5.2. ERMUSR 05-11-2010 - Laserfiche WebLink

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somewhat concerning and could be indicative of a higher renewal rate ance the rate guarantee has ended in 2012 and 2013. Also, please know that under the Long Term Disability LTD}Insurance contract, same disabilities that would be paid under Assurant may not be paid under MetLifie. This would be due to the difference in each carrier's definitions of `disability'. Frankly, Assurant may be more generous. MetLife's rates are contingent on three lines of business so the dental must be sold with the Life and Disability or the rates will be higher. An additional quote can be requested if desired for just Life and Disability. There is no conversion coverage for terminated employees this is not perceived as a big cancers as this benefit is usually not elected from terminated employees}, Regarding MetLife's dental plan, the network of providers is significantly smaller than Assurant's nearly halfthe size} and onlyfive ofthe top 35 Assurant providers were in MetLife's network. Claims will be paid at the 90t" percentile of UCR usual, customary and reasonable charges} when a member accesses care out of network. In addition, there is a reduced benefit level of 10°/° with the exception of preventive care, ~i.e. 80°/° for basic services instead of 90°/° and 50% far major services instead of 60°/°}, For those employees now accessing care from a network provider ion the Assurant Plan they not only have a higher benefit level, but they also get greater discounts and no balance billing for amounts over usual and customary. Since very few of MetLife's providers overlap those of Assuran~t's, more of the employees will be accessing care aut of the network or they would need to change dental providers. Conclusion and Rec~n~rr~endati~ns In conclusion, renewing with Assurant would cause the least amount of change for the employees. It would result in the increase in the dental deductible to $50l$150. I-lowever, the employees can continue with their current dental providers and receive the higher benefit level, There will be no change to the Disability or Life plans. [f Elk River decides to move their plan to MetLife, the company will save a significant amount of money. This is especially true if the renewal stays at a June 1 date. There would be fewer savings if a January 1 renewal date is chosen. This may be more disruptive for employees, as most will likely have to either change dental providers or receive a lower benefit level on services they receive when using an out Of network provider, There is also the riskthat an employee that may have qualified fora disability claim underAssurant may not under the MetLife definition of disability. v1le hope that our findings have satisfied your inquiries. Please let me know if there is any additional information needed. we value Elk River Municipal Utilities business and look forward to a long, beneficial relationship. Thank you for being a client! Canfidentiai Page 2