Title
Human Resources Department, Risk Management Division, recommending the Chairman be authorized to sign Amendment 11 to Agreement Group 353 with Delta Dental Plan of California in an amount not to exceed $3,700,000 for the term July 1, 2008 through June 30, 2010 for administration of said Plan. (Risk Management Internal Service Fund)
RECOMMENDED ACTION: Approve.
Body
BUDGET SUMMARY:
Total Estimated Cost $3,700,000
Funding
Budgeted $3,700,000
New Funding $
Savings $
Other $
Total Funding Available $3,700,000
Change To Net County Cost $0
Fiscal Impact/Change to Net County Cost:
These expenditures are budgeted within the Risk Management internal service fund, health benefits sub-fund. Revenue is provided by Board-approved internal charges along with charges to retirees and outside agencies on behalf of participants in the County's self-funded dental insurance program. With approximately 1850 employees and retirees projected to be enrolled next fiscal year, the annual administrative cost of this contract to the Risk Management Fund will be approximately $120,000; the annual self-insured claims costs are estimated to be $1.7 million. This contract is for a two-year term with a total estimated cost of $3.7 million.
Reason for Recommendation:
The County obtains Delta Dental's services, both claims administration and Delta's network of Preferred Dentists, by means of participation in a multi-County purchasing pool sponsored by the CSAC Excess Insurance Authority. This amendment #11 approves a compensation adjustment from $5.31 per employee per month (PEPM) to $5.68 PEPM with a two year rate guarantee. During the FY 08/09 term of this contract we anticipate approximately $1.7 million will be paid out on our behalf by Delta Dental in self-insured claims, whereas the administrative services provided by this contract will cost approximately $120,000.
Pursuant to Board of Supervisors Pol...
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