This is to award an annual contract for Employee Dental Plan Benefits to The Standard Insurance Company in the amount of $1,268,282.

The City of Savannah makes available to eligible employees, retirees, and family members access to voluntary dental insurance coverage.  Due to service issues with the current dental carrier, the Office of Human Resources requested USI market the dental coverage. 

The estimated premium is to be paid 100% by those members who are enrolled in the insurance coverage. There is no cost to the city for this service. The policy will be effective from January 1, 2023, through December 31, 2023.  The contract offers a 2-year rate guarantee with a renewal cap of no more than 6% on year three.

The City of Savannah offers three-tier dental plans:  low plan, high plan, and a platinum plan.  Orthodontic coverage for adults will be added to the low and platinum plans. The Standard offers “max keeper” where preventive services do not apply to the annual maximum benefit.  This allows for members to have more money available from the maximum out-of-pocket for high-cost services annually regardless of plan election. The platinum plan will increase coverage of services to 100% for preventive services, to 90% for basic services, and 60% for major services. The difference in rates are listed below:

               Current Carrier Rates (Weekly):  MetLife                                             New Recommended Carrier Rates (Weekly):  The Standard
                   Low Plan                  High Plan                  Platinum Plan                                   Low Plan                      High Plan                       Platinum Plan         
Emp Only   $4.21                        $7.18                        $8.05                               Emp Only  $4.00                            $6.82                             $8.57
EE+1          $7.77                        $12.70                      $14.25                             EE+1         $7.38                            $12.07                           $15.09
Family        $14.18                      $19.18                      $21.52                             Family       $13.47                           $18.22                           $22.41


Current Carrier Rates (Bi-weekly):  MetLife                                                        New Recommended Carrier Rates (Bi-Weekly):  The Standard
                  Low Plan                  High Plan                  Platinum Plan                                    Low Plan                      High Plan                       Platinum Plan         
Emp Only  $8.42                       $14.35                       $16.11                             Emp Only   $8.00                            $13.64                            $17.14
EE+1         $15.54                     $25.40                       $28.51                             EE+1         $14.76                          $24.13                            $30.17
Family       $28.36                     $38.36                       $43.04                             Family        $26.94                          $36.44                            $44.82

The Standard will provide a $5,000 credit for implementation, lower the LTD rates (paid by the City) by 5% resulting in $12,500 in cost savings, and extend the rate guarantees for life insurance and LTD until 01/01/2025.

Recommendation: The Standard presented with the lowest rates for the dental plans, the addition of orthodontic coverage for adults, improved plan coverages for the platinum plan, cost reduction to the City of Savannah for LTD, and very little disruption in network service to current members.

USI marketed to eight dental carriers requesting a match of current benefits and an alternate plan design of 100/90/60 coverage on the Platinum dental plan.  Two carriers declined to quote, and one carrier did not respond.  The five carriers that responded were the Guardian, Lincoln Financial, The Standard, United Concordia, and Unum. The most competitive bids were from the Guardian and The Standard.  (See attached marking results).
 

L.B.         The Standard Insurance Company (Portland, OR)^(D)           $1,268,282

               Guardian Life Insurance Company of America (New York, NY) ^(D) $1,297,879

               United Concordia Companies, Inc. (Camp Hill, PA) ^(D)    $1,440,488

               Unum Group (Chattanooga, TN)^(D)  Not Comparable Benefits

               Lincoln Financial Group (Radnor, PA)^(D)    Not Comparable Benefits

              Mutual of Omaha  (Omaha, NE)^(D)       Declined                                                                

               Sun Life     (Wellesley Hills, MA)^(D)    Declined                                                                                                                  

 (D) Indicates non-local, non-DBE business. 

Approval