2009/10 Support Budget II

Uses of Revenue

2009/10 Dental Insurance Premium Increase, $2.7 Milion

The CSU Dental Program consists of the following two plans: Delta Dental PPO and DeltaCare USA. Each dental plan has varying levels of benefit coverage: Basic, Enhanced Level I, and Enhanced Level II. CSU collective bargaining unit agreements designate plan levels. In January 2009, Delta Dental PPO monthly premium rates will increase approximately 8 percent, and DeltaCare USA monthly premium rates will increase approximately 6.5 percent. The 2009/10 CSU budget plan includes $2.7 million to fund the increase in employer-paid dental costs resulting from this premium increase. Cost increases are based on the number of CSU employee participants by plan and level, and the difference between the old and new employer-paid premium rates. The following are changes in the plan rates from 2008 to 2009:

  2008 2009 % Change
Delta Dental PPO - Basic
Employee $26.95 $29.08 7.90%
Employee + 1 50.91 54.93 7.90%
Family 102.24 110.31 7.89%
Delta Dental PPO - Enhanced Level I
Employee $32.80 $35.39 7.90%
Employee + 1 62.05 66.95 7.90%
Family 127.89 138.00 7.91%
Delta Dental PPO - Enhanced Level II
Employee $40.59 $43.80 7.91%
Employee + 1 76.58 82.64 7.91%
Family 149.62 161.44 7.90%
DeltaCare USA - Basic
Employee $17.53 $18.64 6.33%
Employee + 1 28.92 30.75 6.33%
Family 42.75 45.46 6.34%
DeltaCare USA - Enhanced
Employee $23.29 $24.76 6.31%
Employee + 1 38.00 40.88 7.58%
Family 56.85 60.45 6.33%

The 2009/10 budget request funds permanent base costs related to January 2009 employer dental premium increases. The CSU plans to absorb approximately $1.35 million during fiscal year 2008/09 to fund the one-time costs related to the January 2009 dental premium increases for the six-month period from January-June 2009.