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

A summary of Aetna's proposal rates is enclosed with this :ieport. Originally, though specifically
directed in the RFP, Aetna was unwiling to provide a Composite Rate for their proposal and
submitted Tiered rates making it nearly impossible to properly compare the program costs.
. Eventually, they provided a Composite Rate for the three Active employee programs but weré
undetermined as to whether or not they would agree to routinely bil the City and reserved that
decision to at such time they were awarded the contract. Though the proposed Composite Rate
for the ClosedProgram is lower, the rates for the Open Plan are significantly higher and given
the overall enrollment of City employees, it makes Aetna's proposal roughly $90,000.00 more
expensive than the Delta Dental renewaL. Additionally, Aetna's proposed rates for the Retiree
Dental Program are higher than Delta Dental's renewal rates. Below is a sumary of the two
Retiree Dental Program rates for 2010.
Retiree Dental Program / Matches Open Plan with $ I ,300.00 max
Delta Renewal Aetna
1P
2P
3P
$39.89
$73.81
$119.63
Employee:
. Parent/Child:
Husband/ife:
Family:
$41.80
$94.06
$83.60
$135.86
The Retirees curently fund this program in full so there would be no cost to the City under either
carier. However, it is reasonable to believe that it is in tie City's best interest to provide the
Retiree Dental program as cost effectively as possible.
It is regrettble that there was not more interest in the Dental program
from other carrers as that
is always the best way to secure rate relief from the in-force carrier, Delta Dental in this case.
Because of the lack of carrier competition and the overall high utilzation of the program, Delta
Dental's proposal ofa 15% renewal over existing 2009 rates is the best that can be expected.
That does not, however, come without some positive aspects. After a rough sta to the program
following many years with Horizon, the employees seem comfortable with Delta Dental and the
volume of calls or questions from employees has greatly diminished while most would agree
there is easy access to participating dentists in the Delta Dental network. Remaining with Delta
Dental would eliminate any disruption and any chance of the employee grievances that often
arise from a change of carrier of any significant employee benefits. In regards to the Closed
Plan, Delta Dental has made every effort to recruit dental providers that the City requested be in
the program and have been successful in that effort. Additionally, Delta Dental has greatly
supported the Retiree Program and has made countless concessions t9 provide this, ~s seamlessly
as possible, for the City. They continue to be flexible and accommodatig to the,Retirees and
the administration of the plan has gone rather smoothly. There are curentlyover 500retirees .
enrolled in the program.