Item 4H
Contract renewal with United Healthcare to provide employee dental benefits for plan year October 1, 2015 to September 30, 2016.
4H
Madame Mayor and members of the City Council, this presentation will cover Item 4H on the August 4, 2015 City Council Agenda.
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Item 4G
Approve a contract renewal with United Healthcare to provide employee dental benefits for Plan Year October 1, 2015 to September 30, 2016.
The purpose of this item to is to request City Council approval of a contract renewal with United Healthcare to provide employee dental benefits for Plan Year October 1, 2015 through
September 30, 2016.
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Critical Business Outcomes
CBO1 - Continue to implement Southlake 2030 Plan by focusing on short-term initiatives.
CBO2 - Become an employer of choice by developing a plan to recruit,
develop and retain employees committed to excellence.
CBO3 - Develop long-term strategies to address future financial uncertainties and challenges.
CBO4 - Improve mobility by proactively
completing traffic analysis of key areas.
CBO5 -Optimize resources through collaboration and partnerships to reduce costs and add service value.
The City of Southlake provides municipal services that support the highest quality of life for our residents, businesses, and visitors. We do this by being an exemplary model of balancing
efficiency, fiscal responsibility, transparency, and sustainability.
Deliver on Our Focus Areas
Performance
Management &
Service Delivery
C1 Achieve the highest standards of safety & security
C2 Provide travel convenience within City & region
C3 Provide attractive & unique spaces for enjoyment of personal interests
C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment
C5 Promote opportunities for partnerships & volunteer involvement
Serve our Customers
Manage the Business
B1 Achieve best-in-class status in all City disciplines
B2 Collaborate with select partners to implement service solutions
B3 Enhance resident quality of life & business vitality through tourism
B4 Provide high quality services through sustainable business practices
B5 Enhance service delivery through continual process improvement
B6 Optimize use of technology
Provide Financial Stewardship
Promote Learning and Growth
F1 Adhere to financial management principles & budget
F2 Invest to provide & maintain high quality public assets
F3 Achieve fiscal wellness standards
F4 Establish & maintain effective internal controls
L1 Ensure our people understand the strategy & how they contribute to it
L2 Enhance leadership capabilities to deliver results
L3 Attract, develop & retain a skilled workforce
L4 Recognize & reward high performers
L5 Empower informed decision-making at all levels in the organization
C6 Enhance the sense of
community by providing excellent customer service and citizen engagement opportunities
L6 Foster positive employee engagement
City of Southlake Strategy Map
Approving the contract renewal with United Healthcare links to the City’s strategy map relative to the focus area of [CLICK] Performance Management and Service Delivery and specifically
to the corporate business objective of [CLICK] Attract, develop, and retain a skilled workforce. It also supports the critical business outcome [CLICK] to be an employer of choice.
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Background
United Healthcare
Bid insurance in 2010
2 plans: PPO and DHMO
The City’s current dental insurance provider is United Healthcare. United Healthcare has been the City’s dental provider since October 1, 2010 and dental insurance was last competitively
bid in 2010. The dental plan is a fully insured plan. The City pays a monthly per employee premium to United Healthcare and United assumes the risk and accepts the financial responsibility
for dental claims and administrative costs.
Employees are offered two plan options: a traditional PPO plan and a dental HMO plan. This provides employees with an opportunity to choose
a plan that best meets their own unique needs.
The City currently pays the entire premium for employee only dental coverage and the employee pays the entire dependent cost.
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Renewal
For new plan year, United Healthcare has proposed no rate increase and no plan design changes to the DPPO plan.
United has also proposed no rate increase for the dental HMO plan,
however, the City’s current plan design will no longer be offered by United. Therefore, they have recommended dental HMO plan. The recommended plan includes minor plan improvements.
In
addition, UHC has offered a 24 month rate guarantee for both plans.
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Financial Considerations
Estimated cost of dental insurance premiums:
Funding for dental insurance will be included in the proposed FY 2016 budget.
The estimated cost of dental insurance premiums is $18,320 per month, or $219,843 annually (combined City and employee premium contributions). There is no annual estimated premium increase
in the City’s portion of dental insurance FY 2016.
Funding for the proposed dental insurance plan costs will be included in the proposed budget for Fiscal Year 2016.
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Staff Recommendation
Approve a contract renewal with United Healthcare to provide employee dental benefits for Plan Year October 1, 2015 to September 30, 2016.
Staff recommends City Council Approve a contract renewal with United Healthcare to provide employee dental benefits for Plan Year October 1, 2015 to September 30, 2016.
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Questions:
Stacey Black 817-748-8063
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If you have any questions regarding this item, please contact Director of Human Resources Stacey Black at 817-748-8063. Thank you for your attention.