Sponsor: Human Resources
Title
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Agreement with Metropolitan Life Insurance Company for Employee and Retiree Dental Insurance Plans
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Recommendation
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1. Approve the agreement with Metropolitan Life Insurance Company, 200 Park Avenue, New York, NY 10166 for dental insurance services for the period upon execution to December 31, 2026 and may be renewed for up to two additional one-year periods.
2. Authorize the Chair and Chief Clerk to execute the agreement.
3. Authorize the County Manager to enter into agreement and execute amendments to the agreement in accordance with the county’s procurement policies and procedures, in a form approved by the County Attorney’s Office.
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Background and Rationale
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Ramsey County provides dental insurance to approximately 5000 employees, retirees, spouses and children. Providing market competitive coverage and plans attracts and retains employees. Every three to five years, the county issues a solicitation for dental insurance in compliance with state law and to ensure the best options are provided to employees at a competitive price. The current five-year contract for dental insurance ends December 31, 2023. More information on the solicitation process was presented to the Ramsey County Board in a workshop on June 6, 2023 <https://ramseycountymn.legistar.com/LegislationDetail.aspx?ID=6263666&GUID=80723E6B-6C2A-4FC4-AFD5-2B4E9A586219>.
Human Resources issued a competitive solicitation for dental insurance for eligible employees and retirees under age 65 (Early Retirees) beginning January 1, 2024 for up to five years as the previous contract expires December 31, 2023. In anticipation of the solicitation, the Joint Labor Management Insurance Committee established consensus goals as follows:
• Offer competitive, equitable benefits and choice to attract and retain employees
• Provide additional plan and enrollment tier choices with meaningful premium differences
• Manage cost and viability in the long term and keep pace with inflation
• Align with the county's strategic Racial Equity priority
Retirees are eligible to participate in the plan only if they carried dental coverage as an active employee at the time of retirement and continue it into retirement.
Competitive solicitation summary:
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Request for Proposals (RFP) |
Dental Insurance |
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RFP Release Date |
January 11, 2023 |
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RFP Response Date |
February 14, 2023 |
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Contractors Notified |
169 |
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Respondents |
Blue Cross Blue Shield of MN, Delta Dental, HealthPartners (incumbent), Humana, MetLife |
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Proposal Evaluation Committee |
Benefits Manager, Benefits Supervisor, Labor Relations Manager, Sr. Business Analyst, Chief Financial Officer, Racial and Health Equity Administrator, Deloitte Consulting |
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RFP Evaluation Criteria |
Background, Plan Administration, Implementation, Cost and Presentation |
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Contractor Recommended |
Metropolitan Life Insurance Company |
Ramsey County currently offers two dental plans with two enrollment tiers, single or family. The solicitation requested fully insured proposals for existing and alternative plans with two additional enrollment tiers (Employee + Spouse and Employee + Child(ren). Based on the evaluation committee’s selection, Human Resources recommends Metropolitan Life’s fully insured proposal for two plans (Select and Open) with 4 enrollment tiers (Single, Employee + Spouse, Employee + Child(ren), Family). Total monthly premium will remain the same for 2024 and 2025. A rate cap of 7% was provided for 2026. Market competitive plans and additional enrollment tiers provide choice and premiums that reflect changing employee priorities over time.
Plans and Total Monthly Premiums Current and 2024
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Current |
2024 Select Plan |
2024 Open Plan |
|
Single |
$46.02 |
$41.28 |
$32.76 |
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Employee + Spouse |
$102.58 |
$59.53 |
$56.87 |
|
Employee + Child(ren) |
$102.58 |
$79.26 |
$75.72 |
|
Family |
$102.58 |
$116.46 |
$111.26 |
The Evaluation Committee’s selection was reviewed with the Joint Labor Management Committee on July 13, 2023. The Joint Labor Management Committee did not reach consensus on the recommendation. Labor representatives chose to abstain on the Evaluation Committee’s selection and requested inclusion in scoring future solicitations.
Bargaining unit negotiations and subsequent county board action will determine the county contribution to total monthly premiums. Retiree county contribution will continue to be subject to previous county board resolutions.
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
Once approved, this action will further the county’s efforts at providing a sustainable, long-term benefits strategy that recognizes cultural differences and supports employee well-being. The county’s employee workforce currently reflects a population where 40% are identified as racially and ethnically diverse. Diversity continues as a critical component of a comprehensive and well-balanced benefits program.
Community Participation Level and Impact
This action is strictly operational and internal facing. The residents of Ramsey County do not participate in the evaluation of or decisions regarding the county’s employee benefits program.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Sufficient funding is included in the proposed 2024-2025 County Manager’s budget to fund this contract.
Last Previous Action
On June 6, 2023, the Ramsey County Board held a workshop on 2024 Employee Benefits Procurement Process.
On August 21, 2018, the Ramsey County Board approved an agreement with HealthPartners for active employee and early retiree medical insurance contract. (Resolution B2018-228).
Attachments
None.