05-10-2016 Regular School Board Meeting
Agenda Item #37


Title
Contractual service contract for Employee Dental Insurance

Discussion

The district’s contract for employee dental insurance with Solstice DPPO is scheduled to terminate December 31, 2017 and for Solstice DHMO 12/31/2018.  Due to problems experienced by staff and the area dentists have had with this vendor over the first two years of their contract, the Office of Employee Benefits and Risk Management seeks board approval to terminate this contract as of December 31, 2016 in order to contract with a new vendor to provide DPPO and DHMO insurance plans for the district.    In anticipation that the Board would grant the termination of the contract with Solstice, the district’s broker and consultant for employee benefits Willis, Towers, Watson was tasked to issue a solicitation in the marketplace for these services in order for the district to continue these services for our employees without disruption starting January 1, 2017.   Willis, Towers, Watson performed this process in early February 2016 and nine (9) service providers responded to the solicitation.  Three (3) providers declined to offer a competitive response and the remaining six (6) submitted quotes for these services.  The three top proposers were:

·        Cigna - with overall rate of $463,350 for DHMO, $2,181,563 for DPPO for a total of $2,644,913.  In addition, they offered their Brighter.com Program, an oral health integration program, to integrate carrier phone numbers, a one-time implementation fund of $10,000, and lower this district’s ASO fees by $1.00 per employee per month (estimated value of $80,000 per year). 

·        MetLife - with an overall rate of $522,961 for DHMO, $2,188,458 for DPPO for a total of $2,761,301.  In addition, they offered $20,000 one-time implementation fund and a vision discount. 

·        Delta Dental – with an overall rate of $522,961 for DHMO, $2,246,943 for DPPO for a total of $$2,769,904.  In addition, they offered the possibility of an on-site dental capability following a business feasibility study in conjunction with a meeting with the district to assess our needs in this area.   

The Superintendents Insurance Advisory Committee (SIAC) was engaged to evaluate all of the offerings provided by these vendors in an oral presentation.  In addition, SIAC compared the pricing and deductibles as in each area that all three vendors provided.  In the end, SIAC chose Cigna as their top choice for dental providers, MetLife came in second, and Delta Dental came in third.  Cigna’s over all rates are 1.4% lower than our current rates with Solstice.  The proposed rates and other offerings proposed can be found in the attached analysis as compiled by Willis, Towers, Watson.  In addition, I have attached the SIAC committee’s score sheets and additional information that outlines each proposer’s offerings.   



Recommendation

1. Approve the termination of the district's contract with Solstice Dental on December 31, 2016.
2. Approve a three-year contract with Cigna Dental beginning January 1, 2017, to provide the district with employee DHMO and DPPO dental insurance services as recommended by the Superintendent's Insurance Advisory Committee.



Meeting Date(s)
Information - 5/10/2016
Consent after Information5/24/2016

Authority for Action
Board Policy 6320, Florida Administrative Code 6A.012(11)(12)(15)

Involves Expenditure of Funds Directly in the Classroom
Partial

Source of Funding
Operating - Other

FY
Amount
Budgeted
Fund
Cost Center
Project
Function
Object
Program
2017TBDYES73198500010027500779000

Contact

Mark Langdorf, Director, Office of Employee Benefits and Risk Management, ext. 620.
Dr. Carol Kindt, Deputy Superintendent/Chief Human Resources Officer, ext. 200




Attachment:  2017-19 Dental Bid Support Documents.pdf
Attachment:  2017-19 Dental Provider Bid Tabulation Sheets as scored by the SIAC committee.pdf
Attachment:  2017-19 Final Analysis for Dental Providers - 3-29-2016.pdf