Title
Approval of Amendment No. 2 to Services Agreement AGR20-04, with Delta Dental of New Mexico, in an Amount Not to Exceed $185,200, plus Applicable Gross Receipts Tax, for the Initial Term Plus this First Two Renewal Terms, for the Purpose of Providing Dental Insurance Benefits for Los Alamos County Employees
Recommended Action
I move that Council approve Amendment No. 2 to Services Agreement AGR20-04, with Delta Dental of New Mexico, to extend the provision of Dental Insurance Benefits to Los Alamos County employees for one additional year, in an amount not to exceed $185,200.
County Manager's Recommendation
The County Manager recommends that Council approve the Amendment as requested.
Body
The County's group insurance benefits plans, including dental insurance, are renewed at the beginning of the calendar year.
On June 9, 2019, the County issued Request for Proposal ("RFP") 20-04 for Dental Insurance Benefits for Los Alamos County employees. Delta Dental was awarded the contract effective January 1, 2020.
The County self-funds dental insurance for its employees. Delta Dental of New Mexico administers the benefit for the County and charges an Administrative Service Only (ASO) fee in the form of fixed fee per employee per month (PEPM). The current Per Employee Per Month (PEPM) fee is $4.95. This PEPM fee was guaranteed by the end of the calendar year 2024.
This Amendment No. 2 renews the Agreement through December 31, 2025, with a 6.9% increase to Administrative Fees from $4.95 PEPM to $5.29 PEPM, which constitutes a total annual increase of approximately $2,400.00.
Funding of Plan expenses, including claims and ASO fees, is achieved by collecting bi-weekly premiums from both the County and Employees. The County pays 80% of the premiums for a full-time eligible employee, 60% for a three-quarter-time eligible employee, and 40% for a half-time eligible employee.
The dental insurance plan has very high participation. 588 eligible regular and lim...
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