Agenda 09/14/2010 Item #10D
Agenda Item No. 100
September 14, 2010
Page 1 of 2
EXECUTIVE SUMMARY
Recommendation to approve the renewal of the Group Dental Insurance program
through Cigna Dental Plan, Inc. with no increase in the rates or terms for a one
year period effective January 1, 2011 in the amount of $1,768,900.
OBJECTIVE: To gain Board approval to purchase Group Dental Insurance through Cigna
Dental Plan effective January 1, 2011.
CONSIDERATIONS: The Board of Commissioners through its Risk Management Department
administers the group benefit program for its employees 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 arrangement.
In preparation for the FY 2011 budget, staff requested a renewal proposal from Cigna in May,
2010 in order to accurately prepare the budget. Staff coordinated the process through the
County's contracted broker, Willis, Inc.
Cigna presented a renewal proposal in May, 2010 that requested a 1.8% rate increase. The
staff of Risk Management and Willis reviewed the prior twelve month claim history and
determined that the loss ratio (loses/premiums) for the program did not support an increase in
the rate and requested that the CIGNA agree to retain the existing rates and terms for the 2011
policy year. As a result, Cigna agreed to no rate increase in 2011.
Claims adjudication has been prompt and Cigna has been responsive to service issues as they
arise. Further, Cigna has made efforts to expand the provider network in Collier County over
the past six years. The number of providers in network has grown from twenty-eight (28)
providers in 2005 to one hundred twenty four providers (124) in 2010.
There are no other changes to the terms and conditions of the program.
FISCAL IMPACT: The estimated cost of the program in calendar year 2011 based upon
average enrollment of 1,938 employees is $1,768,900. These costs include both the employer
and employee contributions. The Board's portion is approximately 53% of the total cost.
Sufficient funds are available within Fund 517, Group Health and Life Insurance for this
purchase.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with
this item.
LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County
Attorney's Office and is legally sufficient for Board action-SRT.
RECOMMENDATION: That the Board approves the purchase of Group Dental Insurance from
Cigna Dental Plan, Inc. with an effective date of January 1, 2011 through December 31,2011.
PREPARED BY: Jeffrey A. Walker, CPCU, ARM, Director, Risk Management
Item Number:
Item Summary:
Meeting Date:
Agenda Item No. 100
September 14, 2010
Page 2 of 2
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
10D
Recommendation to approve the renewal of the Group Dental Insurance program through
Cigna Dental Plan, Inc. with no increase in the rates or terms for a one year period effective
January 1, 2011 in the amount of $1 ,768,900. (Jeff Walker, Risk Management Director)
9/14/20109:00:00 AM
Prepared By
Jeffrey A. Walker, CPCU,
ARM
Administrative Services
Division
Director - Risk Management
Date
Risk Management
7/27/201010:10:28 AM
Approved By
Jeffrey A. Walker, CPCU,
ARM
Administrative Services
Division
Director - Risk Management
Date
Risk Management
7/27/201010:14 AM
Approved By
Scott R. Teach
County Attorney
Deputy County Attorney
Date
County Attorney
7/27/201011:06 AM
Approved By
Len Golden Price
Administrative Services
Division
Administrator - Administrative Services
Date
Administrative Services Division
8/31/20101 :37 PM
Approved By
OMB Coordinator
County Manager's Office
Date
Office of Management & Budget
9/1/2010 1 :24 PM
Approved By
Therese Stanley
Office of Management &
Budget
Manager - Operations Support - Trans
Date
Office of Management & Budget
9/1/20104:45 PM
Approved By
Michael Sheffield
Assistant to the County Manager
Date
County Managers Office
9/212010 10:42 AM