Title
Resolution to Approve the City's Contract with Delta Dental Plan of Michigan, Inc., for Claims Administration Services for the City's Dental Plan through December 31, 2021 ($800,000 per year)
Memorandum
The attached Resolution authorizes the attached Delta Dental Service Contract through December 31, 2021, and authorizes related payments to Delta Dental Plan of Michigan, Inc. to administer the City's Dental Plan and pay associated costs of claims.
Public Act 106, requires the City to competitively bid our medical, dental and vision coverage every three years. Marsh & McLennan Agency, our healthcare advisor, conducts the bidding on our behalf and recommends a service provider. We completed this bidding process in the fall of 2019 for plan year 2020. Delta Dental remained the best option for dental claims processing. We did not go out to bid for this line of coverage for plan year 2021 due to Delta Dental's proven customer service, excellent networks, and the continuation of the current rates for 2021.
Budget/Fiscal Impact: The necessary funds were appropriated as part of the FY21 approved budget in the Risk Fund through June 30, 2021. Required funding for the portion of the contract term from July 1, 2021 through December 31, 2021 will be budgeted in the FY22 Risk Fund budget. The estimated annual cost for the calendar year of this employee benefit is $800,000 per year.
The City is in a current contract with Delta Dental through December 31, 2020. Employee labor contracts and the employee benefit plans establish the level of dental coverage for City employees. There is no change in the level of dental coverage with this renewal and payment authorization.
Staff
Prepared By: Jessica Hull, Employee Benefits Supervisor
Reviewed By: John Fournier, Interim Director of HR & Labor Relations
Approved By: Tom Crawford, City Administrator
Body
Whereas, The City provides dental benefits to City employees and their eligible de...
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