PURCHASING DEPARTMENT LOUISVILLE, KENTUCKY. Invitation No: RP Date : Addendum No: 1 Title: Flexible Spending Account Administrator
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1 PURCHASING DEPARTMENT LOUISVILLE, KENTUCKY Invitation No: RP Date : Addendum No: 1 Title: 4/4/2017 The following shall clarify and/or modify the original RFP documents issued by the University of Louisville: 1. Add the attached Changes, Clarifications, Questions submitted and University response to this Request for Proposal. All other terms and conditions remain the same. Bidder must acknowledge receipt of this and any addenda either with proposal or by separate letter. Acknowledgement must be received in the Office of Purchasing, Service Complex Building, University of Louisville not later than April 7, :00 PM. If by separate letter, the following information must be placed in the lower left hand corner of the envelope: Invitation No: RP Title: Due Date: April 7, 2017 By: Elizabeth Skonieczny Authorized Purchasing Officer Receipt Acknowledged: FIRM BY: 1
2 Q1. Can you disclose the current FSA per participant per month administrative fee? A1. The current FSA per participant per month administrative fee will not be shared. Q2. Does this PMPM fee include the cost of the debit card or is the card an additional fee? A2. The debit card is included in the per member per month administrative fee. Q3. Does the University require or desire onsite enrollment meetings during the Open Enrollment? If yes, approximately how many meetings and at how many different locations? A3. Participation in benefit fairs is a requirement for the successful bidder. The University has four days of benefit fairs two at their Health Science Campus and two on the Belknap Campus. Q4. If the University were to switch vendors as a result of this RFP, would the current vendor administer the 2017 run out period or would the new vendor be responsible for taking this over in addition to the new plan year? A4. The University s current vendor will administer the run out period, for ease of administration. This will be finalized during implementation. Q5. How many benefit eligible employees do you currently have? A5. As indicated on the Client Data tab of the RFP, there are approximately 6,300 benefit eligible employees. Q6. Can you share why the University is shopping their Flexible Spending services at this time? A6. Due to procurement guidelines, contracts must go out to bid every five (5) years. This is the fifth year of the current contract. Q7. Are there any pain points that the University is attempting to mitigate by changing TPA s? A7. The University is not experiencing any pain points with their current TPA. Please provide your most comprehensive, cost effective bid. Q8. Are the HRIS / benefit admin systems centralized or are there separate databases managing employee records? A8. The University uses PeopleSoft as their HRIS / benefit admin system.
3 Q9. Can you share your current pricing schedule for Flex Spending services? If so, is the pricing per pre-tax account or pre-tax participant? For example, if one employee is enrolled in both the daycare and medical pre-tax accounts, is the University paying for one or two monthly fees for this employee? A9. The current pricing schedule for flex spending services will not be shared. Vendors are asked to provide a complete, specific fee schedule, reflecting your proposed pricing structure. Q10. On the Excel file (Client Data tab), can you confirm if the HCFSA count of 2207 includes the 198 or excludes the 198 participants noted as participating on both medical and daycare plans? A10. As stated on the Client Data tab, there are 2207 members who exclusively have the medical flexible spending account. There are 198 individuals who contribute to and participate in both the medical and dependent care flexible spending accounts. Q11. Can you share an anticipated award date? A11. The University should finalize their decision no later than July 1, 2017, for a January 1, 2018 effective date. Q12. What is the University s FSA plan year? A12. The University s FSA plan year runs on a calendar year, from January 1 December 31. Q13. RFP Submission Format: Page 5 of the RFP indicates responses should be printed and mailed. The Excel file (in the introduction tab) indicates the responses should be submitted via . Can the University clarify how the RFP responses should be submitted? A13. Page 5 of the RFP indicates the acceptable submission format one original printed copy; one flash drive; and three printed copies of the proposal. Q14. Debit Cards: d. A14. Are FSA participants substantiating (submitting supporting receipts) for some, all, or none of their debit card transactions? Please detail procedures in place to ensure plan compliance regarding IRS receipt request for debit card transactions. Please indicate if copays are available on your insurance plan design(s). If available, please provide the debit card auto-adjudication rates for the prior plan year. The University currently has an auto-adjudication rate of 92.46%. The University and current TPA follow best practice procedures to ensure compliance regarding IRS receipt substantiation. Please provide your recommended solution / procedure to this issue as part of your proposal.
4 Two of the University s insurance plans offer copays for office visit physician services. All four plans offer copays on prescription drugs. d. The 2016 debit card auto-adjudication rate is 92.46%. Q15. Does the University offer any other pre-tax benefits such as HSA s, limited FSA s or QTP s? A15. Not at this time. Q16. Who will be responsible for prior year plan run-out administration? (The current TPA or the new TPA?) A16. The University s current TPA will administer the run-out period for ease of administration. This will be finalized during implementation. Q17. Can you provide details on the HCFSA plan design? Is there a run-out? If yes, how long? Is there a grace period? If yes, how long? Is there a rollover? If yes, how long? A17. There is a 90-day run out period (March 31 of the following plan year). The University currently offers a 2.5 month grace period. There is no rollover offered on the plan. Q18. Can you provide details on the DCFSA plan design? Is there a run-out? If yes, how long? Is there a grace period? If yes, how long? A18. There is a 90-day run out period (March 31 of the following plan year). The University currently offers a 2.5 month grace period. Q19. Who are your partners for: PBM Wellness Payroll A19. Express Scripts is the PBM vendor. Health Fitness Corporation coordinates the wellness program for the University. The payroll is handled in-house by the University. Q20. Are the HCFSA dollars available in full at the beginning of the plan year prior to payroll deductions or are they only available once deducted from the employee s paychecks? A20. Healthcare flexible spending dollars are available in full at the beginning of the plan year. Dependent care flexible spending dollars are available as they are contributed.
5 Q21. At what frequency is payroll run? A21. The University has a bi-weekly and a monthly payroll. Q22. How many separate pay cycles does the University have? A22. The University has a bi-weekly and a monthly pay cycle schedule. Q23. Are all employees on the same payroll system? A23. Yes, all employees are on the same payroll system. Q24. Who is the current health and welfare platform administrator? A24. The University currently uses PeopleSoft for their benefits administration system. Q25. Does the University offer other reimbursement services (i.e. health credits, tuition reimbursement, et)? A25. The University currently offers a wellness credit for their health plan participants who participate. Q26. Does the University offer or plan to offer in the near future a HSA with a Limited Purpose FSA strategy? A26. Not at this time. Q27. Although it has been documented as the purpose of this RFP is due to contracting, if the University could add or change an element of the current program, what would that be? A27. Vendors are asked to submit their most comprehensive, cost effective solution for the University to consider. Wish list items will be discussed based on your proposal and during finalist presentations, should they occur.
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