TO: Executive Board
Council Leaders

FROM: Deborah Stayman and Lorraine Simpkins

DATE: October 27, 2000

RE: Dental Contract Awarded

The State has announced that a new contract for administration of the New York State Dental Program will be awarded to GHI, the current vendor, effective January 1, 2001. This is not the outcome PEF was seeking. Based on members' dissatisfaction with the level of service GHI provided, PEF fought long and hard to have the program put out to bid. We felt certain that a higher level of service could be obtained from a different vendor. Unfortunately, the award of the bid to a different vendor was not to be.

Everyone involved in the bidding process, including PEF Joint Committee on Health Benefits members and staff, was required to sign a confidentiality statement which places stringent limits on the release of information about bids. Therefore, we are not permitted to disclose details about the bidders or their proposals.

However, there are several points to be made. For the first time, GHI will be required to meet performance guarantees set forth in the new contract. Failure to meet the performance guarantees will result in financial penalties. In addition, GHI plans to move their service center for the dental program to Albany from New York City to increase staff retention and improve customer service. Furthermore, GHI plans to implement a fee schedule increase for selected procedures in January 2001. Because non-network provider reimbursement is based on the network fee schedule, reimbursement for selected procedures performed by non-network dentists will also increase.

The PEF Joint Committee on Health Benefits will meet with GHI, the Department of Civil Service and the Governor's Office of Employee Relations to inform GHI about our expectations for their performance under the new contract. As always, we will monitor the level and quality of services provided to members, and advocate for anyone who does not receive the benefits to which he or she is entitled.

cc: PEF Staff