HomeMy WebLinkAbout13. 20-402 SEPTEMBER 22, 2020 20-402 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: RENEW DENTAL INSURANCE AGREEMENT WITH DELTA
DENTAL OF WISCONSIN
INITIATED BY: ADMINISTRATIVE SERVICES
WHEREAS, the City of Oshkosh evaluated its structure for Employee Dental
Insurance for 2021; and
WHEREAS, Delta Dental of Wisconsin offers the most advantageous Dental Plan
and TPA services to meet the City's requirements.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the proper City officials are hereby authorized to enter into and take those
steps necessary to implement an appropriate agreement with Delta Dental of Wisconsin
to utilize Delta Dental Wisconsin's Dental Plan and third party administrator services in
substantially the same form as the existing agreement and endorsements, any changes in
the execution copy being deemed approved by their signatures.
BE IT FURTHER RESOLVED that money for this purpose is hereby appropriated
from:
Acct. No. 601-0903-XXXX-XXXXX Internal Service Benefit Fund
Oshkosh
TO: Honorable Mayor and Members of the Common Council
FROM: John Fitzpatrick, Assistant City Manager/Director of Administrative Services
DATE: September 22, 2020
RE: Dental Insurance Agreement with Delta Dental of Wisconsin
BACKGROUND
As Council is aware, through your direction and as a matter of good practice, the City
regularly reviews our contract agreements and benefit structures in order to provide the
best benefits possible for our staff at the most cost effective level possible for our
taxpayers. With these thoughts in mind, and in consideration of the expiration of our
agreement with Delta Dental of Wisconsin at the end of 2020, city staff and USI
Insurance Services (formerly known as Associated Benefits Risk and Consulting) have
been taking the appropriate steps to establish a relationship with a provider for dental
benefits for 2021.
ANALYSIS
After evaluating current dental plan costs, the decision was made to conduct a
comprehensive review of the plan. City Staff and USI Insurance Services assessed our
existing structure and determined that the best option would be for the City to become
self -funded for dental insurance and continue to utilize Delta Dental of Wisconsin as the
third party administrator (TPA). The projected increase for dental services in 2021 is 0%.
This was also representative of the 0% increase discussed at Budget Workshop #2. Delta
Dental agreement/application is for 2021 only.
FISCAL IMPACT
Staff is estimating a zero percent (0%) increase for the dental program in 2021.
Although the city employee focus group on health insurance, staff and City Manager
Rohloff are pleased with the outcome of this year's process, all parties understand that it
will be necessary to evaluate our plan for 2022 due to the one year agreement in order to
consider what changes may be necessary in order to preserve the best benefits possible
for our staff at the most cost effective level possible for our taxpayers moving forward.
RECOMMENDATION
Based on the analysis conducted, staff recommends approval of the renewal with the
aforementioned employee dental insurance plan and TPA services with Delta Dental of
Wisconsin.
Please let me know if you have any questions regarding this matter and thank you as
always for your assistance and support.
Respectfully Submitted,
John M. Fitzpatrick
Assistant City Manager /
Director of Administrative Services
Attachments: USI Confirmation Email
cc: Michelle Behnke, HR Manager
Approved:
Mark A. Rohloff
City Manager
2
Behnke, Michelle
From: Lana Hitner <Lana.Hitner@usi.com>
Sent: Wednesday, September 16, 2020 3:09 PM
To: Behnke, Michelle
Cc: Jan Stage; Donna Labisch
Subject: City of Oshkosh - Dental Renewal
The initial renewal from Delta for the fully -insured plan was 0%. Based on the analysis, USI is recommending the City
move to a self -funded arrangement with Delta Dental for the dental plan. Past dental claims paid for the last 24 months
have been under the premiums charged, so we believe this to be a positive financial move assuming the City accepts the
risk of self -funding. Since the dental plan has an annual limit, the costs are somewhat predictable and the risk is limited.
This email is to confirm that Delta Dental will offer services as a TPA in the transition of the City's dental plan from fully -
insured to self -funded. The City will pay a fixed administration fee of $4.45 per employee per month and the cost of the
dental claims paid by Delta.
Lana
New contact information as of August 24t, my new e-mail will be lana.hitnerCa)usi.com and my direct dial phone will be
920-481-2047. Please update your records.
LANA MTNER
Account Executive
USI Insurance Services
920.481.2047 1 c: 920.470.9257
lana.hitner@usi.com j www.usi.com
USI
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