s
Department
Finance
Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
title
Request approval to renew existing contracts - Finance Department, 19-RFP060519C-MH, Employee Healthcare Benefit Plan - Dental with Aetna Life Insurance Company (Atlanta, GA) to administer: [1] Dental PPO (DPPO) Plan on a self-funded basis and [2] Dental HMO (DHMO) Plan on an insured basis, to eligible employees, retirees, beneficiaries and their covered dependents. This action exercises the fourth of four renewal options. No renewal options remain. Effective dates: January 1, 2024 through December 31, 2024. (APPROVED)
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Requirement for Board Action (Cite specific Board policy, statute or code requirement)
In accordance with Purchasing Code Section 102-394(6), the Purchasing Department shall present all renewal requests to the Board of Commissioners at least 90 days prior to the contract renewal date, 60 days if the contract term is six (6) months or less.
Strategic Priority Area related to this item (If yes, note strategic priority area below)
Open and Responsible Government
Commission Districts Affected
All Districts ☒
District 1 ☐
District 2 ☐
District 3 ☐
District 4 ☐
District 5 ☐
District 6 ☐
Is this a purchasing item?
Yes
Summary & Background (First sentence includes Agency recommendation. Provide an executive summary of the action that gives an overview of the relevant details for the item.)
Scope of Work: Aetna administers the self-funded dental PPO and the fully insured dental HMO plans for active employees, retirees/beneficiaries, and their eligible dependents. Under a fully insured arrangement, the carrier pays claims from their own funds and sets premium rates to support expected payments. While under the self-funded arrangement, the carrier administers the plan, but claims are funded by the County. These contracts provide dental plan administration, claims adjudication, standard reporting, and customer service. Aetna will continue to provide $25,000 in annual wellness allowance. Aetna’s offering continues to provide the best overall value in terms of choice, provider access and cost both for the County and its members.
Community Impact: None.
Department Recommendation: The Finance Department recommends renewal of existing contract with Aetna to administer the Dental PPO and HMO Plans for the 2024 plan year. There is a 2% increase to the administrative fee for the self-funded Dental PPO plan, increasing from $1.80 to $1.84 per enrollee per month. The 2024 Dental HMO and Dental PPO premium rates are presented as a separate agenda item for approval.
Project Implications: None.
Community Issues/Concerns: None.
Department Issues/Concerns: None.
Contract Modification
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Current Contract History |
BOC Item |
Date |
Dollar Amount |
|
Original Award Amount |
19-0620 |
8/7/2019 |
Dental PPO: Per enrolled employee or retiree per month admin fee. Dental HMO: Per enrolled employee or retiree per month, according to approved rates by coverage tier. |
|
1st Renewal |
20-0840 |
11/8/2020 |
Dental PPO: Per enrolled employee or retiree per month admin fee. Dental HMO: Per enrolled employee or retiree per month, according to approved rates by coverage tier. |
|
2nd Renewal |
21-0647 |
9/1/2021 |
Dental PPO: Per enrolled employee or retiree per month admin fee. Dental HMO: Per enrolled employee or retiree per month, according to approved rates by coverage tier. |
|
3rd Renewal |
2022-0605 |
9/2022 |
Dental PPO: Per enrolled employee or retiree per month admin fee. Dental HMO: Per enrolled employee or retiree per month, according to approved rates by coverage tier. |
|
4th Renewal |
|
8/16/23 |
Dental PPO: Per enrolled employee or retiree per month admin fee. Dental HMO: Per enrolled employee or retiree per month, according to approved rates by coverage tier. |
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Total Revised Amount |
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Contract & Compliance Information (Provide Contractor and Subcontractor details.)
(1)
Contract Value: $1.84 per enrollee per month administrative fee.
Prime Vendor: Aetna Dental PPO (DPPO)
Prime Status: Non-Minority
Location: Atlanta, GA
County: Fulton County
Prime Value: $1.84 per enrollee per month administrative fee.
(2)
Contract Value: Per enrollment in accordance with the approved Dental HMO rates.
Prime Vendor: Aetna Dental HMO (DHMO)
Prime Status: Non-Minority
Location: Atlanta, GA
County: Fulton County
Prime Value: Per enrollment in accordance with the approved Dental HMO rates.
Total Contract Value: $1.84 per enrollee
Total Certified Value: $0.00
Exhibits Attached (Provide copies of originals, number exhibits consecutively, and label all exhibits in the upper right corner.)
Exhibit 1: Contract Renewal Agreement
Exhibit 2: Contract Renewal Evaluation Form
Exhibit 3: Contractor Performance Report
Contact Information (Type Name, Title, Agency and Phone)
title
Ray Turner, Deputy Finance Director (404) 612-7737
Verna Thomas, Benefits Manager (404) 612-7639
Contract Attached
title
Yes
Previous Contracts
title
Yes
Total Contract Value
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Original Approved Amount: |
Dental PPO: Per enrolled employee or retiree per month admin fee. Dental HMO: Per enrolled employee or retiree per month, according to approved rates by coverage tier. |
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Previous Adjustments: |
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This Request: |
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TOTAL: |
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Grant Information Summary
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Amount Requested: |
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☐ |
Cash |
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Match Required: |
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☐ |
In-Kind |
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Start Date: |
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☐ |
Approval to Award |
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End Date: |
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☐ |
Apply & Accept |
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Match Account $: |
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Fiscal Impact / Funding Source
Funding Line 1:
426-999-P003-1560: Group Insurance Stabilization, General Fund, Administrative
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Key Contract Terms |
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Start Date: 1/1/2024 |
End Date: 12/31/2024 |
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Cost Adjustment: |
Renewal/Extension Terms: No renewal options remain |
Overall Contractor Performance Rating: 88%
Would you select/recommend this vendor again?
Yes
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Report Period Start: |
Report Period End: |
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1/1/2023 |
6/30/2023 |