120084 O5 BAFO Cost Proposal.xlsx

The document is a Cost Proposal for RFP 120084 O5 for Short-Term Disability (STD) and Long-Term Disability (LTD) Insurance issued by the State of Nebraska's Department of Administrative Services and State Purchasing Bureau. The procurement seeks a fully insured disability insurance program for approximately 17,221 state employees working 20+ hours per week, with STD offering first-day accident and eighth-day illness coverage at 60% income replacement for up to six months, and LTD providing a six-month elimination period with 60% income replacement. Key procurement dates include proposal submissions due December 19, 2024, at 2:00 PM Central Time, Intent to Award posting on January 8, 2025, and contract award on February 10, 2025. The initial contract term will run from July 1, 2025, through June 30, 2027, with three optional one-year renewal periods.

The cost proposal specifies that submitted premium prices will remain fixed for the first two contract years, with potential price increases not exceeding 4% and requiring 120-day advance written notice. The current program is 100% voluntary, with employees paying full premiums through post-tax deductions, and existing enrollment shows 3,100 employees in STD and 5,763 in LTD coverage. Monthly premiums are approximately $172,798.51 for STD and $87,366.51 for LTD, suggesting an annual contract value around $3.1 million. UnitedHealthcare is the incumbent vendor since July 1, 2019, and has demonstrated significant program growth, with STD premiums increasing from $1.15 million in 2019/20 to $1.95 million in 2023/24, and LTD premiums rising from $822,725 to $1 million during the same period. Vendors must maintain comprehensive insurance coverage and provide an open enrollment with no Evidence of Insurability requirement for current enrollees.