TO: Board of Supervisors
FROM: Christine Briceño, Chief Human Resources Officer
REPORT BY: Joy Cadiz, Staff Services Manager
SUBJECT: Self-Administered Rate for the Dental Program with Delta Dental
RECOMMENDATION
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Approve and authorize an increase to the County's self-funded Dental Program rate for employees and retirees, effective January 1, 2026. (Fiscal Impact: $187,000 Expense; Fund dependent upon Department usage; Budgeted; Discretionary)
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BACKGROUND
The County offers a self-funded PPO Dental Plan through Delta Dental. The County charges a premium amount to departments for each employee to fund a dental reserve from which the County pays claims and administrative costs. Because the County's PPO Dental Plan is self-funded, the County maintains a reserve in an internal services fund to pay claims and to respond to any fluctuations in total claim amounts.
The County has increased the self-administered rate over the last two years due to a negotiated agreement with the Public Services Employees union to provide enhanced dental benefits. Prior to the last two years, the rate over the past several years has decreased to reduce an overfunded dental reserve balance. After evaluating the dental fund balance this year, Human Resources requests that effective January 1, 2026, the County increase the self-administered rate that is charged to departments from $130.00 per employee or retiree per month, to $140.22 per month, which is an increase of 7.86%.
Requested Action:
Approve and authorize an increase to the County’s self-funded Dental Program rate to $140.22 per employee or retiree per month, effective January 1, 2026.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Departmental Budgets - Employee Group Insurance Premiums |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Increasing the self-funded rate will increase the County’s reserve in anticipation of the increase in claim payments. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Human Resources will re-evaluate the dental fund balance next calendar year to determine if further adjustments to the rate will be needed. |
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Consequences if not approved: |
The dental reserve fund will not be sufficient to pay the claims in the upcoming year. |
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Additional Information |
County Initiative: Elevate County Service and Workforce Excellence |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.