Explanation
BACKGROUND:
Funding for the dental insurance program is necessary to ensure continuation of the city’s dental insurance program. The Department of Human Resources requests to contract with Delta Dental Plan of Ohio, Inc. from January 1, 2027 through December 31, 2030 and to provide funding from January 1, 2027 through December 31, 2027 for these programs. This contract has an initial term of four years with the option of two one-year renewals.
In May of 2026, the Department of Human Resources, with assistance from Marsh & McLennan Agency, our employee benefits and wellness consultant, went out to bid for a dental insurance program administrator via RFP032902.
The RFP team interviewed four dental insurance administrators finalists of the five bids provided:
Aetna, A CVS HEALTH COMPANY
Anthem Inc
Delta Dental Of Ohio
MetLife
After careful consideration and evaluation, Delta Dental Plan of Ohio, Inc.was selected as being the lowest and best bid.
Cost estimates for 2027 are based on weighted 2024, 2025 and 2026 benefit fund expenditures, using a weighted average of actual city utilization, expected changes due to union negotiations, as well as input from the City's employee benefits and wellness consultant. The Department of Human Resources requests to contract with Delta Dental Plan of Ohio, Inc. from January 1, 2027 through December 31, 2030 and to provide funding for January 1, 2027 through December 31, 2027.
The maximum obligation liability for dental insurance program from January 1, 2027 through December 31, 2027 for Delta Dental Plan of Ohio, Inc. is $8,650,000.00.
This ordinance is contingent on the passage of the 2027 insurance appropriation ordinance 2680-2026.
FISCAL IMPACT: Funding is available in the 2027 Employee Benefits Fund for this contract.
Title
To authorize the Director of the Human Resources Department to enter into a contract with Delta Dental Plan of Ohio, Inc. and to provide all eligible employees and eligible terminated participants with COBRA, dental insurance services from January 1, 2027 through December 31, 2030; to authorize the expenditure of $8,650,000.00 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contract. ($8,650,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to enter into a contract with Delta Dental Plan of Ohio, Inc. to provide all eligible employees and eligible terminated participants with COBRA, with dental insurance services from January 1, 2027 through December 31, 2030; and
WHEREAS, it is necessary to authorize the expenditure of up to $8,650,000.00, or so much thereof as may be necessary to pay contract costs for the dental insurance administrator; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Human Resources to request contract and expenditure authority; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Human Resources is hereby authorized to enter into contract with Delta Dental Plan of Ohio, Inc. to provide dental insurance services from January 1, 2027 through December 31, 2030.
SECTION 2. That the expenditure of $8,650,000.00 or so much thereof as may be necessary for coverage is hereby authorized to be expended as follows:
Department: 4602 | Fund: 5502 | Subfund: 550205 | Program: RM005 | Amount: $350,000.00 (Dental Admin)
Department: 4602 | Fund: 5502 | Subfund: 550205 | Program: RM006 | Amount: $8,300,000.00 (Dental Claims)
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.