EMPLOYEE BENEFITS CONSULTING SERVICES

Transcription

1 County Executive Steven R. Schuh RFP No R EMPLOYEE BENEFITS CONSULTING SERVICES ADDENDUM NO. 2 June 7, 2016 TO ALL BIDDERS: PLEASE NOTE THE FOLLOWING: CHANGES: In section Bullet #4 Medicare D Attestation shall be removed from this RFP. QUESTION: 1. Will County consider proposals from firms that provide a fixed monthly retainer fee versus billable hours? If so, will these proposals receive a lower rating? ANSWER: No. Work will be reimbursed by billable hours as required. 2. What is the current total fees/compensation paid the County s consultant? ANSWER: FY 13 - $227,860 FY 14 - $140,819 FY 15 - $384,950 FY 16 - $30,739 YTD 1

2 3. What interaction/involvement do the 12 union groups have with the benefits programs? What level of services does County require from the benefits consultant in working with the union groups? ANSWER: The benefits consultant does not provide any level of services directly to any of the union groups. The union groups have minimal interaction/involvement with the benefit programs, usually limited to having one of the union representatives sit on a RFP selection committee for active group plan evaluation and selection. 4. What interaction/involvement do the covered pooling entities, listed on page 11 of this RFP, have with the benefits programs? What level of services does County require from the benefits consultant in working with these entities? ANSWER: The pooling entities all participate in the County Group Medical Plans with the same plan design. All level of services for the pooling entities is provided through the County as the lead provider. The Consultant might be asked by the County to assess the risk and increased cost/savings of expanding the pooling entities, or the effect of limiting plan offerings on risk and increased cost/ savings. 5. With the other entities covered under the County s healthcare plan, can you explain the pooling agreement arrangement and how underwriting, rates, and experience tracking is done? ANSWER: The pooling agreement arrangement is authorized by both County Code and the State Code Insurance Article that allow participation. The County includes all the entities claims experience/ claims data along with census information obtained from the vendors in the County aggregate experience to set rates under the self-insurance program for the entire County. The 2

3 established County rates are passed along and charged to the pooling entities similar to an insured product. 6. What is total number of members enrolled in the County s healthcare plans, including all entities? ANSWER: 17, Does County currently have prescription drug services carved-out with Caremark PCS Health? If so, was it purchased directly or through a coalition, consortium, or purchasing group? Please explain. ANSWER: The County drug services are carved out through Caremark PCS Health. It was bid directly by the County and not purchased through a coalition, consortium, or purchasing group 8. Does County purchase individual and aggregate stop loss reinsurance? Please explain and provide general contract terms and limits. ANSWER: The County does not currently purchase individual and aggregate stop loss reinsurance. 9. Under section of your request, please clarify the following: Offeror shall provide any alternative ways to fund projects other than from County funds for the Successful Offeror s work. ANSWER: This would be to potentially fund projects through alternative/ additional sources of funds that may be available to the successful offeror. This could be through government research grants, foundation research studies, and joint projects with other entities or any other funding mechanism that may subsidize and/or reduce the costs to the County. 10. Is County considering private healthcare exchange options? If so, please explain. 3

4 ANSWER: Not at the present time. However, consideration has been given to Medicare Exchange options for retirees in the past. 11. When were voluntary plans offered? Do all entities purchase voluntary? What voluntary plans are offered and what is approximate participation? ANSWER: Voluntary plans have been offered at least since Voluntary plans are not purchased by the pooling entities and they are not authorized to participate. County employees may purchase the contracted/authorized benefits directly from the voluntary benefit provider with the County withholding the payroll deduction. The Voluntary benefits are Short term Disability, Long term Care, Universal Life with Long Term Care Rider and Legal Benefits Plan. The combined enrollment for all plans is approximately Can County expand on the description of services required in providing consulting services related to the defined benefit and defined contribution plans, portfolio analysis, and retirement benefits, listed under Primary Scope of Work on page 12 of your request? ANSWER: The Defined Benefit Plan refers to all the County health offerings as currently provided and would include all the consultative services as outlined in the RFP. The County is contemplating the establishment of a new 401A Defined Contribution Retirement Plan. The consultant would be responsible for assisting the County with the establishment of a health benefit component under this offering. Financial portfolio analysis consists of the review of a vendor s financial capabilities, strength, stability and overall financial health when evaluating RFPs, ongoing contract management and exercising renewal options. The consultant would review and evaluate carrier ratings, administrative fees, plan offering options, 4

5 discount allowances, performance guarantees, fiscal management and fiscal processing/operations procedures, etc. Retirement benefits refer to consulting services for retiree health benefits. The consultant would advise on available options for pre- 65 and Medicare eligible retirees that best meet the needs of the county and its retirees. This would include the full range of consultative services as outlined in the RFP for the provision of retiree health benefit plans. 13. If consulting firm submitting a proposal has expertise in GASB/OPEB, but outsources the GASB/OPEB actuarial work, will their proposal receive lower scoring or will a proposal be rejected for not meeting the Pass/Fail requirements outlined in section of your request? Please explain. ANSWER: OPEB Valuation is not a requirement of the RFP, but GASB/ OPEB consultative expertise is. Therefore, GASB/ OPEB actuarial valuation work would not trigger a rejection of the Pass/ Fail requirement. 14. Is County requesting the consultant to conduct a dependent audit listed under of your request? ANSWER: Not at this time. However, it could be a task requested sometime within the contract term. 15. Under section , it states, The Successful Offeror shall review the County s health insurance pool to analyze potential larger group purchasing power minimizing fiscal risk to the County. This includes the effect of pooling entities dropping out or entering. Also, under section , it states, The Successful Offeror shall assist the County in expanding the use pool, specifically by recommending ways the County can coordinate with other governmental agencies and entities to achieve favorable pricing and joint use 5

6 of administrative processes. Is County asking selected consultant to evaluate the feasibility of the County joining or forming a larger a consortium or group purchasing coalition, which may include entities not currently covered under your healthcare plans? Please explain. ANSWER: That is correct. The County may ask the selected consultant to evaluate the feasibility of the County joining or forming a larger consortium or group purchasing coalition, which may include entities not currently covered under our healthcare plans. It may also include coordinating with other governmental entities to achieve favorable pricing and joint use of administrative processes by expanding the pool of participants. 16. We do have a question regarding the Business Associate Agreement requirements outlined in your request. While Wells Fargo would provide limited information on the manner in which it maintains the confidential information of third parties, just as Wells Fargo would not permit third parties to conduct on-site inspections/audits of Wells Fargo s records and information due to bank privacy laws, Wells Fargo would not permit access to third parties of Wells Fargo s facilities for purposes of reviewing its information security arrangements. Please explain if this is an issue in considering our proposal. ANSWER: This is the County s HIPAA agreement stating that you will keep the County s information confidential and is mandatory. This Agreement will need to be signed. 17. Please clarify Rx benefit option(s) and Administration for Medicare retirees? ANSWER: RX benefits for retirees are carved out under CVS/ Caremark through their SilverScript Division. It is an EGWP plus Wrap for RX benefits. 18. Section reference to Medicare Part D Actuarial Attestation is that required under AAC s EGWP program? 6

7 ANSWER: This is not required under the EGWP. 19. Please clarify sections 2.3 & 2.4 some things are not mentioned in both, like Retirement Benefits and Financial Portfolio Analysis. ANSWER: Retirement benefits refer to consulting services for retiree health benefits. The consultant would advise on available options for pre-65 and Medicare eligible retirees that best meet the needs of the county and its retirees. This would include the full range of consultative services as outlined in the RFP to the provision of retiree health benefit plans. Financial portfolio analysis consists of the review of a vendor s financial capabilities, strength, stability and overall financial health when evaluating RFPs, ongoing contract management and exercising renewal options. The consultant would review and evaluate carrier ratings, administrative fees, plan offering options, discount allowances, performance guarantees, fiscal management and fiscal processing/ operations procedures, etc. 20. Is OPEB valuation part of this RFP? ANSWER: OPEB Valuation is not part of this RFP. OPEB benefits consultation is required. 21. Is the Aetna Medicare Advantage PPO with ESA the only available option for Medicare retirees? ANSWER: That is correct if they wish to participate in the County s program. Otherwise, they may opt out and enroll in Medicare on their own. 7

8 NOTE: THIS ADDENDUM AND ACKNOWLEDGMENT MUST ALSO ACCOMPANY THE RFP BID RESPONSE TO MAKE IT VALID. Return to: Purchasing Agent Anne Arundel County Heritage Office Complex 2660 Riva Road, 3 rd Floor Annapolis, MD Attention: Coleen Myers, CPPB This will acknowledge receipt of Addendum No. 2 to RFP R EMPLOYEE BENEFITS CONSULTING SERVICES Date: FIRM/COMPANY NAME: SIGNATURE: TITLE: Signature shall conform to requirements of RFP (reference Section ) 8