City of San Antonio - File #: 17-4788

• File #: 17-4788
• Type: Misc - Professional Services Agreements
• In control: City Council A Session
• On agenda: 9/14/2017
• Posting Language: An Ordinance authorizing the execution of two contracts with Delta Dental Insurance Company/Alpha Dental Program, Inc. to provide administration of the City's Dental Preferred Provider Organization Plan and Dental Health Maintenance Organization Plan for the City’s retired and civilian, full-time, active employees, and their eligible dependents in an estimated annual amount of $2,300,000.00, for a term beginning January 1, 2018 and ending December 31, 2020, with the option to renew for two additional one year periods, subject to and contingent upon funding by City Council. [Ben Gorzell, Chief Financial Officer; Lori Steward, Director, Human Resources]
• Indexes: Employee Benefits

Date	Ver.	Action By	Action	Result
9/14/2017	1	City Council A Session	adopted	Pass

DEPARTMENT: Human Resources


DEPARTMENT HEAD: Lori Steward, Human Resources Director


COUNCIL DISTRICTS IMPACTED: City-wide


SUBJECT:

Voluntary Dental Insurance and Third Party Administrative Services


SUMMARY:

This ordinance authorizes the City Manager or her designee to execute a contract with Delta Dental Insurance Company/Alpha Dental Program, Inc. to provide voluntary dental insurance for the City's civilian, full-time, active employees, and their eligible dependents as a flexible option within their benefits plan. Retired employees may also voluntarily participate in the dental program with an estimated amount of $2.3 million per year. The term of this contract is three years, beginning January 1, 2018 and ending December 31, 2020, with the option to renew for two additional one year periods, subject to and contingent upon funding by City Council.


BACKGROUND INFORMATION:

Voluntary dental benefits are offered to the City's civilian, full-time, active employees and their eligible dependents as a flexible option within their benefits plan. Active civilian employees have the choice between two options; self-funded dental PPO and fully-funded dental HMO. There are 6,884 eligible civilian employees. Currently, retired employees of the City may choose to enroll in the dental HMO plan at time of retirement. There are 1,500 retired employees eligible to participate in the voluntary dental program.

For the PPO plan, enrolled employees pay a monthly premium which is determined by the City each year and is used to reimburse the City for administration fee and cost of claims. Active employees may also participate in a fully-insured dental HMO plan. The participating employees pay the full cost of the premium. Retired employees are eligible to participate in the DHMO plan and are responsible for the entire premium. Premium is set by negotiation with the vendor during the RFP process.

The contract for dental services will end on December 31, 2017. Th...