Year 2010 temporary budget to make available the ... - Jersey City

City of Jersey City
Dental Program - 1'010 Policy Year
Submitted by Robert D. Parisi / RD Parisi Associates, Inc.
The Delta Dental dental program is about to conclude the second policy year servicing the City
of Jersey City's employee dental program...as the Utilization Report demonstrated during the
course ofthis second policy year, the loss ratio and utilization of this program has run
consistently high. These reports have been provided routinely during the policy year and copies
can be provided upon request. On average, the loss ratio for the Open Program was 117%;
meaning utilization was 17% higher than actual premium paid on average. However, Delta
Dentals renewal proposal for the Open Program is presented at 15%; 2% less than utilization.
The Closed. Program is a captitated program and is not based on overall utilization. The renewal
for the Closed Program is presented at a 2.9% increase over 2009 rates. These combined
programs, based on overall enrollment, leave the Delta Dental 2010 renewal at 10.69% over
2009 rates or $202,782.00 in actual dollars. This infonnation is outlned in the 2009 Year End
Report previously submitted. A copy is attached.
Given the utÚization as well as the unique nature of the Closed Program, the expectations for
strong carrier competition were low. Upon receiving full renewal infonnation from Delta Dental
a full marketing of the program was conducted. The Request for Proposal (RP) was prepared
under the direction ofMicn.aline Yurcik and supporting documentation related to the dental
program was compiled and provided to all applicable and licensed dental insurance cariers in
the State of New Jersey.
Not surprisingly, the response from the cariers was less than overwhelming. Below is a
sumar:
Aetna Healthcare - Provided Uncompetitive Proposal
Declined to Quote (DTQ)
Horizon BCBSNJ - Uncompetitive Rates
Guardian Life - Uncompetitive Rates
Cigna Healthcare - Uncompetitive Rates
Principal Financial - Uncompetitive Rates
MetLife - Un competitive Rates
Standard Inurance - Could not match Plan Design / Uncompetitive Rates
Lincoln Financial - Uncompetitive Rates
United Concordia - Could not match Plan Design
Sun Life Financial - Uncompetitive Rates