REQUEST FOR PROPOSALS- INSURANCE BROKER AND CONSULTING SERVICES

October 2, 2015 HUMAN RESOURCES DEPARTMENT 200 AVERY AVENUE MORGANTON, NORTH CAROLINA REQUEST FOR PROPOSALS- INSURANCE BROKER AND CONSULTING SERVICES GENERAL INFORMATION Burke County is located in western North Carolina at the foothills of the Blue Ridge Mountains. Burke County government serves approximately 90,000 people and employs over 500 full-time dedicated employees providing a range of governmental functions including professional financial and administrative services, tax administration, law enforcement and emergency management services, health and human services, and community planning. The County Manager is the Chief Executive Officer and is responsible for carrying out the day-to-day administration of County government. The County Manager is responsible for implementing policies established by the Board of Commissioners, coordinating the work of all County agencies, and representing the County in dealings with other governmental units and agencies. The Manager s duties include preparing the county wide recommended budget, recommending new and revised policies and programs to the Board of Commissioners, and implementing county programs and services in an effective and efficient manner. PURPOSE The Human Resources Director, acting through the County Manager, is seeking proposals from qualified insurance broker/benefits consulting firm to assist the County with strategically planning, designing and negotiating the best coverage and cost for employee benefits programs that include but not limited to; group medical, life and dental, supplemental employee insurance, flexible spending accounts, and ACA compliance. 1

The County currently offers an array of employee benefits that have evolved over the years. As a result, the employee benefits program has become disjointed and inefficient from both the benefits administration and employee customer service standpoint. While the County has a broker of record, the County seeks to have a unified system of benefits administration under an insurance broker/consultant to increase efficiency and maximize the County s investments to the mutual benefit of the County and its employees. This invitation is not an authorization to approach the insurance marketplace on behalf of the County. Prospective brokers failing to comply with this condition could be subject to immediate disqualification. No Bidder may contact a County Commissioner, County Manager, Finance Officer, nor any other County employee other than the designated county Contact official at any stage during the proposal development, submission, review, and selection process. If a Bidder is found in violation of this agreement their Proposal is immediately disqualified from further consideration. The County reserves the right to reject any and all proposals, to waive any informality and to negotiate with the selected applicant prior to entering into any agreement. An accepted proposal becomes a contractual obligation of the broker. Failure of the broker to accept any of these obligations will result in the immediate cancellation of the contract. 1. Request for Proposals: Indicate firm name and deliver by date on the front of each sealed proposal envelope or package identified as Proposal for Insurance Broker and Consulting Services Enclosed. Electronically submitted (email/fax) proposals will not be accepted. TITLE: DEPARTMENT: Insurance Broker and Consulting Services Human Resources ISSUE DATE: October 2, 2015 DUE DATE: NO LATER THAN 4:00 P.M. ON OCTOBER 23, 2015 ISSUING AGENCY: County of Burke c/o Burke County Human Resources 200 Avery Avenue P.O. Box 219 Morganton, NC 28680-0219 rhonda.lee@burkenc.org 2

Sealed Proposals subject to the conditions made a part hereof will be accepted until 4:00 PM on October 23, 2015 for furnishing services described herein. Direct all inquiries concerning this RFP to: Rhonda Lee 200 Avery Avenue P.O. Box 219 Morganton, NC 28680-0219 rhonda.lee@burkenc.org Questions concerning the RFP requirements must be submitted in writing. They may be mailed or e- mailed. Questions will not be answered by phone. Questions must be submitted no later than October 14, 2015. All questions submitted in writing will be answered in the form of an addendum to this Request for Proposals. General Proposal Instructions 1. All proposals must be received by the Human Resources Director no later than the date and time listed on the cover sheet of this proposal in sealed envelopes or containers. Clearly mark as Proposal for Insurance Broker and Benefits Consulting and deliver by date on the outside of the envelope. Six (6) copies of the proposal must be received from each proposer (1 original, 5 copies). Each proposal must be signed and dated by an official authorized to bind the firm. Late proposals will not be accepted nor considered for award. Electronic proposals (fax, email, etc.) will not be considered. Postmarks and/or shipping receipts will not be considered as proof of timely submissions. Bidders must provide responses for all items contained herein that request or call for a response or information, and responses and signatures are required for any attachments to this RFP that are due with the Proposal. Proposals shall be complete and must convey all of the information requested by the County. 2. Proposals will be evaluated according to completeness, content, experience with similar counties, ability of the broker and its staff. The award of a contract to one broker does not mean that the other proposals lacked merit, but that, all factors considered, the selected proposal was deemed to provide the best value to the County. 3. Bidders are cautioned that this is a request for offers, not a request to contract and the County reserves the unqualified right to reject any and all offers when such rejection is deemed to be in the best interest of the County. The County retains the right, in its sole discretion, at any time to reject any or all proposals, in whole or in part, and to cancel or cancel and reissue this RFP, before or after receipt and opening of proposals in response thereto, or take any other actions, if it considers it to be in the best interests of the County. 4. Elaborate proposals in the form of brochures or other presentations beyond that necessary to present a complete and effective proposal are not desired. In an effort to support the sustainability efforts of the County we solicit your cooperation in this effort. 3

5. Any costs incurred by broker in preparing or submitting offers are the broker s sole responsibility; the County will not reimburse any bidder for any costs incurred prior to award. 6. Proposals must be submitted in accordance with the requirements of the RFP. Failure to include any required information may cause rejection of the proposal. 2. Contract Period: Any contract resulting from this proposal shall be effective upon issuance of a notice to proceed with an anticipated effective date starting January 1, 2016 and ending June 30, 2017. The County may offer an option to continue services under the same terms and conditions for an additional year with an option for a third year. 3. Scope of Work: The County requires a North Carolina licensed Broker that is independent and is not affiliated with any insurance company, third party administrative agency, or provider network. The Broker firm must have experience (no less than 5 years) in providing Broker consulting services in the public sector arena with at least 500 employees. The County requires the following services: Provide information on employee benefit issues, trends and proposed or new legislation. Assist the County in identifying and evaluating existing and emerging health insurance related liabilities and issues. Audit consequent contracts for accuracy of coverage, terms, and conditions. Provide ACA compliance consulting and reporting services. Assist with annual benefits renewals, including negotiation of changes in contracts including stop/loss. Issue a written report of anticipated insurance and renewal terms, analysis of market conditions and recommendations for renewal not less than 90 days prior to renewal. Analysis shall address program design, broadest available coverage terms, pricing, optimal stop loss levels, and insurer stability, security and services available. Report must clearly delineate any changes in coverage from that of prior years and/or as may be inconsistent with the County s current coverage document. Provide annual reviews of selected employee benefit package for quality of benefits provided, cost effectiveness, competitiveness and plan administration. When employee benefits are marketed, prepare bid specifications, identify appropriate markets, analyze proposals submitted, make recommendations and assist in negotiation of contracts. If employee benefits are not marketed, assist with annual benefits renewals, including negotiation of changes in contracts. Monitor ongoing contracts, including provider plan administration, provider compliance with contract, and incurred claims. Be available to meet with the HR staff and County Administration as needed. Assist in the design of employee benefits communications. Participate in Benefit Fairs and annual enrollment process. Provide a key contact person to be available to answer questions and resolve issues that arise during the year regarding employee benefits, contract administration, and service provisions. Perform other related consultation services as needed or requested. 4

4. Vendor Proposal Requirements: The proposal response must clearly demonstrate the required qualifications, expertise, competence and capability of the vendor. Please provide a concise description of your firm s ability to provide the services required in Section 3 of this document. Costs incurred by firms responding to this RFP are solely their responsibility. Additionally, please include the answers to the following items (address by number): 1. Describe your organizational structure (i.e. publicly held corporation, partnership, etc.). 2. Confirm that you are a licensed broker in North Carolina and provide documentation. Confirm that you serve as an independent broker and are not affiliated with any insurance company, third party administrative agency, or provider network. 3. Briefly describe your company s organization, philosophy, and management. Also, please provide a brief company history. Describe your contractual relationships, if any, with organizations necessary to your proposal s implementation (i.e. actuarial services, data information services). 4. How long has your organization been providing broker and benefit consulting services? 5. How many clients does your organization presently have? Typically, how many clients does each broker manage? 6. What is the name of your largest client and your smallest client? 7. How many public sector clients do you manage? 8. What is your average response time to questions posed from your clients? How do you handle follow up to outstanding items? What is your preferred method of communicating with your clients (i.e. voicemail, e-mail, fax)? 9. Please provide a list of four verifiable client references of similar scope and industry, all of whom are able to comment on your organization s relevant experience. This list should include at least three current client references that are similar in nature and size to Burke County, and one reference from a former client. Please include company name, contact name, telephone number and size of company s workforce. It is the vendor s responsibility to provide valid reference information and the County reserves the right to use reference checks in its evaluation of proposals. 10. Please provide a detailed description of your expertise in providing benefits communication and enrollment programs. Do you provide the same services for core benefit program as you would for the voluntary benefits you offer? This description should include your recommendations for the benefits communication and/or enrollment process. 5

11. Bidders shall submit as a part of their Proposal a sample implementation plan for a plan year beginning July 1 through June 30 th as indicated in Section 3 (Scope of Work). The plan should consist of a sequential listing of all steps necessary to provide the requested services and which party is responsible. 12. Describe how the enrollment will be organized and managed. Describe the resources necessary to accomplish the purpose of the benefits enrollment, including but not limited to local insurer support staff. 13. The individuals performing the enrollment must conduct themselves in an informational manner effectively communicating all aspects of the benefits to properly inform and educate employees. Please describe the enrollers who would be meeting with the employees and their experience with public sector enrollments? 14. The County prefers a Broker who can help show employees what we provide for them in the area of benefits, so they can better appreciate those benefits offered to them. What communication and/or enrollment services make your company's proposal uniquely attractive in this regard? 15. Describe the communication pieces your company provides to assist in the enrollment process. Specifically, we are interested in providing each employee a benefits statement, an election form indicating employee deduction, benefits booklet, customized benefits website, educational videos. 16. Detail how you develop a benefit communication strategy with your clients. Include what tools or resources you have available to assist your clients in effectively communicating not only the specific plan details but also the value of the benefits offered? 17. Bidders are required to provide in their proposals a description of the proposer s Internet -based uses and any recommendations for electronic enrollment services including recommendations concerning appropriate uses of Internet based enrollment or enrollment support activities. 18. The Bidder should provide detail regarding their experience in designing, implementing, administering, managing and maintaining electronic enrollment services. How do you maintain data security? What fee(s) are charged for these services? 19. Briefly describe the level of service and support provided by your staff on a day-to-day basis. 20. What steps does your organization take to ensure that each broker is educated on current market trends and legislative developments? How is this information communicated to your clients? 21. Describe how you propose to build an understanding of the direction and priorities of the County and how you would utilize this information in order to anticipate our needs in relation to benefits. 6

22. Describe your firm s policy on accepting contingent commissions, or any other sources of income, revenue consideration, compensation or overrides, in connection with services provided to your clients. Describe your firm s disclosure policy. 23. Detail how your organization participates in developing a strategic benefit plan with your clients. 24. Describe your organization s involvement in the annual renewal process. Include information regarding process timeframes, negotiation of rates and vendor selection. 25. Describe the process of how your organization would assist the Unit in selecting a new insurance vendor. Include how your company s experience and expertise would benefit the County. 26. Please provide a list of the vendors you have relationships with in regard to health, dental, disability, life, voluntary benefits and insurance plans. 27. What is your process for providing plan recommendations to your clients? 28. Describe how your organization strives to streamline benefit administration for your clients. Include any services you provide for automation of the benefit process (i.e. electronic capabilities, outsourcing options). Attach any associated costs for these services on a separate fee schedule. 29. What makes your organization unique from other organizations that may submit proposals for the County s consideration? 5. Compensation: Please clearly outline your compensation associated with the required services on a separate compensation addendum. 6. Criteria for Evaluation: All proposals will be evaluated according to, but not necessarily limited to, the following: The proposal s Plan of Services including fees as required in item 3. Scope of Work and 4. Vendor Proposal Requirements. Extent and success of previous work provided to organizations similar in nature and size to those required herein. References provided verifying the required experience and level of service needed by the County. The proposal itself as an example of the potential vendor s work. Qualifications/experience of key personnel to be assigned to Burke County. All required forms completed and returned as part of the proposal package. 7

7. Oral Presentations: During the evaluation process, the County may, at its discretion, request any one or all Bidders to make oral presentations for the purpose of clarification or to amplify the materials presented in any part of the proposal. However, Bidders are cautioned that the County is not required to request clarification; therefore, all proposals should be complete and reflect the most favorable terms available from the broker. Not all Bidders may be asked to make such oral presentations. The County may select more than one finalist based on the responses to this RFP. The finalists will be offered the opportunity to make a presentation to the selection committee, made up of key stakeholders, end-users, and representatives from HR, Finance, and County Administration. 8. Final Selection: A recommendation will be made to the County Manager at the earliest possible time. The contract will be awarded to the Bidder that is determined by the County to best meet the County s objectives determined by the evaluation criteria stated in this proposal. The right is reserved to accept the response that Burke County determines to be in the best interest of the County and its employees. Burke County reserves the right to reject any and or all proposals. 9. Proposals Subject to Public Records Laws: All proposals, data, materials and documentation originated, prepared and submitted to the County pursuant to this RFP shall belong exclusively to the County and may become available to the public in accordance with the North Carolina Public Records Act as provided in N.C.G.S. 132-1 et. seq. County will make reasonable attempts to maintain, in accordance with the Public Records Laws and the Act, the confidentiality of any trade secrets or confidential information that meets the requirements of N.C.G.S. 132-1.2 of the Public Records Laws if such Bidders properly and conspicuously identify the particular data or other materials which are confidential information in accordance with the Public Records Laws. 10. Negotiation and Execution of Contract A. A successful Bidder under this RFP shall negotiate and execute a contract containing such terms and conditions as shall be satisfactory to the County. The terms of such contract is subject to discussion and agreement but is anticipated to include the following: 1) A scope of services similar to that set forth in this Request for Proposals unless modified upon agreement by the County. 2) A provision which allows Burke County the right to terminate services at any time upon thirty (30) days notice. 3) To the extent allowed under law or not prohibited by insurance contract, a credit of the fee payable in the event that services are terminated and/or deleted. 8

4) Insurance coverage satisfactory to County Administration. 5) A provision that requires all services performed under the contract to conform to prevailing professional or provider standards and to the requirements of the contract. Upon written notice of any defect from the County, the broker will be expected to correct or re-perform any defective or nonconforming services at no cost to Burke County. If the broker fails or refuses to correct or re-perform, the County shall be entitled to any remedy that may be provided for under the contract, and in any event, that may be authorized by law. 6) A provision requiring the Broker to defend, indemnify and hold harmless the County with regard to any negligent acts or omissions or malfeasance with regard to the services performed or to be performed. 7) A provision providing that the Broker shall not be deemed an agent of the County for any purpose whatsoever. 8) Such other terms and conditions that may be required pursuant to Federal or State Law, Regulation and/or by the County Attorney. The occurrence of negotiations with any Bidder conveys no right or status on such potential Bidder. By submitting a proposal, each Bidder acknowledges and agrees that the County may negotiate with one or more Bidders, under such circumstances, at such times, and in such a manner, as it determines to be in the best interest of the County. 11. Governing Law This Procurement and any Contract resulting from this RFP shall be governed by and constructed in accordance with the laws of the State of North Carolina. Any and all claims or disputes arising under or in connection with this RFP or the Contract shall be exclusively governed by the laws of the State of North Carolina, and venue shall be exclusively within Burke County, North Carolina. 12. Indemnity and Insurance Brokers will indemnify and hold harmless the County, its officers, agents, and employees from and against all loss, cost, damages, expense and liability caused by accident or other occurrence resulting in bodily injury, including death and disease to any person, or damage or destruction to property, real or personal, or loss, expenses or damages caused by failure of the Broker to adequately perform its work herein, arising directly or indirectly from operations, products, or services rendered or purchased under the contract. 9

13. Transfer, Assignment, or Subcontract The covenants and agreements contained within the selected proposal are specifically binding and the County will not allow the selected proposal to be transferred, assigned or subcontracted to any other party or parties without the express written consent from the County. 14. Certification of Independent Price Determination By submission of this Proposal, the Bidder certifies and, in the case of a joint Proposal, each party thereto certifies as to its own organization, that in connection with this Procurement: A. The price in this Proposal has been arrived at independently, without consultation, communication, or agreement for the purpose of restricting competition as to any matter relating to such prices with any other Bidder or with any competitor; B. Unless otherwise required by law, the prices which have been quoted in this Proposal have not and will not be knowingly disclosed by the Bidder prior to the Proposal opening, directly or indirectly, to any other Bidder or to any competition; and C. No attempt has been made or will be made by the Bidder to induce any other person or firm to submit or not to submit a Proposal for the purpose of restricting competition. 15. E-Verify Compliance By submission of this Proposal, the Bidder certifies that it and any subcontractors comply with the requirements of Article 2 of Chapter 64 of the North Carolina General Statutes. 16. Equal Opportunity Employer Burke County is an equal opportunity employer. Note: The right is reserved to accept the response that Burke County determines to be in the best interest of the County and its employees. Burke County reserves the right to reject any and or all proposals. 10

COMPANY NAME REFERENCES PROPOSALS MUST LIST FOUR (4) REFERENCES (3 Current Clients and 1 Former Client) FOR WHOM SIMILAR WORK HAS BEEN PERFORMED SIMLIAR IN SIZE TO BURKE COUNTY. (1) CURRENT CLIENT NAME ADDRESS (Street) ADDRESS (City, St, Zip) CONTACT NAME TELEPHONE/E-MAIL (2) CURRENT CLIENT NAME ADDRESS (Street) ADDRESS (City, St, Zip) CONTACT NAME TELEPHONE/E-MAIL (3) CURRENT CLIENT NAME ADDRESS (Street) ADDRESS (City, St, Zip) CONTACT NAME TELEPHONE/E-MAIL THIS PAGE MUST BE COMPLETED AND SUBMITTED AS A PART OF YOUR PROPOSAL. 11

(4) FORMER CLIENT NAME ADDRESS (Street) ADDRESS (City, St, Zip) CONTACT NAME TELEPHONE/E-MAIL THIS PAGE MUST BE COMPLETED AND SUBMITTED AS A PART OF YOUR PROPOSAL. 12

EXECUTION OF PROPOSAL DATE: The Bidder certifies the following by placing an "X" in all blank spaces: That this proposal was signed by an authorized representative of the firm. That the Bidder has determined the cost and availability of all materials and supplies associated with performing the services outlined herein. That all labor costs associated with this project have been determined, including all direct and indirect costs. That the Bidder agrees to the conditions as set forth in this Request for Proposal with no exceptions. Therefore, in compliance with the foregoing Request for Proposal, and subject to all terms and conditions thereof, the undersigned offers and agrees, if this proposal is accepted within (150) days from the date of the opening, to furnish the services for the prices quoted within the timeframe required. NAME (BIDDER) ADDRESS CITY, ST. & ZIP PHONE FAX BY TITLE_ (Signature) Type or Printed Name Federal Identification Number THIS PAGE MUST BE COMPLETED AND SUBMITTED AS A PART OF YOUR PROPOSAL. 13

Addendum to RFP- Insurance Broker and Consulting Services October 14, 2015 Questions Received and Answered: 1. Under Scope of Services, How are you currently handling the ACA reporting required of employers your size? Burke County has a separate service agreement in place with another group that handles the ACA reporting requirements for the County. This is a separate one-time agreement and we expect the successful bidder to handle this moving forward. 2. What is your current funding contract? Fully-Insured or Self-funding? The County s group medical and dental plans are self-funded. 3. What is the current process for communicating your open enrollment and your benefit programs? Who handles this process? Open enrollment and benefits communications are established and communicated by Burke County Human Resources. 4. Do you currently work with a Broker of record? Fee based Consultant? Yes. 5. If so, which firm? Mark III Brokerage, Inc. 6. If so, do they receive commissions or fees paid by the county or combination of both? How much do they receive? A flat fee in the amount of $2.50 per employee, per month for employees on the group health plan 7. Any issues/problems with current advisor? No 8. Please clarify the requirements for the following numbers under Vendor proposal requirements: #10, 13, 15, 16 and 18. How are they currently being handled? Burke County Human Resources schedules and conducts an annual open enrollment period, as well as monthly new hire orientation meetings. Electronic open enrollment is not currently offered under the County s existing Brokerage/Consulting Agreement. Employee Benefit Statements are also not offered under the County s current Brokerage/Consulting Agreement. Note: These questions were received pursuant to Page 3 of the RFP and are now posted as an addendum.