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��7L-V-i� Request for Council Action Date: November 27,2000 Item Number: C-9 Manager Approval Agenda Section ! � Item Description: Contract for Employee Dental Insurance with Delta Dental Back�round• Consent Agenda The City of Roseville contract for dental insurance will expire on December 31, 2000 with Delta Dental. Pursuant to Minnesota State Statute, city-provided group insurance to organizations of more than 25 employees require a written Request For Proposal (RFP) and public notice of 21 days prior to the final response. As such, the City published a legal notice on October 24 calling for insurance providers to submit proposals to provide health and dental insurance coverage for employees. The responses were due November 14, 2000. City staff sent copies of the RFP to a number of providers and received two proposals for dental insurance coverage from Delta Dental and HealthPartners. Copies of the RFP are a�ailable in the Administration Department. The City Council reviewed the Delta Dental one-year insurance proposal at the November 20, 2000 Work Session. At that meeting the City Council recommended that staff bring the proposal to the regular meeting of November 27, 2000 for formal action. Policv Imqlications: City employees voluntarily enroll in dental insurance. Currently, 55 employees carry single coverage and 46 employees carry family coverage. Two companies responded to the Dental RFP and Delta Dental delivered a proposal with a lower costthanHealthPartners. DeltaPreferred Dental Plans (renewal rates reflect current benefit levels): 1. 1999/2000 Current Premiums a. Single $19.50 b. Family $51.15 2. 2001 Proposed Premiums a. Single $20.85 b. Family $54.75 The proposed Del&Preferred Dental Plan reflects a 6.5 % increase in premium costs. It is voluntary because the employee assumes the total cost with the exception of single coverage. The City assumes 100% of single health coverage premium plus $28.50 and one half of any family health coverage premium insurance increase. Employees that enroll in the single dental coverage may use the $28.50 added to the City contribution for single health insurance to cover the dental premium cost. Financial Implications: The City could potentially pay up to $14,000 based upon this information if 55 employees carry single coverage and apply the $20.85 added to the City contribution for single health insurance. City employees assume all other dental premium costs.