Explanation
BACKGROUND:
Funding for dental insurance is necessary to ensure continuation of the city’s dental insurance program. Insurance programs must be maintained in accordance with the negotiated labor contracts. The Human Resources Department initially contracted with Delta Dental Plan of Ohio, Inc. for three years with the option of two - one-year renewals. The contract originated on February 1, 2021. Due to an aggressive offer from Delta Dental of Ohio, Inc., the Human Resources Department contracted with Delta Dental of Ohio, Inc, for two years instead of two - one-year renewals, from February 1, 2024 through January 31, 2026. The Human Resources Department is now requesting funding for February 1, 2025 through January 31, 2026 for this program.
Cost estimates for 2025 claims and administrative fees are based on 2023 and 2024 benefit fund expenditures using a twenty-four-month average of actual city utilization, expected changes due to union negotiations, contract terms and input from the City's employee benefits consultant.
Emergency action is requested to ensure the dental insurance program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Funding for this contract is budgeted and available in the 2025 Employee Benefits Fund. This ordinance is contingent on the passage of the 2025 insurance appropriation ordinance 3201-2024.
Title
To authorize the Director of the Human Resources Department to contract with Delta Dental Plan of Ohio, Inc. to provide all eligible employees dental insurance coverage from February 1, 2025 through January 31, 2026; to authorize the expenditure of $8,760,000.00 from the Employee Benefits Fund, or so much thereof as may be necessary, to pay the costs of said contract; and to declare an emergency. ($8,760,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to contract with Delta Dental Plan of Ohio, Inc...
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