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Meeting Date:
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9/17/2019 - 6:30 PM
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Category:
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ITEMS OF BUSINESS
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Type:
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Action
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Subject:
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8. Action on Request to Waive Administrative Policy 3.09(9)(e) and to Enter into Two Contracts with Delta Dental of Wisconsin, Inc., for Dental Insurance
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Strategic Plan Compatibility Statement:
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Goal 3 Effective and Efficient Operations
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Attachments
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Proposed Contract
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File Attachment:
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Background:
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The Administration is requesting authorization to waive the three-year term limit of Administrative Policy 3.09(9)(e) and to enter into two contracts with Delta Dental of Wisconsin, Inc., (“Delta Dental”) for the administration of the District’s dental plans. The district partnered with Hays (Benefit Consultants) to develop and evaluate RFP 1020 for the administration of the self-funded dental Preferred Provider Plan (PPO) and the fully-insured Dental Health Maintenance Organization (DHMO) plan. Of the employees enrolled, 45% are in the PPO plan, and 55% are in the DHMO plan. Delta Dental quoted a replication of the current self-funded PPO plan which they currently administer. Delta Dental also quoted a replication of the fully-insured DHMO plan which is currently insured by Care-Plus (Dental Associates). Employees enrolled in the DHMO would still have access to dentists at Dental Associates, plus they will now be able to see dentists in the Delta Dental PPO network if they so choose. Both plans' designs would mean no disruption to employees.
For the self-funded PPO plan, Delta Dental has proposed an administrative-service only (ASO) fee of $2.30 per employee per month (reduction from current), with a six-year fee guarantee. The total cost of this contract is $385,400.00 in the Initial Term. Delta Dental has also included other performance guarantees.
For the fully-insured DHMO plan, Delta Dental has proposed a monthly premium of $31.32 for single coverage and $103.49 for family coverage. This is a 5% cost reduction from the current plan's monthly premiums. The total cost of this contract is $8,215,400.00. Delta Dental also included a $10,000 implementation-satisfaction guarantee.
Contractor was chosen pursuant to RFP 1020, which closed on July 16, 2019. The contract for the self-funded PPO plan will run from January 1, 2020, through December 31, 2023, (the “Initial Term”) with two one-year options to extend if certain performance metrics incorporated into the contract are met. The contract for the fully-insured DHMO plan will run from January 1, 2020, through December 31, 2021, (the “Initial Term”) with two one-year options to extend if certain performance metrics incorporated into the contract are met.
The total cost of the two contracts in the Initial Term will not exceed $8,600,800
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Fiscal Impact Statement:
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This item authorizes expenditures as indicated in the attachments.
DWC-00-EMB-DW-EDNI…(Employee Benefits-Dental)…$8,600,800
Delta Dental of Wisconsin
PRIME CONTRACTOR INFORMATION
Certified HUB Contractor? ……………………….No
Total # of Employees ………………………….354
Total # of Minorities …………………………..17
Total # of Women ……………………………..249
HUB PARTICIPATION
Required ……………………………………………NA
Proposed ……………………………………………NA
$ Value …………………………………………….NA
STUDENT ENGAGEMENT
Paid Student Employment Hour Commitment: 600 hours per 12-month contract
Student Career Awareness Commitment: 10 hours per 12-month contract
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Implementation and Assessment Plan
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Upon approval by the Board, the contracts will begin as indicated in the attachments.
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Recommendation:
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The Administration recommends that the Board authorize the waiver of Administrative Policy 3.09(9)(e) and approve the contracts with Delta Dental of Wisconsin, Inc., as set forth in the attachments to this item.
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Approvals:
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Recommended By:
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Signed By:
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Leila Sadoughian - Procurement Coordinator
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Signed By:
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Adria D Maddaleni - Director
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Signed By:
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Regina Flores - Contract Compliance Supervisor II
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Signed By:
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Martha Kreitzman - Chief Financial Officer
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Signed By:
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Christopher Hauser - Deputy Superintendent
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Signed By:
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Keith Posley, Ed.D. - Superintendent
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