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HomeMy WebLinkAboutItem 14 - Dental Plan MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: JULY 20, 2021 SUBJECT: APPROVAL TO RENEW DENTAL PLAN ADMINISTRATIVE SERVICES AGREEMENT RECOMMENDATION: City Council to consider approval to renew contract for Third-Party Administrative Services with CIGNA for the City's self-funded Dental Plan. FUNDING SOURCE: Funds are available in General Fund (Insurance) in the estimated annual amount of$23,000. BACKGROUND: The purpose of this contract is to establish annual pricing for third-party administration (TPA) for the City's self-funded Dental Plan. The TPA processes and pays dental claims on behalf of the City and provides access to network discounts. They also provide monthly education about dental health to our members. CIGNA's network includes 151,000 providers nationally of which 42 providers are located in Grapevine. CIGNA processes about 2,100 claims annually for the City's dental plan. CIGNA has agreed to a three-year contract with no rate increase. CIGNA has provided these services to the City in the past with successful results. Staff recommends approval.