Renewal Rates for Voluntary Dental PlanTHE CITY OF
DUB ~ E
Masterpiece o~n the Mississippi
MEMORANDUM
November 14, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Acceptance of the Renewal Rates for the Voluntary Dental Plan
Personnel Manager Randy Peck is recommending acceptance of the renewal rates for
the voluntary dental plan.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~~~ ~~
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
THE CITY OF
DUB E
Memorandum
November 7, 2007
TO: Michael C. Van Milligen
City Manager
FROM: Randy Peck
Personnel Manager
SUBJECT: Acceptance of the Renewal Rates for the Voluntary Dental Plan
The premium for the dental plan, which is paid by the employee, will increase from
$32.12 per month to $33.73 per month for the single plan and from $96.31 per month to
$101.12 per month for the family plan. These rates would be in effect from January 1,
2007 through December 31, 2008. Employees who enroll in the dental plan will have
the payments deducted from their first two paychecks each month. The premiums will
be divided in two and they have to be an even number. Consequently, I recommend
that the amount employees will pay for the single premium be reduced from $33.73 per
month to $33.72 per month effective January 1, 2008 through December 31, 2008. The
City will be billed at the rate of $33.73 per month for employees who enroll in the single
dental plan. The requested action is for the City Council to approve the renewal rates
and authorize you to sign the attached financial exhibit.
If you have any questions, please feel free to call.
RP:tlb
City of Dubuque
Group # 725
Conh•act Period 1/1/08 through 12/31/08
Financial Exhibit
Experience Period Claims Paid 9/1/06 through 8/31/07
Clairns Paid 9/1/06 through 8/31/07 $95,856
Estimate of Incurred But. Not Reported Claims $2,965
Fully Incurred Claims $98,821
Trend in Claims $7,985
Projected Claims Based on Current Experience $106,806
Claims and Enrollment Fluctuation Adjustment ($16,143)
Projected Annual Claims Based on Current Enrollment $90,663
Fixed Fees
Administrative Fees
Operating Costs $18,569
BrokcrFcc $p
Subtotal Fixed fees $18,569
Projected Annual Expense $109,232
I acknowledge acceptance of this renewal at the rates shown above.
Delta Dental Premier®
Enrollment as of 8/31/07
Single 81
Family 63
Total 144
Current Rates
Effective 1/1/07 through 1231/07
Single $32.12
Family $96.31
Renewal Rates
Effective l/1/O8 through 12/31/08
Single $33.73
Family $101.12
12enewal Percentage Change
5.00%
Percent of Premium Contributed by Employer: Single ~ ___% Family 0
"total Employees 13nrolled: 13 5___ - _ "Total I:mployces Eligible: _5 12
Michael C. Van Milligen
Signature of Croup Administrator City Manager E-Mail Address
1'Iease sign and return to fax # 515-261-5573
DELTA DENTAL OF IOWA
llale
City of Dubuque
Group # 725
Alternate Rate Proposal
Financial Exhibit
Individual Maximum
Deductible
Individual
Family
Diagnostic and Preventive Services
Exams, cleanings, x-ray, fluoride treatments
Deductible applies
Basic Restorative Services
Fillings, Extractions,& Emergency treatment for pain
Deductible applies
Endodontics
Endodontics -nonsurgical
Endodontics -surgical
Deductible applies
Periodontics
Periodontics -nonsurgical
Periodontics -surgical
Deductible applies
Major Restorative Services
Crowns, inlays, onlays
Bridges and dentures
Repairs and adjustments to bridges and dentures
Deductible applies
Orthodontic Services
Coverage coinsurance
Individual lifetime maximum
Dependents eligible to age
Full-time students eligible to age
Adult orthodontics
Deductible applies
Dependent Eligibility
Dependents eligible to age
Full-time students eligible to age
Delta Dental
Premier®
$750
$25
$75
80%
Yes
80%
Yes
50%
50%
Yes
50%
50%
Yes
50%
50%
50%
Yes
50%
$750
19
19
No
Yes
19
99
•
~. .
ER Contribution*
Single
Two Person Number of benefit Eligible Employees*
Family
~ ~ •~ 1 1 11' ~ • 11'
Single Two Person Familv Annual Expense
Contracts 81 13 50
Insured rates (monthly premium)**
$33.73 $67.46 $109.87
* Please update employer contribution and number of benefit eligible employees above and sign below.
Return to Delta Dental of Iowa at fax # 515-261-5573
Signature
E-Mail Address
$109,232
9/25/2007
Delta Dental of Iowa
Summary of Covered Services and Benefits
l.I i oI Luau ue
Product: Delta Dental Premier® ~ ~ • '
•~
BENEFIT CATEGORIES $25/$75 $750
Check Ups and Teeth Cleaning
(Diagnostic and Preventive Services) Yes 20% Yes
1. Dental Cleaning
2. Oral Evaluations
3. Fluoride Applications
4. X-rays
Cavity Repair and Tooth Extractions
(Routine and Restorative Services) Yes 20% Yes
1. Emergency Treatment
2. General Anesthesia/Sedation
3. Restoration of Decayed or Fractured
Teeth
4. Limited Occlusal Adjustment
5. Routine Oral Surgery
Root Canals
(Endodontic Services) Yes 50% Yes
1. Apicoectomy
2. Direct Pulp Cap
3. Pulpotomy
4. Retrograde Fillings
5. Root Canal Therapy
Gum and Bone Diseases
(Periodontal Services) Yes 50% Yes
1. Conservative Procedures (Non-Surgical)
2. Complex Procedures (Surgical)
3. Maintenance Therapy
High Cost Restorations
(Cast Restorations) Yes 50% Yes
1. Cast Restorations
a. Crowns
b. Inlays
c. Onlays
d. Posts and Cores
Dentures and Bridges
(Prosthetics -replacement of missing teeth) Yes 50% Yes
1. Bridges
2. Dentures
Straighter Teeth
(Orthodontics) Limited to unmarried, Yes 50% $750
dependent children under age 19.
This is a general description of coverage. It is not a statement of vour contract.. Actual coverage is subiect to terms and
conditions specified in the benefit certificate itself and enrollment_regulations in force when the benefit certificate
becomes effective. Certain exclusions and limitations apply.
A dependent is an unmarried child under 19 years of age or a full-time student. Coinsurance is shown as the
percentage that is the responsibility of the member.
2007
City of Dubuque
Group #725
Enrollment Drops January, February, March 2007
January 20
February 5
March 5
Delta Dental of Iowa
CITY OF DUBUQUE
Delta Dental
Dental
Iowa
Management Report
rn1IU~IH)7
Executive Highlights of your group's experience from September 2006 through
August 2007.
Summary
Highlights
• 37.6% of paid claims were concentrated in preventive and diagnostic procedure categories.
• The average claim payment was $106.98, compared to your previous year's average of $99.52.
• The utilization rate, which measures the average number of claims filed annually was 6.18 per subscriber, compared to
your previous year's average of 5.80. Per member, the utilization rate was 2.71 compared to 2.47 in the previous year.
• The average age of your group was 34.4, compared to Delta's average of 34.0.
• 97.4% of the procedures were performed by Delta's network dentists.
• Savings due to Delta's cost management tools (reduction to maximum plan allowance, consultant review, optional procedures and eligibility
verification, etc.) were 9.5% of billed charges.
• The number of patients using the plan was 348 representing 105.4% of all members. In the prior period the numbers
were 336 and 102.5%.
• 3.4% of members met or exceeded their annual maximum benefit during the most recently completed benefit accumulation period.
C17'1~ OI'' Ul!13U(1UE
IN)725