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Home My WebLink AboutTR-67-99 ON, TR.67.98 t THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Report #: TR-67-99 FILE #: File #50h })!5tJ/f}t.... Res. #G/II-S:3;)-'ij By-law # Meeting: General Purpose and Administration Committee Date: November 1 5 1999 Subject: TRANSFER OF DENTAL COVERAGE Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-67-99 be received j 2. THAT staff be directed FORTHWITH to transfer dental coverage for all Municipal employees from Cia rica to Liberty Health with an effective date of December 1, 1999. BACKGROUND Metropolitan Life's Canadian operations were purchased by Mutual Life of Canada earlier this year. At that time Municipal Staff asked our consultants Mosey & Mosey to review the dental coverage to ensure that the coverage was equal to or better than that provided by Metropolitan Life. Mosey & Mosey confirmed that a number of coverage codes were dropped and Mutual was not willing to include them for any claims after they had purchased Metropolitan Life. In July 1999 Mutual Life changed their name to Clarica. Although there would be savings for the Municipality to convert all policies to C1arica, according to the review by Mosey & Mosey, the coverage is not equal to or better than the existing plans, and as such this option is not recommended. Staff requested Mosey & Mosey to contact Liberty Health to find out if they would provide dental coverage equal to or better than that formerly provided by Metropolitan Life. They assured Mosey & Mosey that they could provide the coverage required. 801 REPORT NO.: TR- 67-98 PAGE 2 Mosey & Mosey stated that we would have an annual savings of approximately $14,000 per year due to the consolidation of dental and extended health benefits with Liberty Health. Attached is a letter (Attachment #1) from Kevin Ashe of Mosey & Mosey stating his recommendation to change our dental carrier from Cia rica to Liberty Health. Also, if the Dental and Extended Health benefits are with the same carrier the Municipal Employees would find it easier to process claims. Mosey & Mosey have said that the benefit booklet produced by Liberty Health is easier to understand than the current benefit booklet. Cia rica requires thirty days notice prior to cancellation of benefit coverage, and they have been notified that, subject to Council confirmation, the change will take place effective December 1, 1 999. Respectfully submitted, Reviewed by, n mWu, Chief Administrative Officer. 1r MM*JF*ls Attachments 802 :16 Facsimile Cover Sheet To: Company: Fax: Date: Pages incl. Cover: Re: Comments: 135-831-2576 M&M Attachment III Mosey Mosey Kevin Ashe Vice President, Marketing and Sales Mosey & Mosey Benefit Plan Consultants First Pickering Place, 1550 Kingston Rd, Suite 211 Pickering, Ontario LIV lC3 Telephone: (905) 831-2571, Toll Free: 1-800-373-6488, Fax: (905) 831-2576, E-mail: mosey@idirect.com Jackie Forsey/Marie Marano Municipality of Clarington 6234169 October 26, 1999 6 Benefit change Should you have any questions, please call. NB: lfall pain ar'e not rec:elnd or ue undl'ar, pleue COfltllct our om~e. the Information in tbb fax pri,.ileged and coaOden.ial. It is int(nded for .he un of the addnssee IJn'y. If you ha\"e' 1'Keind thit fax In ern:rr. pleale C9ntw.Ct the ,endu. 803 1U/26/1999 15:16 905 831 2576 ....~L.,~M .-.... ..'...........'.. ' ,':.:.,:'~.:.'.;'~'I.) "." .,.(,' PAGE 02 Mosey(~{Mosey October 26, 1999 p.~IUr,'" r;.~f~'''i,',. M (iIIM"'"r p".':i: ___(,t.,!, Marie Marano Treasurer Municipality of Clarington 40 Temperance Street BowmanvilIe, Ontario LlC 3A6 Re: Benefit Costings/Consolidation Dear Marie: Further to our recent meeting, please find enclosed a spreadsheet illustrating the savings as a result of consolidating under one carrier. As per your instructions, we approached both of your current carriers with a view to ascertain the savings available should the Municipality consolidate all the benefits with one carrier or the health and dental with one carrier. Currently, Clarica (MutuallMetropolitan Life) underwrite the Life, Dep. Life, L TO and Dental benefits. Liberty Health underwrite the Out of Province and the Health benefits. The spreadsheet is set out as follows: Cu....ent Based on April billing volumes and rates of existing carriers: Current pooled premium $11,165.17 Current Health and Dental premium $42,532.58 Clades Option Rates based on all business being underwritten by Clarica: Current pooled premiwns would not change at $11,165.17 Health and dental premiums would reduce to S41 ,351.50 Annual savings of$15,299.28 (incl PST) Libert)' Health Option Rates based on all business being underwritten by Liberty Health: Current pooled premium would increase by $13,322.61 Health and dental premiwn would reduce to $41,431.26 G;, lA ~\.1i:<sisnug:t.. P.oil.tl, Ml3~is3auS1-' Ontario L5N lAG tot~ 905 826.8390 fax; 905 826.6657 toll ft~ 1-800-268-8)09.3- -Fint Pickering rla.ce:, Unit 211. ~55Q KiogstQt1. Road) Pickuing:. OntariC'l LlV lC3 td; 9Q5- 831.2571 ~: 9Q5 831.2576 toll free: 1-800-373-6488 804 1~/L6/1999 15:16 905 831 2576 M&M PAGo. ~" Annual total premium would increase to S54,753.87. An annual increase of$14,206.45. Annual savings if Liberty Health awarded Health and Dental only is $14,273.11 Liberty Health L TO quotation generates significant increases to your current costs and as a result, we recommend you not consider this option. This position taken by Liberty Health can be attributed to their relatively new entrance to the L TD marketplace. Public bodies typically have poorer claims experience and Liberty Health has taken a very cautious approach to public sector L TD business to date. This position eliminates any consideration of awarding all the benefit lines to Liberty Health. Based on the enclosed findings, consideration must be given to consolidating your health and dental coverages under one carrier. Savings as a result of this initiative would be at least $14, 273 with Liberty Health and $15,299 with ClaDca, The recent conversion from Metropolitan Life to Mutual Life (now Clarica) has not been as smooth as transition as promised resulting in disruption to the Municipality's employees. In addition, Clarica has not been able to duplicate the provisions of the former Metropolitan Life contract. As a result, it is our recommendation that the Dental benefit be awarded to Liberty Healtb effective December 1. We do so for the following reasons: -Liberty has waived their fee for on line benefits administration -The Municipality will have on line capability to add and delete coverage, thus resulting in having up to date data base. This will allow the avoidance of potential ineligible claims being paid. -The on line capability will allow the Municipality's Personnel staff to have immediate response to claims and eligibility issues. -Employees will benefit from a single booklet for Health and Dental coverages. They are less likely to be confused over claiming procedures when there is a single carrier. In respect to the Liberty Health rates, the current rate change for EHC is Aprill, 2000. Should the dental change be effective on December I, 1999 the quoted rates will be guaranteed for 16 months to April I, 2001. I have also enclosed nine month claims e;<perience for Liberty Health. The trends are positive with the plan operating at an acceptable loss ratio. 805 l~/Lb/l~~~ l~:lb ~~~-I:L.:H L~ Ib M&M Should you have any questions, or require my attendance at a Committee to discuss our recommendation, please do not hesitate to call. Sincerely ;;L~, 806 PAGe. 114 10/2&/1999 15:1& 905 831 257& M&M fJAC;iI:. tJ~ . Current Clarica Liberty Bendlt Volume Rate Premium Rate Premium Rate Premium Life 17,462,000 .26 $ 4540.12 .26 $ 4540.12 .26 $4540.12 Dep. Life 151 3.16 $ 477.16 3.16 $ 477.16 3.16 $ 477.16 LTV 1&2 225,634 1.50 $ 3384.51 1.50 $ 3384.51 1.81 $ 4083.97 3 115,474 1.38 $ 1593.54 . 1.38 $ 1593.54 2.39 $ 2759.82 4 31,312 1.09 $ 341.30 1.09 $ 341.30 2.45 $ 767.14 5 78,909 1.05 $ 828.54 1.05 $ 828.54 .88 $ 694.40 Sub-TotoJ $11,165.17 $11,165.17 $13,322.61 EHe S 24 57.39 $ 1377.36 56.57 $ 1357.68 56.57 $ 1357.68 F 150 142.50 $21375.00 140.45 $21275.00 140.45 $21375.00 S 4 56.52 $ 226.08 55.71 $ 222.84 55.71 $ 222.84 F 30 139.18 $4175.40 137.18 $ 4115.40 137.18 $411 5.40 Out a/Prov. S 28 1.50 $ 42.00 .88 $ 24.64 1.50 $ 42.00 F 180 3.00 $ 540.00 1.76 $ 316.80 3.00 $ 540.00 ReJiree S 0 10.42 S 4.40 $ 10.42 $ F 2 20.81 S 41.62 8.80 $ 17.60 20.81 $ 41.62 Dental 1.2.3,6 &7 S 19 26.61 $ 505.59 25.46 $ 483.74 24.77 $ 470.63 F 136 78.98 $10741.28 74.45 $10125.20 73.53 $10000.08 4 S 5 26.61 $ 133.05 26.44 $ 132.20 24.77 $ 123.85 F 14 80.35 $ 1124.90 75.76 $ 1060.64 74.80 $ 1047.20 5 S 4 24.75 $ 99.00 23.69 $ 94.76 23.04 $ 92.16 F 30 71.71 $ 2151.30 67.50 $ 2025.00 66.76 $ 2002 80 Sub-totol: J42,532.58 $41,351.50 $41,431.26 Grand Total: $53,697,75 $52,516.67 $54,753.87 , , - a.led on April 1.1999 Volume md b.~$ , : 807 10/2&/1999 15:1& 905 831 257& M&M . Municipality of Clarington Experience Report for the period of December 1, 1998 to August 31, 1999 Group Number: 37371 ~~~rfijl{rtt4f!:ffT-iJ!ft'Il~~~~:t~rr~?~WRf.~r;~~ ,~~-/I~il!l.Jll ;"f&f> -~~ ~l {T~* .'::l:i~:If ~r~l~ 'fj ~:t- :f,~.! life/: ~,#,~~j;.~ ~._-",,~:,,--:'tC'">-""'Jl' .-;><a=~~i.s.~"'" -tj- ~~~- ~~--.- -it-: '""c--J -#'.4'- ""f!:,~i,d;-!' ",' ",,'''_c_~~__" ,. _"", ,"'-c,",it-C' "'" ,J"",_.",~ ___x- -, ~ II - ~-"""",- -~t:.:-il' ,~ "_. :.l; g.: ""';>> :' ~-;;-~~':'l'~jII':i:i$: ~..f.~~~",~ ..;~;"-~~~~ '.JF'",- d-=1!'7~ ~#':5'J,--~- 32.:- ~*'_- a-pi:t'~"~' Municipa/1Iy of C/aringron 37371 E extended Health $ 60,933 $ 48,534 79]% G Extended Health $ 69,714 $ 58,278 : 83.6% J Extended Heaffh $ 18,918 $ /1,205 59,2% R Extended Health $ 46,466 $ 33,740 72.6% S Extended Health $ 32,878 $ 26,502 80.6% T Extended Health $ 7,691 $ 4,996 65.0% F Extended Health $ 1,259 $ 2,826 224.5% TOTAl. $ 237,859 $ 186,081 78.2% 808 PAGE 0& \ LIBERTY HEALTH,"