The document discusses offering dental insurance to the city's 500 retirees and their dependents through the city's current dental insurance provider, Delta Dental. It provides 3 scenarios for premium costs: 1) retirees pay the full increased cost; 2) the city absorbs the full increased cost; 3) employees and retirees pay the increased cost but the city absorbs the cost for adding 500 new participants. The city council is being asked to decide whether to offer retiree dental coverage and which premium scenario to use. Coverage would begin January 1st if approved.

1. Dental Insurance for Retirees
November 6, 2012

2. Background
During the self-insurance fund update to Council on
September 18, 2012, Council requested that staff look
into whether or not pre-65 and post-65 retirees (and
their dependents) could be offered dental insurance
coverage through the current provider, Delta Dental
Insurance Company.

3. Background
Council also requested that the impact of adding
retirees to the dental plan be identified and to
research the associated cost.
Presently the City covers 860 active employees/
dependents at an annual cost of $157,070.
There are approximately 500 retirees who would be
eligible to enroll if offered.

4. Background
As was reported in September, 2012, six of the eight
cities who responded to our inquiry, offer dental
insurance to their retirees. Only one city (Wichita
Falls) provides any funding to the retiree cost for
coverage.

5. Background
Delta Dental Insurance Company has affirmed that they
will allow coverage in their plan for pre-65 and post-65
retirees.
The next 4 slides reflect current premiums, and 3
scenarios for retiree premiums.

6. Current Dental Premiums
Coverage Employee Cost/Month City Cost/Month
Employee Only $0 $15.22
Employee/Spouse $20.36 $15.22
Employee/Child $29.34 $15.22
Employee/Family $49.70 $15.22
(860 employees * $15.22 * 12 mo = $157,070)

7. Retiree Absorbs Entire Cost
Coverage Employee Cost/Month City Cost/Month
Employee Only $0 $15.22
Employee/Spouse $20.36 $15.22
Employee/Child $29.34 $15.22
Employee/Family $49.70 $15.22
Retiree Only $17.96 * $0
Retiree/Spouse $41.98 * $0
Retiree/Child $52.58 * $0
Retiree/Family $76.61 * $0
*premiums are 18% higher than total cost for active employees
(includes City cost and increase due to retiree status). There is no
increase to the City with this option.

8. City Absorbs Total Increase
Coverage Employee Cost/Month City Cost/Month
Employee Only $0 $16.74
Employee/Spouse $20.36 $16.74
Employee/Child $29.34 $16.74
Employee/Family $49.70 $16.74
Retiree Only $0 $16.74
Retiree/Spouse $20.36 $16.74
Retiree/Child $29.34 $16.74
Retiree/Family $49.70 $16.74
Employees and retirees pay identical premiums.
(860 + 500 covered * $16.74 * 12 mo = $273,197, for an increase
of $116,127)

9. Employees & Retirees Absorb Total Increase
City Absorbs Cost for Extra Lives Covered
Coverage Employee Cost/Month City Cost/Month
Employee Only $1.52 $15.22
Employee/Spouse $21.88 $15.22
Employee/Child $30.86 $15.22
Employee/Family $51.22 $15.22
Retiree Only $1.52 $15.22
Retiree/Spouse $21.88 $15.22
Retiree/Child $30.86 $15.22
Retiree/Family $51.22 $15.22
Employees and retirees pay identical premiums. Increased City
cost for 500 extra participants = $91,320.
($91,320 + $157,070 = $248,390)

10. Council Direction
Staff is seeking direction from the City
Council on whether or not to offer dental
insurance to retirees; and if so, which
premium scenario should be utilized.
If approved, dental coverage will be offered
to retirees during open enrollment later this
month, to become effective 1/1/13.