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trend in dental insurance costs through 2001, increased utilization of the plan and <br />improvements in the plan over the years such as the bringing the table of allowances for <br />dental services up to the Research Triangle average. The total cost of claims in the dental <br />insurance fund presently is about $215,000 annually. <br />An additional factor impacting the need for the increase is the fact that plan reserves are no <br />longer available to offset increases. 'In the past, the County has been able to rely on plan <br />reserves accumulated in earlier years to offset cost increases. Those reserves now have been <br />drawn dawn. To maintain the self-insurance fund, it is necessary to implement the rate <br />increases proposed. <br />County Contribution for Employee Dental Insurance <br />Attached are the draft monthly dental insurance rates for 2001. This shows the total cost, <br />County cost and employee cost for each coverage type. The rate for each coverage type has <br />been increased about 40 percent. In the past the County has paid the full cast of individual <br />employee dental insurance coverage and has not made a contribution for dependent coverage. <br />The attached rates have been calculated in this same manner. <br />FINANCIAL IMPACT: The estimated 2000-01 County cost of the increase is about $28,000 <br />(December through June). The Budget Director advises that the cost of the increase can be <br />covered from funds available within the approved dental insurance budget for 2000-01. The <br />approved dental insurance budget for 2000-01 was $128,529, including an increase of $29,626. <br />RECOMMENDATION(S~: The Manager recommends that the Board approve the attached <br />dental insurance rates effective January 1, 2001. <br />