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~~ployee Bene~'it <br />Specialists <br />Elk River Municipal Utilities <br />Dental, Life & AD&D, and Disability <br />Proposal Results an Recornmenions <br />Prepared by David Markin agency <br />May 2a~0 <br />Introducti®n <br />In March 2010, David Martin Agency DMA} sent a request for proposal ~RFP}for Life, <br />AD&D, Dependent Life, Long Term Disability and Dental insurance to nine carriers two for <br />dental only}. ~f those carriers, seven carriers responded to the RFP. <br />Summary of Findings ~Assurant <br />only the incumbent carrier, Assurant, and a new carrier, MetLife, matched the current Long <br />Term Disability benefit of 66.67°/°. ether carriers quoted 60°/° of monthly earnings. This <br />option does represent significant savings, however it is not a viable option at this time. Elk <br />River Municipal Utilities may want to consider this option in the future. The reason that so <br />many carriers declined to quote 66.67°/° is because this benefit is not taxed; thus there is no <br />incentive for employees to return to work if they receive nearly all their taxable income <br />disabled, <br />Through negotiation with Assurant, DMA was able to reduce the initial increased renewal <br />rate of 15,13°/o down to a 7.16°/° increase. This reduced increase includes a change to the <br />dental plan, increasing the deductible from $25 to $50 per person or $l5 to $~ 50 per family <br />Amax}, Included in this negotiation was a hold for these rates until January 1, 2412 X19 <br />months}, Thus changing the renewal from June 1, to a calendar year renewal date of <br />January 1, to coincide with the medical and flex plan renewal dates, <br />Summary Findings a MetLife <br />MetLife gave two different proposals on the summary page. The first proposal guarantees <br />rates for one year on dental and two years on Life and LTD. The second proposal moves the <br />renewal rate date to January 1, 2012 X19 months} for dental and 2013 X31 months for Life <br />and Disability, Requesting the additional seven months greatly reduced Elk River <br />Municipal's savings from $4,123 to $831. However, this significant change in rates is <br />Contidentia! Page ~. <br />