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i <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 17, 2000 <br />Action Agenda <br />Item No. J <br />SUBJECT: Em la ee Dental Insurance for 2001 <br />DEPARTMENT: Personnel PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Draft Monthly Dental Insurance Rates <br />INFORMATION CONTACT: <br />Elaine Holmes, Personnel Director <br />Extension 2550 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To consider an increase in rates for employee dental insurance effective <br />January 1, 2001. <br />BACKGROUND: The County's employee dental insurance program is aself-insured plan. <br />Delta Dental is the plan administrator. Delta Dental has recommended new County rates for <br />the 2001 calendar year (beginning January 1, 2001). <br />In summary, Delta Dental recommends the County increase its rates. The recommended rates <br />would increase County cost for 2000-01 by about $28,000 in total for the approximately 720 <br />positions covered in the dental insurance group. Funds are available within the approved <br />dental insurance budget for fiscal year 2000-01. The County increased dental rates in 2000 and <br />the last increase prior to that was effective January 1, 1994. <br />2001 Dental Insurance Rates <br />The recommended rates for 2001 represent an increase in monthly County cost per employee <br />of $5.58 and an increase in cost to the employee for dependent coverage of $8.08 to $13.80 <br />per month depending on coverage selected. This is an approximate 40 percent increase. <br />Since the County's dental insurance is self insured, the County's dental insurance costs are <br />made up the Delta Dental administrative fee and the direct cost for dental claims. <br />• The Delta Dental administrative fee is not increasing. The administrative fee remains at <br />$1.65 per employee per month or a total cost of about $12,500 each year for all employees. <br />• The approximate 40 percent increase arises from the direct cost of claims: This results from <br />several factors including increases in dental insurance costs already experienced, projected <br />