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Commissioners endorse moving dental benefit to self-funded model after 50% MetLife rate increase
Summary
MetLife proposed a near-49% increase for dental; staff recommended moving to Delta Dental options or a self-funded dental arrangement, and commissioners indicated support to pursue a self-funded dental program with an initial cushion.
Benefits staff reported that MetLife—s renewal proposal included a 48.98% increase for dental and that the county instead received Delta Dental proposals with lower increases. The presenter said, "MetLife... came in with a 48.98% increase. So 50% increase, basically. Uh-huh. So I don't think that's an acceptable amount. So we did automatically put that out the bid."
Staff presented Delta Dental PPO options; the most network-rich option (PPO program A) quoted a 27.67% increase. Staff also described a self-funded dental option: under that model the county would pay an administrative fee (noted as $6 per member per month in the presentation), pay claims out of a county-administered fund, and retain any surplus. Staff estimated that initial self-funded pricing would likely start higher (staff said roughly 34% in their modeling) to create reserve padding in the first year but could stabilize and produce savings in subsequent years.
Why it matters: staff said dental vendors commonly bid low to win business and then raise rates in subsequent renewals; a self-funded approach would let the county retain surpluses and reduce frequent network/provider churn for employees. Staff noted the annual per-person dental maximum is $3,000, which caps exposure on a per-person basis and reduces the risk of extremely large claims.
Decision and next steps: commissioners expressed support for moving toward a self-funded dental model. Staff said they will work with GBS (benefits consultant) to establish suggested rates and start-year assumptions and will return with detailed rate proposals and implementation steps. Staff flagged that the first year of a self-funded dental plan often requires building reserves and that final proposed rates will be set after GBS modeling.
Financial details cited in discussion: MetLife renewal 48.98% increase; Delta Dental PPO option 27.67% increase; self-funded starting estimate ~34% (to include a reserve); $6 per-member monthly administration fee for a self-funded contract; per-person annual dental maximum $3,000.
