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, 2024 ($713,834 in 2022, $785,217 in 2023, and $866,276 in 2024)
Memorandum
The attached Resolution authorizes the attached Delta Dental Service Contract through December 31, 2024, 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 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 2022 due to Delta Dental's proven customer service, excellent networks, and the continuation of the current rates for 2022. The City will competitively bid this dental plan for the 2023 plan year to stay in compliance with Public Act 106.
Budget/Fiscal Impact: The necessary funds were appropriated as part of the FY22 approved budget in the Risk Fund through June 30, 2022. Required funding for the portion of the contract term from July 1, 2022 through June 30, 2023 will be budgeted in the FY23 Risk Fund budget. Required funding for the portion of the contract term from July 1, 2023 through June 30, 2024 will be budgeted in the FY24 Risk Fund budget. Required funding for the portion of the contract term from July 1, 2024 through December 31, 2024 will be budgeted in the FY25 Risk Fund budget. The estimated annual cost for the calendar years of this employee benefit is $713,834 in 2022, $785,217 in 2023, and $866,276 in 2024.
The City is in a current contract with Delta Dental through December 31, 2021. Employee labor contracts and the employee benefit plans e...
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