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Home My WebLink About5.e. Dental Insurance Recommendation CnV ], P.O. BOX 510 ✓Zl� 0 2875-145TH ST. W. osernoun� ROSEMOUNT MINNESOTA 55068 612-423-4411 T0: Mayor Napper Council Members Willcox, Wippermann, Oxborough, Rlassen FROM: Susan M. Johnson, City Clerk � DATE: Februarp 15, 1990 ITEM # �� RE: Dental Insurance Recommendation In the fall of 1989, the city received dental insurance proposals from Blue Crosa & Blue Shield of Minnesota and from Delta Dental. Citp Administrator Stephan Jilk preaented a preliminary proposal for dental insurance when council reviewed the 1990 operating budget and 1990 benefit proposals for non-union employees. When Council approved the 1990 salarp and benefit proposals for non-union staff in December, 1989, Council authorized ataff to continue gathering information for a dental program. I would like to present for your review and consideration a dental insurance program for non-union city employees. In our salarq/benefits survey data from DCA Stanten of the SS cities surveyed in 1989 in the Metro (seven county area) , 43 had dental benefits. Four o£ those cities paid less than 100x of single coverage and those four cities paid an average of 90x of the single coverage. The average papment by cities for this benefit in 1989 was $14. 45 per employee. Since the proposals received from B1ne Crosa & Blue Shield snd De1ta Dental were so verp close in costs and benefits, we decided to allow staff to hear presentat3ons from both of the companies. In January, theae presentation.9were given. Following the preaentat3on, a ahort survey was given to non-union staff asking them to indicate their preference of companies based upon the cost and benefits presented by both insurance companies. A little more than half of the non-union employees preferred Delta Dental for various reasons. Attached for qour review is a copy of Delta' s proposal. The citp' s dental plan would be Option I with a $25 deductible. This is highlighted for pour reference. We are requesting your approval fvr the establishment of a dental program for non-union full-time employees beginaing March 1 , • - 1990. Delta' s proposal requires 100Z employee enrollment �,�ith the city paying 100z of the employee' s cost. The proposal further requires 7$� dependent coverage participation. In preparation of this recommendation to you, De1ta Dental enrollment cards were furn�.shed to a11 non-union fu11-time emplopees. Eleven emgloyees have opted for familp coverage, and the rest have either waived dependent coverage or will have single coverage. . �2 ■ Delta Select�"Options Deita Select�"offers the four dentai plan options listed below. s�`c&�`�e e�►�Ges ey�`°�ai\Je t�°�s�e�� et`cS o��\ o�1o\e ��a9 QceJe� �s`°� �a�°�� QtoSti�Pa�J Qcoytr p�r°oQ��° peaJ _; Option I 100% 80� 50% 5096 50% 50% �2�75 Option il 100% 80% 50% 50°/a 50% 50% $50/150 Option iil 80% 80% 50% 50% 50% 50% $25/75 Option IV 80% 80% 50% 50�0 50°k 50°!0 $50/i 50 "The first dollar figure indicates the individual annual deductible.The second figure indicates the annual maximum deductible pe�family unit. $2�or $50 Individua!deductible per�rson per.c�yera�.ye,ara�'' $T�or $150 Nlaxirnum deduc#ible per family unit per covera�e yea�r> : C�u�s�attu�t� ��. :+��:�'ev�- , ' � $i,25t'� �irtax�mum amount pajrable by Delta�r person per caverage}�e�r. There is a $500 lifetime maximum payable by Delta per person for periodontics. $1,000 Separate lifetime benefit maximum on orthodontics. ■ Underwriting Guidelines The employer must pay 100°k of the program's cost for employees. If dependent coverage is affered, at least 75°!0 of the dependents must participate. If dependent coverage is not selected initially by an employee, this option will not be available again. Eligible employees are all employees working 30 hours or more per week and have completed the employer's probationary employment period. Coverage for new employees becomes effecYnre the first day of the month following the probationary period. ■ Rates This dental program has pre-established rates based on the combined experience of groups w�th fewer than 100 employees. By combining the experience of each individual group into one large group, the risk is spread over a larger population — allowing Delta to offer affordable dental praa�rams. The dental programs are subject to rate changes at renewal time. This description is subject to the terms and underwriting guidelines of the Group Dental Confiract. �7d•C�8/88) q f- ■ Delta Dental's Advantages Employers: Employees: ■ Qualiry and cost control through full-time claim ■ Out-of-pocket expenses are limited. Participating review by consultants. No funding of dentists will not collect any unapproved fee from unnecessary treatment. the patient. ■ Flexibility to choose a dental program that meets ■ Freedom to choose any dentist, however, if a objectives and budget limitations. nonparticipating dentist is used,out-of-pocket ■ Easy employee enrollment and simple expenses may increase. monthly billings. ■ Estimates show the employee's share of major ■ No handling of claim forms. treatment expenses prior to the work being done. ■ Educational materials are available to introduce • Claim forms are already in dental offices and are the dental program to employees. submitted directly i �Delta by the dentist. ■ Delta is easy to contact—headquartered ■ Answers to questions are only a phone call in Minnesota. away. Delta is a local company. ■ The Delta Dental Difference When examining a group dental program for your organization,at first glance one program may resemble another. Close examination, however,shows that Delta Dental offers a unique combination of advantages; advantages that really matter. ■ Delta Dental is a nonprofit organization that has participation agreements with 96°!0 of the state's dentists. ■ Cost containment features keep the program's cost stable and protect the group from funding unnecessary treatment. ■ Participating dentists agree to certain responsibilities that provide your employees with protection based on the UCR concept. Patients don't end up with unexpected expenses. ■ Dentist fees that are higher than the Usual or Customary amounts will not be collected from patients or Delta. ■ A professional review staff audits claims and prestatements to determine if proposed treatment is crnered by the contract,and secondly to make sure that the treatment meets accepted standards. ■ Extensive computer screening checks patient treatment history,eligibiliry and coordinates benefits between carriers.