Loading...
Item 4E Contract renewal with United Healthcare to provide employee dental benefits for plan year October 1, 2016 to September 30, 2017. 4E Madame Mayor and members of the City Council, this presentation will cover Item 4E on the August 2, 2015 City Council Agenda. 1 Item 4E Approve a contract renewal with United Healthcare to provide employee dental benefits for Plan Year October 1, 2016 to September 30, 2017. 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, 2016 through September 30, 2017. 2 City of Southlake Strategy Map 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. 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 Deliver on Our Focus Areas Approving the contract with United Healthcare links to the City’s strategy map relative to the focus area of Performance Management and Service Delivery and specifically to the corporate business objective of Attract, develop, and retain a skilled workforce. It also ties to CBO2 – Become an employer of choice. 3 Background 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 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. 4 Renewal The City is currently in the 2nd year of a 2 year rate guarantee. As such, United Healthcare has proposed no rate increases and no plan design changes for the new plan year. 5 Financial Considerations Estimated cost of dental insurance premiums: Funding for dental insurance will be included in the proposed FY 2017 budget. The estimated cost of dental insurance premiums is $219,843 annually (combined City and employee premium contributions). The City’s cost is $127,724. There is no annual estimated premium increase in the City’s portion of dental insurance FY 2017.   Funding for the proposed dental insurance plan costs will be included in the proposed budget for Fiscal Year 2017. 6 Staff Recommendation Approve a contract renewal with United Healthcare to provide employee dental benefits for Plan Year October 1, 2016 to September 30, 2017. 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. 7 Questions: Stacey Black 817-748-8063 8 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.