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Voluntary Dental Plan_ Acceptance of Renewal RatesMasterpiece 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: November 12, 2011 Dubuque Af•AmedcaCity 11111 ! 2007 Personnel Manager Randy Peck is recommending City Council approval of the premiums for the dental plan, which are paid by the employee. The single premium will be reduced from $35.44 per month to $32.96 per month. The family premium will be reduced from $106.23 per month to $98.79 per month. The 7% reduction is attributed primarily to the fact that last year employees were required to enroll for the entire twelve months unless there is a qualifying event. I concur with the recommendation and respectfully request Mayor and City Council approval. mit44 Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Randy Peck, Personnel Manager Masterpiece on the Mississippi TO: FROM: SUBJECT: DATE: Michael C. Van Milligen, City Mana Randy Peck, Personnel Manager Acceptance of Renewal Rates for the Voluntary Dental Plan November 9, 2011 Dubuque htszl AI- America Ch 2007 The premiums for the dental plan, which are paid by the employee, will be reduced by 7% for the plan year beginning January 1, 2012 through December 31, 2012. The single premium will go from $35.44 per month to $32.96 per month. The family premium will go from $106.23 per month to $98.79 per month. The reduction is attributed primarily to the fact that last year employees were required to enroll for the entire twelve months unless there is a qualifying event. The Health Care Committee has approved the renewal rates. The requested action is for the City Council to approve the renewal rates and authorize you to sign the attached Financial Exhibit. RP:jmh +� DELTA DENTAL City of Dubuque Group # 725 - Revised Contract Period 1/1/12 through 12/31/12 Financial Exhibit Experience Period Claims Paid 9/1/10 through 8/31/11 Claims Paid 9/1/10 through 8/31/11 $79,878 Estimate of Incurred But Not Reported Claims $2,470 Fully Incurred Claims $82,348 Trend in Claims $5,534 Projected Claims Based on Current Experience $87,882 Claims and Enrollment Fluctuation Adjustment $1,485 Projected Annual CIaims Based on Current Enrollment $89,367 Fixed Fees Administrative Fees Operating Costs $15,771 Broker Fee $0 Subtotal Fixed Fees $15,771 Projected Annual Expense $105,138 1 acknowledge acceptance of this renewal at the rates shown above. testa Dental Premier® Enrollment as of 8131/11 Single 71 Family 65 Total 136 Current Rates Effective 1/1/11 through 12/31/11 Single $35.44 Family $106.23 Renewal Rates Effective 1/1/12 through 12/31/12 Single $32.96 Family $98.79 Renewal Percentage Change -7.00% If a member elects this voluntary benefit plan coverage, they will be required to continue coverage for 12 months before they may discontinue coverage. Percent of Premium Contributed by Employer: Single % Family Total Employees Enrolled: 138 Total Employees Eligible: 549 Signature of Group Administrator Please sign and return to fax # 888 -264 -1433 Michael C. Van Milligen City Manager E -Mail Address DELTA DENTAL OF IOWA Date