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2 <br />Delta Dental has recommended different increase amounts for each coverage type. This <br />recommendation is based on actuarial analysis of the plan's benefits and utilization (current <br />and potential) of these benefits by the various groups. <br />This is the first increase in dental insurance rates in seven years; that is, since January 1, <br />1993. The rate increase results from several factors, including increasing costs for dental <br />services, increased utilization of the dental plan and an increase in the administrative fee <br />charged by Delta Dental from $1.50 to $1.65 per employee per month. <br />County Contribution for Employee Dental Insurance <br />Attached are the draft monthly dental insurance rates for 2000. This shows the total cost, <br />County cost and employee cost for each coverage type. In the past, the County has paid <br />the full cost of individual employee dental insurance coverage and has not made a <br />contribution for dependent coverage. The attached rates have been calculated in this same <br />manner. <br />Financial Impact: The estimated 1999-00 County cost of the increase is about $4,000 <br />(January through June 2000). The estimated full year cost of the increase is about $8,000. <br />The Budget Director advises that the cost of the increase can be covered from funds <br />available within the approved dental insurance budget for 1999-00. <br />Recommendation(s): The Manager recommends the Board approve the attached dental <br />insurance rates effective January 1, 2000. <br />(K:\Dental\absdental.doc) <br />September 20, 1999 <br />