Agenda - 10-03-2006-5f - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 3, 2006 Action Agenda Item No. ~-- SUBJECT: Employee Dental Insurance for 2007 DEPARTMENT: Personnel PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Draft Monthly Dental Insurance Rates INFORMATION CONTACT: Tyrone Jackson, Personnel Director (919) 245-2550 Michael Edmonds, Benefits Manager (919) 245-2558 PURPOSE: To consider an increase in employee dental insurance rates effective January 1, 2007. BACKGROUND: The County's employee dental insurance program is aself-insured plan. Delta Dental is the plan administrator. As part of the annual plan evaluation process, the Personnel Department, in conjunction with Delta Dental, evaluates plan costs and projected plan revenue. After analysis of Orange County dental claims costs; and consulting ~{vith Delta Dental regarding administrative costs, staff recommends a 10 percent increase in dental insurance rates for the 2007 calendar year effective January 1, 2007. The recommended rate increase represents about a $13,000 increase in County cost for 2006- 07 for the approximately 839 positions covered in the dental insurance group. Funds are available within the approved dental insurance budget for fiscal year 2006-07; Over the past 10 years, the County has increased dental .rates in 2000, 2001, and 2006. The last increase prior to that was in 1994. 2007 Dental Insurance Rates The recommended 10 percent rate increase arises from several factors including increases in dental insurance costs, updates to the table of allowances for dental procedures during the 2006 plan year to maintain benefits in line with market rates, increased u,se of the plan, and the fact that plan reserves are no longer available to offset increases. In the past, the County has been able to use plan reserves accumulated in earlier years to offset cost increases. Those reserves now have been drawn down to the point a rate increase is necessary. To maintain the self-insurance fund, it is necessary to implement the rate increase .proposed.