HomeMy WebLinkAboutAgenda - 10-02-2001-8eORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Mae[Ing Da[g: October 2, 2001
Action Agen a
Item No.
SUBJECT: Em ployee Dental lnsurence for 2002
DEPARTMENT: Personnel PUBLIC HEARING: (VIN) No
ATTAGHMENT~SI: INFORMATION CONTACT:
Elaine Holmes. Pemonnel Direc[oq
EAension 2550
TELEPHONE NUMBERS:
Hillaborougb R2-010t
Chapel Xill 968iSGi
Durham fi88-]331
PURPOSE: To confirm the continuation of the County's tlental insurance rates for 2002 with nc
increase antl to authorize renewal with Delta Dental as [he County's dental insurence plan
administrator effective January t, 2002.
BACKGROUND: In summary, the County's tlental insurance program is aself-insured plan
administered by the Delta Dental Plan of N.C. as a third party adminis4ator. The renewal rate
quotations are amuedal and based cn utilization. Delta Den[al's actuary advises thatlhe
County's current rates will support the 2002 tlental program antl no rate Increase is necessary.
Delta Dental is inueasing its administrative fee from $1.65 to $1.62 per employee par month
effective January 1, 2002, but [hie fee increase can be absorbed within the current plan rates
and no rate increase is requiretl. Atlditicnal information is provided below.
County Contribution for Employee Genial Inaurenee
Shown below are the monthly dental insurance rates for 2002. The chart shows roe Total Coe[,
County COSt and Employee DOSl foreach coverage type. These are the same rates as for
2001. The County cprrtdbutipn for employee dental insurance is [he coat for intlividuel
employee coverage. The employee pays the cost of depentlent coverage.
Covange Type Total Caet Peid by County Paitl by Employee
Employee Only $19.38 $t93fi $8.88
EmployeelChildQen) $52.82 $19.38 ~ $33.44
EmployeelSpouce $4].42 $1938 $2804
EmployeelFamily $0].28 819.38 $4J 98
FINANCIAL IMPACT: Delta Dental atlvises that [he increase in atlministrative fee from $1.85 '
per employee per month to $1.82 per employee per month results from increases in its coat to
process claims and particularly reflects postal mle increases. The last fee increase was
January 1, 2000. The total cost of the fee increase for 2001-02 is about $800. Funtls are
available within the approved dental insurance budget far fswl year 2007-02.
RECOMMENDATION~S~: The Manager recommends that the Boartl ccnflim continuation of
the County's tlen[al insurance rates for 2002 with no increase antl authorize the Personnel
Dlrec[or to renew the Counry's agreement wdh Deka Dental as the Copnry's dental Insurance
plan administrator effactiJe January 1, 2002.