plan. In addition, if an employee elects coverage, they will be required to
enroll for the entire twelve -month period unless there is a qualifying event. Under the
current plan design, employees are able to drop coverage anytime during the year.
Coverage will also be extended to young adults up to age 26.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
Mich el C. Van Milligen
Masterpiece on the Mississippi
TO:
FROM:
SUBJECT:
DATE:
RP:sya
Attachment
Michael C. Van Milligen, City Manager
Randy Peck, Personnel Manager V '
Acceptance of Renewal Rates for the Voluntary Dental Plan
October 15, 2010
Dubuque
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2007
The premiums for the dental plan, which are paid by the employee, will remain the same
for the plan year beginning January 1, 2011 through December 31, 2011. The
premiums will remain at $35.44 per month for the single plan and $106.23 per month for
the family plan. In addition, if an employee elects coverage, they will be required to
enroll for the entire twelve month period unless there is a qualifying event. Under the
current plan design, employees are able to drop coverage anytime during the year.
Coverage will also be extended to young adults up to age 26. The Health Care
Committee has approved the renewal rates, requiring employees who elect coverage to
be enrolled for the entire twelve months and extending coverage to young adults up to
age 26. The requested action is for the City Council to approve the renewal rates and
authorize you to sign the attached Financial Exhibit and the agreement to extend
coverage to young adults up to the 26.
4C1 DELTA DENTAL'
Experience Period Claims Paid 9/1/09 through 8/31/10
Claims Paid 9/1/09 through 8/31/10
Estimate of Incurred But Not Reported Claims
Fully Incurred Claims
Trend in Claims
Projected CIaims Based on Current Experience
Claims and Enrollment Fluctuation Adjustment
Projected Ari ua1 Claims Based on Current Enrollment
Fixed Fees
Administrative Fees
Operating Costs
Broker Fee
Projected Annual Expense
I acknowledge acceptance of this renewal at the rates shown above.
Percent of Premium Contributed by Employer: Single
Total Employees Enroljred)
Signature of CrroupiAdrninistrator
Please sign and return to fax # 515- 261 -5573
Michael C. Van Milligen,
City of Dubuque
Group # 725
Contract Period 1 /1 /11 through 12/31/11
Financial Exhibit
0 % Family 0
%
$88,721
$2,744
$91,465
$6,146
$97,611
($5,188)
$92,423
$18,930
$0
Subtotal Fixed Fees $18,930
$111,353
If a member elects coverage, they will be required to enroll for the entire 12 month period.
Total Employees Eligible: 540
citypers @cityofdubuque.orq
E -Mail Address
City Manager DELTA DENTAL OF IOWA
Delta Dental Premier
Enrollment as of 8 /31/10
Single
Family
Total
67
65
132
Current Rates
Effective 1 /1 /10 through 12/31/10
Single $35.44
Family S106.23
Renewal Rates
Effective 1/1/11 through 12/31/11
Single $35.44
Family $106.23
Renewal Percentage Change
0.00%
D /UP6/4(
LI DELTA DENTAL`
As part of the Patient Protection and Affordable Care Act, ( "PPACA ") young adults up to age 26
are eligible for coverage under their parent/guardian's health care plans, regardless of marital
status, dependent status, student status, or residency. Although this provision does not apply to
stand -alone dental or vision insurance, Delta Dental of Iowa will allow young adults up to age 26
to be covered under their parent /guardian's policies.
Delta Dental will implement the expanded coverage depending on the type of dental plan listed
below:
• Small "Pooled" Group (2 to 50 eligible employees) - Effective January 1, 2011, Delta
Dental will provide benefits to any adult child up to age 26 that is included in the
eligibility data provided by a small group employer.
• Large Fully Insured and Self - Funded Groups (50+ eligible employees) - Effective
immediately, during the renewal process, Delta Dental will offer employer groups the
opportunity to add coverage for adult children up to age 26. Should an employer wish to
add this benefit prior to their next renewal period, please contact your Delta Dental
representative at 1- 877- 423 -3582.
• Individual Dental - Effective July 1, 2010, all individual subscribers will have the ability
to add coverage for adult children up to age 26.
As a reminder, the Iowa Continuation of Adult Children Coverage regulation requires fully
insured and self - funded public plans covered by Iowa Code Section 509A to cover adult children
up to age 25. Should a large, fully- insured or self - funded public plan not elect to add coverage up
to age 26, the Iowa regulation will still apply.
For your dental and/or vision coverage plan, do you want to extend eligibility to young adults up
to age 26?
Group Name City o Dubuque
Signature
sy Yes, please add benefit at renewal
0 No, not at this time
Date /G/ 6 / 7 ;
Michael C. Van Milligen, City Manager