HomeMy WebLinkAboutAgenda Statement 1986/09/10 Item 7 COUNCIL AGENDA STATEMENT
Item 7
Meeting Date 9/10/86
ITEM TITLE: Resolution - Approving Agreements to implement two
prepaid dental plans for City employees and their families
from Blue Cross (Dental Net) and Delta Dental (PMI Dental ) and
authorizing the Mayor to execute in behalf of the City
SUBMITTED BY: Acting Director of Personnel e 3
REVIEWED BY: City Manager (4/5ths Vote: Yes No X )
During contract negotiations this year the Police Officers Association (POA)
and the City agreed that a dental plan would be made available, on a voluntary
basis, to members of the POA. After staff considered the various types of
dental programs available, it was concluded that a voluntary plan should be
made available to all City employees. Consequently, individuals with
sufficient "flex plan" monies can purchase coverage through their "flex
plan." Individuals with no "flex plan ' or insufficient "flex plan" monies can
purchase the coverage through payroll deductions.
The Health Insurance Committee, consisting of management staff and
representatives of each bargaining unit, studied and evaluated five proposals
from the following companies: Safeguard, Blue Cross, Delta Dental , Standard
Insurance Company and The Prudential . After Committee and staff review the
joint voluntary dental plans:the
Dental miNete from Blue Cross that the P.M.I. Dental tfrom
Y
Delta Dental .
RECOMMENDATION: That City Council authorize the Mayor to sign the two
attached Agreements.
BOARDS/COMMISSIONS RECOMMENDATION: None.
DISCUSSION:
Dental Plans come in two different forms: pre-paid plans or indemnity
(fee-for-service) plans.
Pre-paid plans offer individuals a full range of dental services. Generally,
preventive dental services and simple fillings are provided at no cost to
insureds. Other dental services require employee co-payments. One must
select a dentist from among a panel of dentists. Pre-paid dental plans are
usually inexpensive and can be offered on a voluntary basis.
In contrast, indemnity dental plans are similar to indemnity health plans in
that they contain deductibles, percentage co-payments and annual maximum
dollar amounts per insured. One can select any dentist. Indemnity dental
plans are usually more expensive than pre-paid dental plans and always require
a minimum participation level of 75% of eligible employees to guard against
adverse selection.
Page 2, Item 7
Meeting Date 9/10/86
'Of the five proposals studied, the indemnity dental plans proposed by Standard
Insurance Co. and The Prudential were rejected by staff and the Committee
because of the minimum participation requirements.
The three remaining pre-paid plans were carefully analyzed. Due to the
sketchy information available about the Safeguard plan and the timeliness with
which our recommendation had to be made for implementation on October 1 , 1986,
it also was rejected.
The consensus of the Committee was that the cost and benefits between the two
remaining pre-paid plans (Blue Cross and Delta Dental ) are comparable and
that the major difference between the two plans is the panel of dentists. By
offering two pre-paid plans, employees will have an opportunity to select a
plan that best suits their dental needs and utilizes a preferred dentist.
Therefore, the Health Insurance Committee and staff recommend that the two
pre-paid plans offered by Blue Cross and Delta Dental be made available on a
city-wide basis.
All employees will have Open Enrollment opportunity Period from September plan of their
choice during P
September 29, 1986.
FISCAL IMPACT: None
WPC 0546K
V
"-"
•y the City Council of
Chula Vista, California
Dated / ii
Alms