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Home My WebLink AboutCORRESPONDENCE - RFP - P692 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 1 3 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 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 ^7 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 PO Box 580 • Fort Collins CO 80522 0580 (970) 2216775 • FAX (970) 2216707 Delta Dental Plan of Colorado 07/23/02 Self -Funded Group Information Group Number 001857 Effective 01/01/97 Group Name City Of Fort Collins Anniversary Jan Admin Number of Number of Month Eligibles Fee Claims Paid Claims Processed Claims Jul 2001 1 011 2 761 30 33 090 89 364 411 Aug 2001 1 011 2 679 15 45 571 17 450 530 Sep 2001 1 006 2 636 75 40 087 20 333 374 Oct 2001 1 010 2 700 35 37 935 13 381 461 Nov 2001 1 016 2 718 90 42 698 17 411 458 Dec 2001 1 017 2 703 00 36 986 30 366 437 Jan 2002 1 033 2 990 35 43 279 71 356 410 Feb 2002 1 030 2 891 62 47 780 80 425 471 Mar 2002 1 083 3 371 94 52 446 70 434 493 Apr 2002 1 097 3 159 18 58 440 62 445 491 May 2002 1 099 3 116 71 56 476 39 467 535 Jun 2002 1 109 3 149 90 58 200 01 464 516 Totals for 12 mths 12 522 $34 879 15 $552,993 09 4,896 5,587 Group s Current Administrative Fee is $2 82 per Eligible Average number of eligibles is 1 044 Delta s Overall Group s ASO Average Average Average Number of Annual Paid Claims 3 37 /per Eligible 469 Average Number of Annual Processed Claims 3 98 /per Eligible 535 Delta Dental Plan of Colorado 07/23/02 Self -Funded Group Information Group Number 001858 Effective 01/01/97 Group Name City Of Fort Collins Anniversary Jan Admin Number of Number of Month Eligibles Fee Claims Paid Claims Processed Claims Jul 2001 283 76055 3 265 30 61 71 Aug 2001 283 75260 6 145 52 92 106 Sep 2001 281 73935 3 817 20 65 77 Oct 2001 282 74995 4 896 20 78 88 Nov 2001 284 72345 4 747 80 92 107 Dec 2001 284 76055 3 696 20 69 78 Jan 2002 285 80584 5 129 42 72 85 Feb 2002 284 79772 4 517 40 71 83 Mar 2002 263 58426 3 867 30 58 68 Apr 2002 261 711 49 4 007 70 63 76 May 2002 260 71611 4 407 70 65 79 Jun 2002 265 771 76 4 637 30 70 79 Totals for 12 mths 3,315 $8 873 63 $53 135 04 856 997 Group s Current Administrative Fee is $2 82 per Eligible Average number of eligibles is 276 Delta s Overall Group s ASO Average Average Average Number of Annual Paid Claims 3 37 /per Eligible 310 Average Number of Annual Processed Claims 3 98 /per Eligible 361 DELTA DENTAL PLAN OF COLORADO COST CONTAINMENT REPORT GROUP NUMBER GROUP NAME TIME PERIOD 1857/1858 City of Fort Collins 07/01 /01-06/30/02 % OF DOLLAR SUBMITTED SAVINGS CHARGES 1 COB SAVINGS $ 4 949 58 0 30% 2 FILED FEES/UCR CONCEPT $ 60 653 50 3 70% 3 DENIED FOR CONTRACT LIMIT $ 50,034 50 3 06% 4 ELIGIBILITY VERIFICATION $ 38 952 84 2 38% 5 NON -COVERED PROCEDURES $ 81,340 00 4 97% 6 DENTIST CONSULTANT REVIEW $ 5 845 00 0 36% 7 OPTIONAL SERVICES $ 34 376 00 2 10% 8 NON -BILLABLE PROCEDURES $ 65,996 32 4 03% 9 MAXIMUM/DEDUCTIBLE $ 55 779 82 3 41% TOTAL CONTAINED $ 397 927 56 24 30% TOTAL SAVINGS DUE TO THE DELTA DIFFERENCE $ 166 870 82 10 19% (ITEMS 2 6 7, AND 8) TOTAL OF SUBMITTED CHARGES $ 1 637 766 95 TOTAL PAID CLAIMS $ 606,128 13 7/24/02 Administrative Services Purchasing Division City of Fort Collins July 29 2002 Ms Barb Kelly 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 r 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 PO Box 580 Fort Collins CO 80522 0580 (970) 221 6775 FAX (970) 221 6707 Gl DELTA DENTAL® Delta Dental Plan of Colorado August 5 2002 James ONeill City of Fort Collins 215 North Mason Street, 2nd Floor PO 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 90237 Dear James AUG 1 3 2002 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 coin The administrative fee charged foi 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 Charge per employee per month Current Renewal $2 82 $3 18 An amendment will be mailed to you shortlN before the renewal for this group Please have the gioup 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 i Pam Teague R14U 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 Administrative Service Contract Rate Renewal Date 07/25I2002 Renewal Effective 01/01/2003 Group Number and Name 1857 City of Fort Collins Number of Primary Subscribers 1858 1 320 Current Rate Per Primary Subscriber Per Month 282 Cost Containment Savings Per Primary Subscriber Per lonth 1053 Claims Processed Per Primary Subscriber Annually 499 Total Number of Claims Processed for the Group on an Annual Basis 6 584 Statistics ms Processed Per Primary Subscriber Annuallyinistrative Expense Trend 2002e VBookkss Net Commissionsronic Eligibility No 2) 2002 Book (Target) Rate Net Commissions Manual 425 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) 425 Needed Increase F 143 Needed Increase divided by 4 years 036 Additional Costs Speafic to this Account Delta USA Costs Added Costs NPF Access/% of total claims 100% 000 Panel Acquisition Broker Commissions 000 Above Normal Claims Activity 25 32% Eligibility from Multiple Sub Locations (# ofsubgroups) 6 Special Reports 0 Custom ID Cards 0 Incentive 0 Performance Guarantees 0 Rate Guarantee Manual Processes Other 0 Total additional costs QIM $ 318 5) Mmmmum Renewal Rate $ 318 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 $ 425 9) Total Cost Containment Savings to Group 166 871 Delta Dental Plan of Colorado 07/23/02 Self -Funded Group Information Group Number 001857 Effective 01/01/97 Group Name City Of Fort Collins Anniversary Jan Admin Number of Number of Month Eligibles Fee Claims Paid Claims Processed Claims Jul 2001 1 011 2 761 30 33 090 89 364 411 Aug 2001 1 011 2 679 15 45 571 17 450 530 Sep 2001 1 006 2 636 75 40 087 20 333 374 Oct 2001 1 010 2 700 35 37 935 13 381 461 Nov 2001 1 016 2 718 90 42 698 17 411 458 Dec 2001 1 017 2 703 00 36 986 30 366 437 Jan 2002 1 033 2 990 35 43 279 71 356 410 Feb 2002 1 030 2 891 62 47 780 80 425 471 Mar 2002 1 083 3 371 94 52 446 70 434 493 Apr 2002 1 097 3 159 18 58 440 62 445 491 May 2002 1 099 3 116 71 56 476 39 467 535 Jun 2002 1 109 3 149 90 58 200 01 464 516 Totals for 12 mths 12 522 $34 879 15 $552 993 09 4,896 5 587 Groups Current Administrative Fee is $2 82 per Eligible Average number of eligibles is 1 044 Deltas Overall Group s ASO Average Average Average Number of Annual Paid Claims 3 37 /per Eligible 469 Average Number of Annual Processed Claims 3 98 /per Eligible 536 I Jim O Neill RE Fort Collins Renewals Page 1 From Goldstein Phillip <Phillip Goldstein@mercer com> To Vincent Pascale <vpascale@fcgov com> Date 11/4/02110PM Subject RE Fort Collins Renewals Vincent You and I have both discussed the dental renewal with Delta Dental and it is my understanding that based on those discussions and some other dental ASO fee information we provided to you that you are agreeable to the dental renewal The medical coverage of course is transferring to Great West so it is already taken care of and agreed upon The Life and LTD renewals while not insignificant are below what you had estimated for the City s budget and are guaranteed for two years You earlier indicated satisfaction with the renewals Voluntary life rates are actually decreasing approximately 15% overall Vision fees are being continued and guaranteed for two years Transplant coverage is being increased 5% (12 month rates) and the City is part of a trust so there is likely no room for negotiation This only leaves the stop loss coverage and we discussed earlier that the premium difference between Great West and Ulico was not great Administratively from both the City perspective and Great West having the stop loss and medical administered by the same carrier is usually easier and smoother So based on these comments I would agree with your decision to accept the renewals and place the stop loss coverage with Great West You should probably notify Great West as soon as possible so that all disclosure requirements can be completed and the stop loss coverage finalized for 2003 Let me know if you need anything else Original Message - From Vincent Pascale (mailto vpascale@fcgov com] Sent Monday November 04 2002 12 54 PM To Phillip Goldstein@mercer com Subject Fort Collins Renewals Phil I m inclined to accept all of the renewals but to go with GWL for stop loss Would you kindly let me know your thoughts? Thanks Vincent f Jim O Neill RE Fort Collins Renewals _ Page 2 a This a mad and any attachments may be confidential or legally privileged If you received this message in error or are not the intended recipient you should destroy the a mail message and any attachments or copies and you are prohibited from retaining distributing disclosing or using any information contained herein Please inform us of the erroneous delivery by return e mail Thank you for your cooperation ec03/04 cc Rueschhoff Jerry <Jerry Rueschhoff@mercer com> 46 DELTA DENTAL P �� Delta Dental Plan of Colorado R r AUG 13 2002 August 5 2002 James B O Neill HUMAN WSOURCES City of Fort Collins 215 North Mason Street 2nd Floor PO Bo.D4(8 FortCollins CO 80522 Denier CO 80217 468 4582 south Ulster Street RE CITY OF FORT COLLINS #1857 and 1858 smu 800 Dent CO 80237 Dear James Tcicphonc 303 741 9300 800 233 0860 Enclosed is a copy of the paid claims and administrative cost report for the above referenced rax 303 741 r338 client Your client's contract renews January 1 2003 www delttdcnnlco tom 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 i Pam Teague RHU a ✓ s k r Y y R F tl Y 4 � i x Y 4 t 1 t ( 1 �1 Administrative Service Contract Rate Renewal Date 07/2512002 1 Renewal Effective 01/01/2003 Group Number and Name 1857 ollins Number of Primary Subscribers 1858 Current Rate Per Primary Subscriber Per Month t Containment Savings Per Primary Subscriber Per Month ]2282 Claims Processed Per Primary Subscriber Annually Total Number of Claims Processed for the Group on an Annual Basis Book of Business Statistics Claims Processed Per Primary Subscriber Annually 3 98 Administrative Expense Trend 2002 7 65% 1) Current Rate Net Commissions 282 Electronic Eligibility No 2) 2002 Book (Target) Rate Net Commissions Manual 425 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 1 43 Needed Increase divided by 4 years 036 Adddwnal Costs Specific to this Account Delta USA Costs I I Added Costs NPF Access/% of total claims 1 0o i 000 Panel Acquisition Broker Commissions 000 Above Normal Claims Activity 2532/6 Eligibility from Multiple Sub Locations (# of subgroups) s Special Reports o Custom ID Cards 0 Incentive 0 Performance Guarantees o Rate Guarantee Manual Processes Other o Total additional costs SQ 4 $ 318 5) Minimum Renewal Rate $ 318 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 $ 425 9) Total Cost Containment Savings to Group I166 871