REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
July 26, 2022
FROM
DIANE RUNDLES, Director, Human Resources Department
SUBJECT
Title
Approval of Dental Plan Contract for Plan Years 2022-23 through 2026-27 with Delta Dental of California
End
RECOMMENDATION(S)
Recommendation
Approve the Contract with Delta Dental of California to provide group dental plan benefits for eligible active employees, Consolidated Omnibus Budget Reconciliation Act participants, and all eligible dependents for the period of July 30, 2022 through July 23, 2027.
(Presenter: Diane Rundles, Director, 387-5570)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). There is no additional cost to the County associated with the approval of this item as the County’s contribution to employee dental insurance premiums is fixed pursuant to ordinances, compensation plans, and negotiated Memoranda of Understanding with individual labor unions.
Approval of this item does result in a $10,000 one-time contribution to the Employee Benefits and Services Division (EBSD) fund by Delta Dental of California (Delta Dental) that can be utilized for the County’s Employee Wellness Program, which provides wellness educational webinars, on-site classes, incentives and resources for employees such as the County’s Wellness Mobile Application. Budget adjustments associated with this revenue are not currently included in the Human Resources (HR) 2022-23 Adopted Budget and will therefore be requested in a future mid-year budget report.
BACKGROUND INFORMATION
Approval of this item authorizes a five-year agreement between the County and Delta Dental of California to administer dental benefits for active employees, Consolidated Omnibus Budget Reconciliation Act (COBRA) participants, and eligible dependents through Delta Dental. The dental benefit plans include Dental Health Maintenance Organization (DHMO) and Dental Preferred Provider Organization (DPPO) options.
On October 15, 2021, HR began the request for proposal process to solicit vendor proposals for dental plan benefits. With a collaborative effort and a thorough negotiation process, HR, the Employee Benefits Advisory Committee (EBAC), and the County’s contracted benefits consultants, the Segal Company (Segal), successfully secured dental plans and rates. On May 24, 2022 (Item No. 55), the Board of Supervisors (Board) approved Delta Dental as the group plan provider for all active employees, Consolidated Omnibus Budget Reconciliation Act participants, and eligible dependents for plan years 2022-23 through 2026-27, approved dental premium rates, and authorized the Director of Human Resources to finalize contracts.
The contract with Delta Dental has no changes to the existing plan design, coverage, or copays. Key provisions of the contract include:
• No increase to the current Delta Dental DHMO premium rates for plan years 2022-23, 2023-24 and 2024-25;
• No increase to the Delta Dental DPPO Administrative Services Only Fee for plan years 2022-23, 2023-24 and 2024-25;
• A 3% not-to-exceed rate cap for Delta Dental DHMO premium rates and Delta Dental DPPO’s Administrative Services Only fee for plan years 2025-26 and 2026-27;
• Updates the definition of an eligible employee, which will ensure employees who are on a leave of absence maintain their dental coverage and dental premium subsidy in accordance with their applicable MOU, compensation plan, salary ordinance or contract; and
• Provides a one-time contribution in the amount of $10,000 from Delta Dental to the County towards the County Employee Wellness Program.
Upon Board approval, Delta Dental will file the updated DHMO plan, included in the County’s contract as Exhibit C - DELTACARE® USA Contract, for regulatory approval with the California Department of Managed Health Care.
PROCUREMENT
On October 15, 2021, HR issued a Request for Proposals (RFP-HRD221-HR2-4366) to solicit vendor proposals for dental plan benefits in order to obtain favorable dental premium rates and cost containment on its DHMO and DPPO plans for employees and retirees.
As a result of a competitive process, on May 24, 2022 (Item No. 55), the Board approved Delta Dental as the group plan provider for all active employees, Consolidated Omnibus Budget Reconciliation Act participants, and eligible dependents for plan years 2022-23 through 2026-27, and authorized the Director of Human Resources to finalize contracts, which were delayed due to changes to contract language that update the definition of an eligible employee such that eligibility is consistent with and established by each employee’s applicable Memorandum of Understanding (MOU), Compensation Plan, salary ordinance or contract. The retiree dental plan contract and rates will be presented to the Board for approval prior to the contract expiration of December 31, 2022.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Jose Mendoza, Deputy County Counsel, 387-5455) on June 29, 2022; Purchasing (Bruce Cole, Supervising Buyer, 387-2148) on July 1, 2022; Finance (Abigail Buecheler, Administrative Analyst, 387-4603) on July 12, 2022; and County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on July 12, 2022.