Item 4F
Approve a contract with MetLife to provide employee dental insurance benefits for Plan Year October 1, 2017 through September 30, 2018.
Item 4F
Madame Mayor and members of the City Council, this presentation will cover Item 4E on the August 2, 2015 City Council Agenda.
1
Purpose
Approve a contract with MetLife to provide employee dental insurance benefits for the Plan Year October 1, 2017 through September 30, 2018.
The purpose of this item to is to request City Council approval of a contract with MetLife 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.
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
Deliver on Our Focus Areas
Approving a dental contract with MetLife 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.
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
RFP
In May, the City issued an RFP for dental benefits and received responses from ten carriers.
Each proposal was reviewed based upon set criteria including the
experience and qualifications
of the carrier,
rates;
schedule of benefits;
provider network access/penetration; and
reporting, plan administration and ease of billing.
Following the initial review Aetna and Cigna
and MetLife were selected as finalists and invited to meet with the City.
5
Finalist Comparison
Staff recommendation: MetLife
After meeting with the finalists and analyzing plan options, staff recommends selecting MetLife as the provider for employee dental insurance benefits.
MetLife provides the city with
an overall rate reduction of 15.6% which equates to estimated annual savings of $20,725. In addition, the plan offered by MetLife is a richer plan and includes a two year rate guarantee.
6
Financial Considerations
Estimated cost of dental insurance premiums:
Funding for dental insurance will be included in the proposed FY 2018 budget.
The estimated city cost of dental insurance premiums is $104,621 annually.
The estimated annual decrease is 20,725.
Funding for the proposed dental insurance plan costs will be
included in the proposed budget for Fiscal Year 2017.
7
Staff Recommendation
Approve a contract with MetLife to provide employee dental benefits for the Plan Year October 1, 2017 to September 30, 2018.
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.
8
Questions:
Stacey Black 817-748-8063
9
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.