Request for Proposal: VOLUNTARY WORKSITE, PREPAID LEGAL, FSA ADMINISTRATION AND COBRA ADMINISTRATION RFP: #1415-375 March 17, 2015 Requested by: Senior Consultant: Cindy Bartolacci Consultant: Carrie Bartlett
DANVILLE PUBLIC SCHOOLS REQUEST FOR PROPOSALS #1415-375 Issue Date: Tuesday, March 17 th, 2015 RFP: #1415-375 Title: Voluntary Worksite, Prepaid Legal, FSA Administration and COBRA Administration Period of Contract: From October 1, 2015 through September 30, 2020 Due Date: Delivery Address: Thursday, April 2, 2015; no later than 2:00 pm Digital Benefit Advisors; Attention: Carrie Bartlett 9954 Mayland Drive, Suite 2200 Richmond Virginia 23233 Sealed proposals will be received by Digital Benefit Advisors prior to 2:00 PM, Thursday, April 2, 2015 for furnishing the services described herein. All inquiries for information should be directed to: Carrie Bartlett, (804) 249-5152 or cbartlett@digitalbenefitadvisors.com and must be received no later than five (5) working days before the due date. In compliance with this Request for Proposal and to all the conditions imposed therein and hereby incorporated by reference, the undersigned offers and agrees to furnish the goods/services in accordance with the attached signed proposal or as mutually agreed upon by subsequent negotiation. Name and Address of Firm: eva Vendor ID or DUNS No. E-mail Address: Date: By: Name: Title: Telephone No. FAX No. Signature in Ink Please Print Note: This public body does not discriminate against faith-based organizations in accordance with the Code of Virginia 2.2-4343.1 or against a bidder or offeror because of race, religion, color, sex, national origin, age, disability, or any other basis prohibited by state law relating to discrimination in employment. 2
REQUEST FOR PROPOSAL TITLE PAGE RFP: #1415-375 ISSUE DATE: March 17, 2015 TITLE: Voluntary Worksite, Prepaid Legal, FSA Administration and COBRA Administration In compliance with this Request for Proposal and to all the conditions imposed herein, by signing below, Offeror: (1) Offers and agrees to furnish the goods/services in accordance with the attached signed proposal; (2) Agrees that upon Danville Public Schools written acceptance of Offeror s response to the Request for Proposal, a valid and binding contract for services exists between Offeror and Danville Public Schools; (3) Agrees that the Contract Documents will consist of, and only of, the Request for Proposal, Danville Public Schools, Virginia Standard Terms and Conditions and Offeror s response to the Request for Proposal; (4) Certifies and warrants that the individual signing on Offeror s behalf is authorized to bind the Offeror in any and all contractual matters relating to this Request for Proposal; (5) Certifies and warrants that neither Offeror, nor the individual signing on Offeror s behalf, has any business or personal relationships with any other persons, including Danville Public Schools employees, or companies that are in conflict with the Commonwealth of Virginia s Conflict of Interest Act, or Danville Public Schools, Virginia Standard Terms and Conditions; and, (6) Certifies and warrants that the Offeror is properly licensed for providing the goods/services specified in the Request for Proposal and has the appropriate License or Certificate and classification(s) required to perform the work included in the scope of the proposal documents, prior to submitting the proposal, in accordance with Title 54.1, Chapter 11 of the Code of Virginia. If an Offeror shall fail to obtain the required license prior to submission of his proposal, he shall be deemed to be in violation of 54.1-1115 of the Code of Virginia (1950), as amended, and his proposal will not be considered. Sign in ink and type or print requested information. Legal Name and Address of Firm: Date: By: (Signature) Name: Information the Offeror deems Proprietary is included in this response in the separate section of the proposal identified immediately below. This Title Page MUST be Submitted as Part of your Proposal 3
Table of Contents Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Attachments Statement of Confidentiality General Information Statement of Needs Proposal Preparation and Submission Requirements Competitive Negotiation Method of Award Questionnaire Rate and Benefit Grids Census Current Bills 4
Section 1: Statement of Confidentiality The following information is proprietary and confidential. This proposal and its attachments should not be discussed with anyone outside your firm. Any organization violating this requirement will immediately be eliminated from consideration in the request for proposal process. Any questions regarding the proposal should be directed to Digital Benefit Advisors: Carrie P. Bartlett > Consultant 9954 Mayland Drive, Suite 2200, Richmond, VA 23233 P: 804.249.5152 F: 855.293.3656 cbartlett@digitalbenefitadvisors.com 5
Section 2: General Information A. Definition of Group a. The group consists of Danville Public Schools, hereinafter referred to as the Schools. B. Purpose a. The purpose of this Request for Proposals (herein, RFP ) is to solicit sealed proposals from highly qualified sources to establish a contract for Voluntary Worksite, Prepaid Legal, FSA Administration and COBRA Administration services for all full time employees of the Schools in accordance with the enclosed specifications through competitive negotiation. b. The Schools can decide they do not want to offer this benefit pending the evaluation of offers received. C. Objectives a. The primary objectives of the School s Voluntary Worksite, Prepaid Legal, FSA Administration and COBRA Administration are to provide access to the following services for full time, active employees and their household dependents. b. Each offering should be a standalone product and not subject to enrollment in the medical or dental plan. D. Background a. Danville Public Schools implemented the current contract with AFLAC to provide voluntary worksite benefits to their employees and eligible dependents. The Schools has decided to market for Voluntary Vision services to ensure that they are competitive both in design and cost with the market. b. The Schools currently offers: i. AFLAC s Personal Accident Plan, Cancer Plan, and Specified Health Event Plan, ICARE plan, Short Term Disability and Life. ii. The Flexible Spending Accounts are offered through RJ Baldwin. iii. COBRA and Legal Assistance are not currently offered. c. Plan Designs Cancer See current bill Accident See current bill Life See current bill Intensive Care See current bill STD See current bill LTD Not currently offered FSA 195 enrolled in HCFSA; 3 enrolled in DCFSA COBRA Currently handled in-house; 2 enrolled Legal Assistance Not currently offered d. All Programs, if offered, will be effective October 1, 2015. e. The Schools may choose to endorse multiple providers for the different products. f. Eligible Lives: ~799 full-time employees 6
Section 3: Statement of Needs This statement of needs establishes the minimum services and specific conditions that the successful Offeror shall meet in order to fulfill the School s objectives as stated in this RFP. A. Minimum Services Required: a. Designate a point of contact responsible for resolving problems, administrative or billing issues, and expediting services related to overall performance of the contract. b. Provide an organizational chart and list of contacts (with phone numbers, department and titles) in relevant functional areas. Allow staff to communicate directly with such contacts when staff deems it appropriate. Shall provide updates to the organizational chart and contact information as changes occur within 10 business days. c. Maintain separate accounts or subgroups as required by the Schools. d. Maintain a local or toll-free customer service number for covered enrollees. Provide responsive and effective customer service for enrollees related to accessing services and or providers. e. Meet with the contract and benefits administration staff within 10 business days after the contract award date to review the Contractor s program to present the proposed communication material, and to jointly establish a preliminary implementation plan, open enrollment program, and schedule. Meet annually with staff each year of the contract for the same purpose. f. Provide communication material to include sufficient copies of any product brochures to be distributed to employees during the School s open enrollment each year, currently held in July and August. i. The brochure should outline all the benefits, covered services, procedures for receiving services, HIPAA, and any other information required to be disclosed under Federal and State law. ii. All expenses associated with the printing or reprinting and distribution of these materials shall be the responsibility of the Contractor. iii. The Schools will coordinate the distribution of enrollment materials. iv. All ongoing administrative costs associated with meeting these request for proposal requirements are to be included in the quoted rates. Any additional costs must be disclosed. v. The contractor is required to work directly with Benefit Managers and/or other appropriate staff. g. Reporting: Provide semi-annual cumulative year-to-date utilization specific to services rendered to covered enrollees. Also, upon request, provide information separately for the Schools. Provide ad hoc reporting by request. 7
B. Proposed Plan Design Specifications: a. The Offeror is requested to submit a proposal for only the following products i. Cancer Plan ii. Accident Plan iii. Intensive Care / Critical Illness Plan iv. Short Term Disability* v. Long Term Disability* vi. Voluntary Life Insurance Plan vii. Legal Assistance viii. FSA Administration with Debit Card ix. COBRA Administration (current turnover is approximately 40-50 annually) b. *Offerors are encouraged to provide disability options that mesh well with the Virginia Retirement System Disability plan offered by municipalities in Virginia. Descriptions of each plan offered must be included in your proposal. Please produce proposals for a guarantee issue disability product only. We will not be considering any medically underwritten schools products. c. Your quote should include your standard commissions. d. All rates should be guaranteed for at least 3 years. Extended rate guarantees are very important to the decision-making process. e. Offerors shall include in the Proposal a description of any significant task not listed in the Scope of Services which they know to be necessary either as reimbursable expenses under the Contract or as a service to be contracted for separately by the Schools. C. Rate Guarantee & Contract a. A 5 year contract is desired: October 1, 2015 September 30, 2020. b. This would include a desired 3 year rate guarantee: October 1, 2015 September 30, 2018. After the initial rate guarantee, there will be an option to renew for 2 additional years - October 1, 2018 September 30, 2020. 8
Section 4: Proposal Preparation and Submission Requirements A. General Instructions a. RFP Response: i. In order to be considered for selection, Offerors must submit a complete response to the RFP. One (1) original must be submitted to Digital Benefit Advisors. ii. In addition, a digital copy of the proposal shall be submitted on a USB or emailed electronically. iii. Proposals received after the date and time specified shall not be considered. B. Proposal Preparation a. Proposals shall be signed by an authorized representative of the Offeror. All information requested should be submitted. Failure to submit all information requested may result in Purchasing requiring prompt submission of missing information and/or giving a lowered evaluation of the proposal. Proposals which are substantially incomplete or lack key information may be rejected by the Schools. Mandatory requirements are those required by law or regulation or are such that they cannot be waived and are not subject to negotiation. b. Proposals should be prepared simply and economically, providing a straightforward, concise description of capabilities to satisfy the requirements of the RFP. Emphasis should be placed on completeness and clarity of content. c. Proposals should be organized in the order in which the requirements are presented in the RFP. All pages of the proposal should be numbered. Each paragraph in the proposal should reference the paragraph number of the corresponding section of the RFP. It is also helpful to cite the paragraph number, sub-letter, and repeat the text of the requirement as it appears in the RFP. If a response covers more than one page, the paragraph number and sub-letter should be repeated at the top of the next page. The proposal should contain a table of contents which cross-references the RFP requirements. Information which the Offeror desires to present that does not fall within any of the requirements of the RFP should be inserted at an appropriate place or be attached at the end of the proposal and designated as additional material. Proposals that are not organized in this manner risk elimination from consideration if the evaluators are unable to find where the RFP requirements are specifically addressed. d. As used in this RFP, the terms "must", "shall", "should" and may identify the criticality of requirements. "Must" and "shall" identify requirements whose absence will have a major negative impact on the suitability of the proposed solution. Items labeled as "should" or may are highly desirable, although their absence will not have a large impact and would be useful, but are not necessary. Depending on the overall response to the RFP, some individual "must" and 9
"shall" items may not be fully satisfied, but it is the intent to satisfy most, if not all, "must" and "shall" requirements. The inability of an Offeror to satisfy a "must" or "shall" requirement does not automatically remove that Offeror from consideration; however, it may seriously affect the overall rating of the Offerors proposal. e. Each copy of the proposal should be bound or contained in a single volume where practical. All documentation submitted with the proposal should be contained in that single volume. f. Ownership of all data, materials, and documentation originated and prepared for the Schools pursuant to the RFP shall belong exclusively to the Schools and be subject to public inspection in accordance with the Virginia Freedom of Information Act. Trade secrets or proprietary information submitted by an Offeror shall not be subject to public disclosure under the Virginia Freedom of Information Act; however, the Offeror must invoke the protections of 2.2-4342F of the Code of Virginia, in writing, either before or at the time the data or other material is submitted. The written notice must specifically identify the data or materials to be protected and state the reasons why protection is necessary. The proprietary or trade secret material submitted must be identified by some distinct method such as highlighting or underlining and must indicate only the specific words, figures, or paragraphs that constitute trade secret or proprietary information. The classification of an entire proposal document, line item prices, and/or total proposal prices as proprietary or trade secrets is not acceptable and will result in rejection of the proposal. g. Oral Presentation: Offerors who submit a proposal in response to this RFP may be required to give an oral presentation of their proposal to the Schools. This provides an opportunity for the Offeror to clarify or elaborate on the proposal. This is a fact finding and explanation session only and does not include negotiation. The Schools will schedule the time and location of these presentations. Oral presentations are an option of the Schools and may or may not be conducted. C. Specific Proposal Instructions a. Proposals should be as thorough and detailed as possible so that the Schools may properly evaluate your capabilities to provide the required services. Offerors should include in their Proposals a description of any significant task not listed in the Statement of Needs which they know to be necessary, either as reimbursable expenses under the Contract or as a service to be contracted for separately by the Schools. Offerors are encouraged to provide additional services which will enhance their ability to meet the School s objectives. Offerors are required to submit the following items as a complete proposal: 10
TAB I TAB II TAB III TAB IV TAB V TAB VI TAB VII Title Page Executive Summary All signed documents from RFP and all addenda acknowledgements, if any. Rate/Benefit Grids from Section 8 of the RFP Detailed Description of Coverages Quoted (including Limitations and Exclusions) Rates Exhibits and Deviations Questionnaire Responses from Section 7 of the RFP Sample Management Reports and Documents Sample Documents and Communication Materials Sample Contracts for each Benefit Proposed 11
Section 5: Competitive Negotiation Determination that Competitive Bidding is not Practicable and/or not Fiscally Advantageous to the Public for Procurement of Goods/Services/Insurance The Superintendent (or his/her authorized designee) and the School Board of the City of Danville, Virginia, has concluded that the procurement of the following goods/services/insurance should be procured by competitive negotiation rather than competitive bidding: Voluntary Worksite, Prepaid Legal, FSA Administration and COBRA Administration In accordance with the provisions of Section 11-41C.1 of the Code of Virginia, 1950, as amended, the Superintendent (or his/her authorized designee) and the School Board have determined that competitive sealed bidding is not practicable and/or not fiscally advantageous to the public for the procurement of such goods/services/insurance for the following reasons: To allow the School Board to consider the submission of innovative solutions to healthcare risk management issues which may supercede cost. 12
Section 6: Method of Award Following evaluation of the written proposals as submitted, selection shall be made of two or more Offerors deemed to be fully qualified and best suited among those submitting proposals, on the basis of the factors involved in the Request for Proposals. Negotiations may then be conducted with each of the Offerors so selected. Price shall be considered, but need not be the sole determining factor. After negotiations have been conducted with each Offeror so selected, the Schools shall select the Offeror which, in its opinion, has made the best proposal, and shall award the contract to that Offeror or to multiple Offerors should the Schools and/or Schools decide this to be in their best interest. Should the Schools determine in writing and in its sole discretion that only one Offeror is fully qualified, or that one Offeror is clearly more highly qualified than the others under consideration, a contract may be negotiated and awarded to that Offeror. 13
Section 7: Questionnaire The following questionnaire will assist in evaluating the quality and services being offered to the Schools and/or Schools employees and their dependents as well as assist in the evaluation of the financial and contractual information requested of the vendor. Answer each question clearly and concisely. If the vendor is unable to answer a question or the question does not apply, the vendor shall indicate why. Proposals that are substantially incomplete or lack key information may be rejected. Each response must immediately follow the respective question. All questions and responses shall be numbered-/-labeled exactly as in this Questionnaire. If the vendor is unwilling to disclose particular information asked in a question, the vendor shall indicate why. Samples of documents requested in General Information should be submitted in appropriate tabs as described in the proposal preparation section. 1. Provide background information and a brief description of your organization. Include any pertinent information relative to the size and organizational structure of your company. 2. Please provide the following contact information. Point of Contact: Title: Company: Address: Telephone: Fax: E-mail: 3. Report any disciplinary or class action against you within the last three (3) years. 4. How do you protect confidentiality? 5. If you are awarded this business, describe your transition plan. Provide details regarding how you would manage this process to ensure continuity of care, confidentiality, and employee status factor. 6. Specify any waiting periods that apply. 7. Please outline any on-line/paperless capabilities your organization employs to enroll employees into your worksite and/or voluntary programs. 8. Are the systems you use in-house or do you outsource the system capabilities to other organizations? 9. Describe the timing of your premium collection is it collected in advance or in arrears? 10. Confirm your ability to provide bills to separate divisions or sub-groups if required. 11. Do you have the capability to enroll products not offered by your organization (core benefits) and transmit enrollment data to the appropriate vendors? 14
12. Please outline any required enrollment conditions needed to offer your products. Include requirements for mandatory meetings, number of employees per location required for a meeting, etc. 13. Provide the communication material available to employees to assist them in understanding the benefits offered. 14. If you have any minimum enrollment requirements, what happens to employees selecting your products if participation requirements fall below your requirement? 15. Outline what type of online access the Schools will have to member enrollment information. Can the Schools, for example, view active employees and make enrollment changes if needed? 16. Are your products available for enrollment throughout the year for new hires, or just at certain points (e.g. annual open enrollments) 17. Describe the process to enroll new hires (e.g. paper, call center, onsite enroller?) 18. If you use onsite enrollment counselors for open enrollment are these enrollers employees of your firm or contractors? 19. On what basis are enrollers compensated (per diem, commission, etc.) 20. Please provide a chart showing our primary contacts at your organization for the benefits quoted. Include the length of each person s service with your company and in their current position as well as a summary of key roles of each in relation to the services quoted (e.g. day to day contact, senior account manager for renewals and strategy, etc.) 21. Describe the process for employees to file claims or resolve claim issues with the proposed benefits. 22. Outline the impact to benefits and cost to the member if a member leaves the Schools and wants to continue paying for plans on an individual basis. 23. Describe access for plan members to member services or claim assistance including method of contact (toll free, chat, online) and hours of operation. 24. Describe support services and personnel available to our human resources department to resolve issues. 25. Confirm your firm s ability to provide the minimum services to be provided for each line as summarized in Scope of Services Section (Section 3.0). 26. Provide three client references. 15
Section 8: Rate and Benefit Grids Besides any additional benefit or rate information included in your proposal, you must complete the following grids for each product quoted. Please confirm if your products include commissions. OFF-THE-JOB ACCIDENT PLAN MONTHLY RATE Example Plan 1 Employee Only $16.25 Employee/Spouse $23.16 Employee/Child(ren) $30.90 Family $37.86 BENEFIT Group or Individual Group Underwriting N/A Type of Plan On/Off the Job Guarantee Issue All Participation Requirement 5 approved applications Wellness Benefit $50 Accident Hospital Confinement $250 per day Emergency Medical $150 Fractures and Dislocations $25 - $5,000 Follow-up Physical Therapy $25 per day Additional Covered Conditions Burns, coma, concussion, lacerations Taxability Post-Tax 16
CANCER PLAN MONTHLY RATE (sample) Example Plan 1 $5,000 of coverage; Non-Tobacco $5.75 Age 30 Employee $5,000 of coverage; Non-Tobacco $15.80 age 40 Employee $5,000 of coverage; Non-Tobacco $23.75 Age 45 Employee BENEFIT Group or Individual Group Underwriting Simplified Guarantee Issue $10,000 ee / $5,000 spouse Participation Requirement for GI 15% Coverage Amount EE - $5K - $50K; Spouse $2500K to $25K; Child $2,500 to $5K Included Illnesses Cancer, Heart Attack, Major Organ Transplant, Renal Failure, Stroke, Carcinoma in Situ, Coronary Artery, Bypass Surgery 2 nd and/or recurrent illness Pays 25% of original benefit Pre-ex 12/12 Cancer/Wellness Screening Benefit $75 Taxability Post-Tax INTENSIVE CARE/CRITICAL ILLNESS Example Plan 1 Max Allowable Benefit $2500.00 Group or Individual Group Underwriting Simplified Guarantee Issue $10,000 ee/ $5,000 spouse Participation Requirement for GI 15% Coverage Amount EE - $5K - $50K; Spouse $2500K to $25K; Child $2500K to $5K Included Illnesses Cancer, Heart Attack, Major Organ Transplant, Renal Failure, Stroke, Carcinoma in Situ, Coronary Artery, Bypass Surgery 2nd and/or recurrent illness Pays 25% of original benefit Pre-ex 12/12 Cancer/Wellness Screening $75 Benefit Taxability Post-Tax 17
SHORT TERM DISABILITY PLAN MONTHLY RATE (sample) Example Plan 1 30-Year Old $500 Weekly $10.00 Benefit 40-Year Old $500 Weekly $18.00 Benefit 50-Year Old $500 Weekly $28.00 Benefit BENEFIT Group or Individual Group Guarantee Issue All Waiting Period 30 days Benefit Increments of $50, from $100 to $1,000 per week (or 60% of salary) Benefit Maximum 60% of salary to $1,000/wk Benefit Duration 12 weeks Pre-ex 12/12 Rate Guarantee 3 Years Taxability Pre-Tax or Post-Tax RFP: #1415-375 LONG TERM DISABILITY PLAN MONTHLY RATE (sample) Example Plan 1 30-Year Old $2,000 Monthly $10.00 Benefit 40-Year Old $2,000 Monthly $18.00 Benefit 50-Year Old $2,000 Monthly $28.00 Benefit Age 65 or SSNRA BENEFIT Group or Individual Group Guarantee Issue All Waiting Period 90 days Benefit 60% of salary Benefit Maximum 60% of salary to $5,000/month Benefit Duration 2 years Pre-ex 12/12 Rate Guarantee 3 Years Taxability Pre-Tax or Post-Tax 18
VOLUNTARY TERM LIFE PLAN MONTHLY RATE (sample) Example Plan 1 30-Year Old $50,000 $5.50 40-Year Old $50,000 $6.75 50-Year Old $50,000 $12.80 BENEFIT Group or Individual Group Guarantee Issue $100,000 Employee Benefit Increments of $10K, from $20K to $500K (or 5 times salary) Dependent Benefit Spouse $25K to $250K; Child $1K to $10K Pre-ex 6 month look back Accidental Death Available Yes Rate Guarantee 3 Years Taxability Post-Tax RFP: #1415-375 PREPAID LEGAL MONTHLY RATE Example Plan 1 Employee Only $16.25 Employee/Spouse $23.16 Employee/Child(ren) $30.90 Family $37.86 Network What benefits are covered Other services at additional fees Rate Guarantee National Directory Adoption, Civil, Criminal, Debt, Divorce, Estate, General Counsel, Identity theft, Name change, Personal injury, Power of attorney, Review of legal documents, Traffic Violations, Will Prep 25% discount: Bankruptcy, contested divorce, immigration, pre-nuptial agreements, parent benefits 5 years 19
FSA ADMINISTRATION Example Plan 1 Max Allowable Benefit $2500.00 Plan Year November 1- October 1 Run Out 15 months to incur Debit Card included Yes or no PEPM Fee Annual Fees/ Start up fees COBRA ADMINISTRATION Example Plan 1 Implementation Fee $2500.00 Renewal Fee $500 Initial Notification Mailing Included Qualifying Event Included PEPM Fee $.45 Other Fees $15 / carrier / month for carrier reconciliation Rate Guarantee 3 years 20