County of Sonoma. Long-Term Disability (LTD) RFP. RFP Results Presented to the JLMBC on April 19, 2012

Transcription

1 Distributed to JLMBC on April 19, 2012 County of Sonoma Long-Term Disability (LTD) RFP RFP Results Presented to the JLMBC on April 19, 2012 Copyright 2012 by The Segal Group, Inc., parent of The Segal Company. All rights reserved. # v2

2 The Proposal Process RFP Issued The County issued the LTD RFP assisted by The Segal Company in January of 2012 Proposals were requested with a June 1, 2012 effective date 3-year minimum rate guarantee was requested, with the option to provide up to 5 years Companies that received solicitations for the RFP: Cigna Cook & Associates David Block Dublin Guardian Hartford ING Klohe Financial-Insurance Group Mac Donald Insurance Services MetLife Mutual of Omaha Principal Prudential Reid Loveland Insurance Services Standard (incumbent) SunLife Unum 1

3 The Proposal Process - Respondents Only 3 companies submitted Proposals Hartford Prudential Standard (incumbent) Reasons from vendors for declinations Too busy Mac Donald Insurance Services Funding Options requested (Participating contract) Guardian ING MetLife Mutual of Omaha Longevity with current incumbent, not likely to move Guardian No Reason Provided All Others 2

4 The Proposal Process - Evaluation All 3 Respondents were interviewed at the County offices on March 7, 2012 Evaluation Committee County Representatives Terilynn Bench, Leave & RTW Manager Dusti Mason, Disability Analyst Union Representatives Andre Bercut, DCSS - SEIU Lou Maricle, ISD - SCAMC All 4 Evaluators were unanimous in their recommendation of the winning bidder The Standard Insurance Company Savings procured from the current terms ($1.00/$100 Payroll) $696,000 per year (based on static enrollment) ($0.66/$100 Payroll, or -34%) $2,088,000 over the 3-year rate guarantee Rate guarantee may be extended 2 more years if the plans experience meets certain parameters 3

5 Executive Summary The County of Sonoma and The Standard have been partnering on our LTD plan since The Standard is familiar with the County s LTD benefits program, policies and processes, and has fostered a good working relationship with the County employees, staff and labor representatives. The Standard has provided outstanding customer service. Proven, dedicated and proactive philosophy that focuses on personal, compassionate, responsive service and expert claims management/administration. The Standard has committed to providing the same designated account team. Dedicated, toll-free number for employees to use when reporting and inquiring about their claims. 4

6 Executive Summary The Standard has added options to our current policy provisions at no additional premium which include: Longer RTW incentive of 24 months Longer 90-day temporary recovery provision 10% rehab benefit Dependent education benefit Increased the survivor benefit payment The Standard is experienced in the Public Employer market: Public-sector experience: 60+ years Average tenure of large groups: 10+ years Number of covered lives: 7.5 million Number of public employers insured by The Standard nationally: 4,600+ Number of public employers insured by The Standard in CA: 1,355 Number of county contracts insured by The Standard: 291 Number of county contract insured by The Standard in CA; 28 5

7 Executive Summary Experience Rating Refund Agreement with a Claims Fluctuation Reserve (CFR) Account has provided the County with: Reduced retention expenses Rate stabilization Interest earnings on funds on deposit in the CFR account Agreement to provide the required reports to ensure the County receives the data necessary to effectively manage the LTD program. The Standard will continue to collaborate with the County in administering the LTD program to manage disabilities and to help employees who have filed a claim to return to work as soon as medically feasible. The Standard is the current carrier. This means no disruption to employees and benefits to employees due to the elimination of a vendor transition. 6