HomeMy WebLinkAboutAGENDA REPORT 1990 0620 CC REG ITEM 08NBERNARDO M. PEREZ
Mayor
SCOTT MONTGOMERY
Mayor Pro Tern
ELOISE BROWN
Councilmember
CLINT HARPER, Ph.D.
Councilmember
PAUL W. LAWRASON, Jr.
Councilmember
LILLIAN KELLERMAN
City Clerk
MOORPARK
MOORPARK, CAUFORN
City Council Meeting
of _.(� Z 199
Mo
VA I
TO: HONORABLE CITY COUNCIL
FROM: RICHARD HARE, DEPUTY CITY MANAG
DATE: JUNE 15, 1990
SUBJECT: EMPLOYEE AND DEPENDENT DENTAL COVERAGE
BACKGROUND:
ITEMB�
STEVEN KUENY
City Manager
CHERYL J.KANE
City Attorney
PATRICK RICHARDS, A.I.C.P.
Director of
Community Development
R. DENNIS DELZEIT
City Engineer
JOHN V. GILLESPIE
Chief of Police
RICHARD T. HARE
City Treasurer
The current dental carrier for the City of Moorpark employee and
dependent coverage is Ameritas Life Insurance Corporation. This
company was formerly Bankers Life Nebraska. The current dental
insurance plan contains a preferred provider option and carries a
$50.00 per person deductible. There is no orthodontic benefit in
this plan, however, the deductible amount is waived under this plan
for preventive services such as examinations, x -rays, and
fluorides.
Ameritas Option 1
In order to maintain the same preferred provider plan option the
renewal rate would be $24.50 for employee only and $57.30 rate for
one dependent or family coverage. This represents a 19% and 16%
increase respectively.
Ameritas Option 2
Another option available to the City would increase the employee
benefit further by increasing the amount paid on claims when using
a preferred provider. This option would cost $24.99 for employee
coverage and $58.45 for dependent coverage. This represents a 22%
and 18% increase in rates. The benefit would be increased 10% for
employee out of pocket expenses.
Ameritas Option 3
If the preferred provider option is dropped from the plan the rates
would be $23.70 and $56.50 which represents a 16% increase in
rates.
799 Moorpark Avenue Moorpark, California 93021
_- (805) 529 -6864
Authority Plan
Rates have been obtained from the Southern California Insurance
Authority which offers two program options. The employee has the
option to select either a prepaid program with no deductible which
requires the use of the preferred provider and has an established
co- payment for specific major services or the employee can
participate in the traditional fee for service program similar to
the current Ameritas plan.
The rates for the fee for service plan are $20.49 for employee,
$35.82 for one dependent and a family rate of $51.19. This would
be comparable to the Ameritas Option 3 rate which is absent a
preferred provider option and it has an annual expense cap of
$1,000 per individual versus the Ameritas limit of $1,500. The
Authority plan is 14% less for employee coverage and 9% less for
family coverage than the Ameritas rates. This is a deposit payment
and amounts not spent would be returned to the City. If costs of
the program exceeded deposits the costs would be pooled and rates
adjusted to meet demands.
The Authority plan also offers orthodontia as an added benefit
which requires a deposit of $4.40 for all employees. The
orthodontia benefit has a $50.00 deductible, 50% co -pay and a
lifetime limit of $1,000.
As previously mentioned the Authority plan does have a prepaid
option which is not treated as a deposit. A very limited number of
providers agree to accept a prepayment for services. The employee
is no longer liable for a deductible and there are no charges for
basic services. Other major services require an employee co-
payment per an agreed to schedule of charges. The rates for this
option are $9.41 for the employee, $16.45 to add one dependent and
a family rate of $23.51.
CONCLUSION•
Clearly, the renewal rates presented by Ameritas are a significant
increase. The Authority plan has the potential for lowering the
out of pocket expenses of our employees and costing the City of
Moorpark less for providing an improved benefit program which could
include orthodontics if the City Council should decide in the
future to offer the additional benefit.
RECOMMENDATION•
Final recommendation shall be presented at the June 20, 1990
regular meeting after review and comparison of the dental plans
with employees.