06-14-2016 Regular School Board Meeting
Agenda Item #21


Title
Contractual Service Contract for Employee Dental Insurance

Discussion

The district’s contract for employee dental insurance with Solstice PPO is scheduled to terminate December 31, 2017 and for Solstice DHMO December 31, 2018.  Due to problems experienced by staff and the dentists in the area 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 PPO 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:

  • Delta Dental – with an overall estimated annual rate of $460,335 for DHMO, $2,142,959 for DPPO for a total of $2,603,294.  This coverage does not include dental implant treatment.  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.  
  • Cigna - with overall estimated annual rate of $457,853 for DHMO, $2,106,147 for DPPO for a total of $2,564,000.  This coverage does cover dental implants.  In addition, they offered their Brighter.com Program, an oral health integration program, to integrate carrier phone numbers, and a one-time implementation fund of $10,000.  
  • MetLife - with an overall estimated annual 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. 
    Cigna’s overall rates are 4.4% less 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.


Recommendation

1. Approve the superintendent's recommendation to  terminate district's contract with Solstice Dental on December 31, 2016.
2. Approve the superintendent's recommendation for a  three-year contract with Cigna beginning January 1, 2017 to provide the district with employee DHMO and DPPO dental Insurance services.



Meeting Date(s)
Information - 5/10/2016
Consent after Information5/24/2016
Consent after Information6/14/2016

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:  1. 2017 Dental Overall Pricing Compare.pdf
Attachment:  2. Dental DHMO Comparison 6-1-2016.pdf
Attachment:  3. 2017 Dental PPO Comparison - 6-1-2016.pdf
Attachment:  4. Dental Code Exhibit for Board KLM.pdf