HomeMy WebLinkAboutCORRESPONDENCE - RFP - P682 BENEFITSAdministrative Services
Purchasing Division
City of Fort Collins
November 6, 2002
Delta Dental
Attn: Pam Teague
P. O. Box 5468
Denver, CO 80217-5468
Re: City of Fort Collins #1857, #1858
Dear Ms. Teague:
NOV 13 2002
The City of Fort Collins wishes to extend the agreement term per the existing terms and conditions
and accepts the renewal rate of $3.18 charge per employee per month quoted in your letter dated
August 5, 2002. The term will be extended for one (1) additional year, January 1, 2003 through
December 31, 2003.
If the renewal is acceptable to your firm, please sign this letter in the space provided and return it to
the City of Fort Collins, Purchasing Division, P. O. Box 580, Fort Collins, CO 85022, within the next
fifteen days.
If this extension is not agreeable with your firm, we ask that you send us a written notice stating that
you do not wish to renew the contract and state the reason for non -renewal.
If you have any questions regarding this matter, please contact me at 221-6775.
Sincerely,
r- 1
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing and Risk Management
cc: Jerry Rueschhoff, William M. Mercer Incorporated
Vincent Pascale, City of Fort Collins Benefits Administrator
Signature Date
(Please indicate your desire to renew City of Fort Collins #1857, #1858 by signing this letter and
returning it to Purchasing Division within the next fifteen days.)
215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 9 FAX (970) 221-6707
Administrative Services
Purchasing Division
City of Fort Collins
July 29, 2002
Ms. Barb Kelty
Delta Dental of Colorado
4582 South Ulster Street, Suite 800
Denver, Colorado 80237
RE: City of Fort Collins - January 1, 2003 Renewal
Dear Ms. Kelty:
As you are aware, the City of Fort Collins' (the City) dental plans renew effective January 1,
2003.
Please provide us with the renewal for the dental plan administrative fees, effective January 1,
2003. In addition to receiving the new administrative fees, we would like to see the calculations
that are used to develop the new fees.
We need to receive this renewal as soon as possible. Please also send copies of the renewal
to Vincent Pascale at the City, and Phil Goldstein of Mercer Human Resource Consulting at the
following address:
370 17th Street, Suite 4000
Denver, Colorado 80202
If you have any questions, please call me at (970) 221-6779.
Sincerely,
es B. O'Neill II, CPPO, FNIGP
Director of Purchasing and Risk Management
Cc:
Mr. Vincent Pascale, Mr. Phil Goldstein
215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707
v DELTA DENTAL®
Delta Dental Plan of Colorado l AUG 1 3 2002
August 5, 2002
James B. O'Neill
City of Fort Collins
215 North Mason Street, 2nd Floor
P.O. Box 5468 Fort Collins, CO 80522
Denver CO 80217-5468
4582 South Ulster Street RE: CITY OF FORT COLLINS #1857 and 1858
Suite 800
Denver CO 80237 Dear James,
Telephone 303-741-9300
800-233-0860 Enclosed is a copy of the paid claims and administrative cost report for the above referenced
Fax 303-741-9338 client. Your client's contract renews January 1, 2003.
www.deltadentalco.com
The administrative fee charged for processing this group's claims is a reflection of the costs
of doing business. We are requesting an increase in the administration fee of 12.77% on their
anniversary. The increase is based on the Consumer Price Index. The current and renewal
rates are:
Current Renewal
Charge per employee per month $2.82 $3.18
An amendment will be mailed to you shortly before the renewal for this group. Please have
the group sign the amendment and return to our Contract Department. To insure timely
implementation of the group renewal rates, please notify me of the group's acceptance 1
month prior to the renewal date.
Please let me know if you have any questions. My phone number is 303-889-8614 or 1-800-
233-0860. Thank you.
Sincerely,
Delta Dental Plan of Colorado
Pam Teague. RHU
Senior Account Executive
cc: Mr. Vincent Pascale
City of Fort Collins
215 North Mason Street, 2nd Floor
Fort Collins, CO 80522
Mr. Phil Goldstein
William M Mercer, Inc
370 17th Street Ste 4000
Denver, CO 80202
c:
Administrative Service Contract
Rate Renewal
Date: 07/25/2002
01/01/2003
Group Number and Name:
City of Fort Collins
Number of Primary Subscribers:
1,320
Current Rate Per Primary Subscriber Per Month:2.82
=Month:
Cost Containment Savings Per Primary Subscriber
Claims Processed Per Primary Subscriber Annually4.99
Total Number of Claims Processed for the Group on an Annual Basis:
6,584
Book of Business Statistics:
Claims Processed Per Primary Subscriber Annually:
3.98
Administrative Expense Trend 2002:
7.65%
1) Current Rate Net Commissions
2,82
Electronic Eligibility
No
2) 2002 Book (Target) Rate Net Commissions
Manual
4.25
3) Current Rate Over(Under) Book Rate
(1.43)
A) If Current Rate Over Book Rate and no additional costs below - No Change
B) If Current Rate (Under) Book Rate or additional costs below - Compute Renewal Rate
4) Renewal Rate Calculation:
Target Rate (Includes Trend & Eligibility Adjustment)
4.25
Needed Increase
1.43
Needed Increase divided by 4 years
0.36
Additional Costs Specific to this Account:
Delta USA Costs
Added
Costs
NPF Access/% of total claims
1.00%
0.00
Panel Acquisition
Broker Commissions
0.00
Above Normal Claims Activity
25.32%
Eligibility from Multiple Sub -Locations
(# of subgroups)
6
Special Reports
o
Custom ID Cards
o
Incentive Ip
Performance Guarantees
0
Rate Guarantee
Manual Processes:
Other
o
Total additional costs
4�44
$ 3.18
5) Minimum Renewal Rate
$ 3.18
6) Amount of Renewal Rate Increase
Minimum Rate
0.36
Full Rate
1.43
7) Percentage of Rate Renewal Increase
Minimum Rate
12.77%
Full Rate
50.71%
8) Full Rate
$ 4.25
9) Total Cost Containment Savings to Group
166,871