HomeMy WebLinkAboutAgenda - 10-05-1999 - 8gOrange County
Board of Commissioners
Action Agenda Item Abstract
Meeting Date: October 5, 1999
Action Agenda
Item No. 8.. a
Subject: Employee Dental Insurance for 2000
Department: Personnel
Attachment(s):
Draft Monthly Dental Insurance Rates
Public Hearing: Yes No X
Budget Amendment
Needed: Yes No X
Information Contact:
Elaine Holmes, Personn el Director
Extension 2550
Telephone Number:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 227-2031
Purpose: To consider an increase in rates for employee dental insurance effective
January 1, 2000.
Background: The County's employee dental insurance program is aself-insured plan and
Delta Dental is the County's administrator for the plan. Delta Dental has recommended
County rates for the 2000 calendar year (beginning January 1, 2000).
In summary, Delta Dental recommends the County increase its rates. The recommended
rate increases would increase County cost for 1999-00 by about $4,000 in total for the
approximately 680 positions covered in the dental insurance group. Funds are available
within the approved dental insurance budget for fiscal year 1999-00. This is the first rate
increase in dental insurance since 1993.
2000 Dental Insurance Rates
Depending on type of coverage, the rate increases effective January 1, 2000 are as follows:
Coverage Type Rate Increase Employees Enrolled
Employee Only 7.5% 311
Employee/Child(ren) 13.9% 72
Employee/Spouse 44.7% 97
Employee/Family 15.0% 136
2
Delta Dental has recommended different increase amounts for each coverage type. This
recommendation is based on actuarial analysis of the plan's benefits and utilization (current
and potential) of these benefits by the various groups.
This is the first increase in dental insurance rates in seven years; that is, since January 1,
1993. The rate increase results from several factors, including increasing costs for dental
services, increased utilization of the dental plan and an increase in the administrative fee
charged by Delta Dental from $1.50 to $1.65 per employee per month.
County Contribution for Employee Dental Insurance
Attached are the draft monthly dental insurance rates for 2000. This shows the total cost,
County cost and employee cost for each coverage type. In the past, the County has paid
the full cost of individual employee dental insurance coverage and has not made a
contribution for dependent coverage. The attached rates have been calculated in this same
manner.
Financial Impact: The estimated 1999-00 County cost of the increase is about $4,000
(January through June 2000). The estimated full year cost of the increase is about $8,000.
The Budget Director advises that the cost of the increase can be covered from funds
available within the approved dental insurance budget for 1999-00.
Recommendation(s): The Manager recommends the Board approve the attached dental
insurance rates effective January 1, 2000.
(K:\Dental\absdental.doc)
September 20, 1999
Attachment
Orange County
Monthly Dental Insurance Rates
Total Cost Paid by the
County Paid by the
Employee
Coverage Type Old New Old New Old New
Employee Only $12.84 $13.80 $12.84 $13.80 $0.00 $0.00
Employee/Children $33.02 $37.60 $12.84 $13.80 $20.18 $23.80
Employee/Spouse $23.32 $33.75 $12.84 $13.80 $10.48. $19.95
Employee/Family $41.64 $47.90 $12.84 $13.80 $28.80 $34.10
(K:\De nta1120-Rates. Doc)
September 19, 1999