Agenda 09/10/2013 Item #16E 6 9/10/2013 16.E.6.
EXECUTIVE SUMMARY
Recommendation to approve a Dental HMO option to the Group Dental Insurance Plan
offered by CIGNA Dental Plan, Inc. at no additional cost.
OBJECTIVE: To gain Board approval to add a Dental HMO option to the Group Dental Insurance Plan
through CIGNA Dental Plan effective January 1, 2014.
CONSIDERATIONS: The Board of Commissioners through its Risk Management Department
administers the group benefits program for the County Manager's agency and participating
Constitutional Officers. Group Dental Insurance is offered as part of the program. Coverage is
provided by Cigna Dental Plan, Inc. under a fully insured PPO arrangement. In 2012, the Risk
Management staff sought proposals for dental insurance through the County's Benefits and Actuarial
Consultant, Willis, Inc. The Board approved the award of this coverage to CIGNA Dental Plan for a two
year period commencing January 1, 2013. Rates are guaranteed to remain the same for the two year
period.
CIGNA approached staff early in calendar year 2013 requesting that the County consider the addition
of their HMO option to the current dental program. Staff raised a number of questions and concerns
regarding this option and CIGNA has addressed these concerns sufficiently as follows:
• The addition of the HMO option will not affect the rate guarantee for the existing PPO option nor
will it increase cost to the County. In fact, HMO rates are on average, 50% below the Select
Plan PPO rates, presenting an opportunity for savings to both the County and employees.
• HMO dental offices in the CIGNA network have sufficient capacity to support the
employees/members who may choose this option. There are 22 providers in the network and all
22 are accepting new patients.
• HMO dental offices in the CIGNA network have sufficient open appointments to support the
needs of employees/members seeking services.
• There is no minimum enrollment requirement.
• Benefits under the HMO option are equal to or greater than the existing PPO option; however,
members who enroll in the HMO may be required to select a new dentist.
• Co-pays and out of pocket costs are generally lower than those under the existing PPO plan.
There are no other changes to the terms and conditions of the program.
FISCAL IMPACT: The estimated cost of the existing dental insurance program in calendar year 2014
based upon average enrollment of 1,870 employees is $1,626,697. The addition of the HMO option
does not increase the cost of the program however, if 20% of employees select the HMO option, the
total cost of the program is expected to be reduced by$141,606.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires
majority vote for approval. — CMG
RECOMMENDATION: That the Board approves the addition of an HMO option to the Group Dental
Insurance program through the Cigna Dental Plan, Inc. effective January 1, 2014.
PREPARED BY: Jeffrey A. Walker, CPCU, ARM, Director, Risk Management
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9/10/2013 16.E.6.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.E.16.E.6.
Item Summary: Recommendation to approve a Dental HMO option to the Group Dental
Insurance Plan offered by CIGNA Dental Plan, Inc. at no additional cost.
Meeting Date: 9/10/2013
Prepared By
Name: WalkerJeff
Title: Director-Risk Management,Risk Management
8/1/2013 4:21:26 PM
Submitted by
Title: Director-Risk Management,Risk Management
Name: WalkerJeff
8/1/2013 4:21:27 PM
Approved By
Name:pochopinpat
Title: Administrative Assistant,Facilities Management
Date: 8/2/2013 8:55:11 AM
Name: GreeneColleen
Title: Assistant County Attorney,County Attorney
Date: 8/6/2013 12:14:55 PM
Name: PriceLen
Title: Administrator, Administrative Services
Date: 8/21/2013 1:47:50 PM
Name: PryorCheryl
Title: Management/Budget Analyst, Senior,Office of Manag
Date: 8/21/2013 2:36:05 PM
Name: KlatzkowJeff
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9/10/2013 16.E.6.
Title: County Attorney
Date: 8/23/2013 9:58:10 AM
Name: OchsLeo
Title: County Manager
Date: 8/23/2013 11:55:19 AM
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