MEMORANDUM

DEC 12 1977

Mayor and Council December 2nd, 1977

L.D. Pollock
City Administrator

Re: M.S.A. Dental Coverage

We have received notification of new rates that will apply for Dental Plan
Coverage for 1978. We are under Contract with Medical Services Association
and they have forwarded a Renewal Rider covering the following rates:

Single Rate Family Rate

Old Rate — «$7.86 $19.82

New Rate 8.56 21.60

The increase is therefore 70 cents per month for single individuals or
$1.88 per month for a family, representing approximately a 9% increase
in rates. The City pays 50% of this increase.

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As Council is aware, these prepaid plans must maintain sufficient rates

to keep the plan in operation. The plan has been in operation since January
of 1974 and at the end of this year it is still in a deficit position of
approximately $9,000. . This increase in rate is therefore necessary.

I would recommend to Council that the Renewal Rider with Medical Services
Association be approved.

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L.D. Pollock