HomeMy WebLinkAboutA001 - Council Action Form dated May 27, 2025ITEM #:21
DATE:05-27-25
DEPT:HR
SUBJECT:RENEWAL OF DENTAL INSURANCE ADMINISTRATOR CONTRACT
COUNCIL ACTION FORM
BACKGROUND:
For many years the City has contracted with Delta Dental of Iowa to administer the
Dental Insurance benefits approved by City Council for City employees and their
families. Over the past several years Delta has provided good customer service and has had
a commendable record of accurate and timely claim payment. Delta Dental also has
advantageous contractual relationships with dental providers in Ames and throughout central
Iowa, which allows the City to realize significant discounts on services received. Delta has a
proven record of being able to administer the existing plans and has also been a willing and
capable partner in our efforts to improve the health status of employees and their families
through quality programs.
Delta Dental is estimating the City's annual claims to be $450,037 for FY 2025/26. Fixed
monthly fees increased from $5.29 per contract to $5.44 per contract, or 2.8%, from
2024/25 to FY 2025/26. The total projected annual expense of $485,484 is covered in the
amounts budgeted for health insurance included in the FY 2025/26 budget.
ALTERNATIVES:
1. Accept the renewal documents from Delta Dental of Iowa to provide administrative
services for dental benefits effective July 1, 2025.
2. Reject the renewal from Delta Dental of Iowa and seek another company to provide the
administrative services for the City's dental plan.
CITY MANAGER'S RECOMMENDED ACTION:
Over the past two decades Delta Dental of Iowa has been an effective administrator of
the City’s dental administrative services. Renewal of this contract will provide the best
value to the City in administering its dental insurance program. Therefore, it is the
recommendation of the City Manager that the City Council adopt Alternative #1, as described
above.
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