QsAs_for_19CH5018R2000.docx

Solicitation Number: 19CH5018R2000 LE Staff Health/Life Insurance Questions and Answers

For any answer provided regarding claims data incurred under the existing contract, please be advised this data may not be indicative of future claims. Therefore, it is each offeror’s decision on whether to use or not to use this information. However, under no circumstances shall the U.S. Government (USG) be liable for this data or shall it become the basis for a request to adjust the premium rates once the contract is awarded. Rather, offerors are advised any adjustments to contract premium rates shall be in accordance with the Price Adjustment clauses B.4. and B.8 Also, any historical data incurred under the current contract is provided for informational purposes only as it may not be indicative of future data.

1. Q: Please provide for both the health portion and the life portion of this solicitation the last three full years and the current partial year of loss data by year of account including:

a. three + years premium paid A: The record of total premium for both health and life insurance is RMB 7,758,424 (2015), RMB 8,489,111 (2016), RMB 9,071,829 (2017), and RMB 4,524,257 (Feb-July 2018, six months).

b. three + years number of incurred claims A: No information available.

c. three + years amount of incurred claims A: Please see below table. This information is provided by the current vendor.

(Through March 2018 )

d. three + years total number members on June 30. For Health insurance Membership is the total number of employees + spouses + dependents on June 30 of each year. For life insurance total membership is the number of employees on June 30th of each year.

A: The current contract year is from February 1 to January 31 of the following year. Please see solicitation section J.

2. Q: We would like to know if you have been informed of Catastrophic cases presented last year, such as: Hemodynamics, Open Heart Surgery, Orthopedic Mayor Surgeries, Organ Transplant, Traumatic Accident, Cancer and Oncology Cases (Radio and Chemotherapy), and hospitalizations with more than 10 days.

A: Total 6 major illness cases Mission wide and 6 employees were hospitalized with more than 10 days.

3. Q: Does this solicitation number 19CH5018R2000 contain requirements similar to the current contract? If no what are the differences?

A: This is a new solicitation.

4. Q: Have there been any claims in excess of $10,000 within the last year? If yes please indicate the number and amounts of such claims.

A: No.

5. Q: Are their dependent children to be covered who are studying outside the country? If yes please provide the country and number of dependent children studying there.

A: The health and life insurance is a supplement to the local social insurance. Expenses which occur outside of mainland China will not be covered.

6. Please confirm prospective offers must submit proposals for both Life and Health insurance opposed to being allowed to submit proposals on both or just one of the types of coverage?

A: Prospective offers must submit both life and health insurance proposals.

7. Q: Paid claims from 5/1/2017 to as close to current as possible.

A: See Question 1.

8. Q: The renewal rate for 1/1/2018.

A. The renewal rate, or the daily insurance premium for health and life insurance, on 1/1/2018 is found in the table below. This is same daily insurance premium rate we have been using for the current contract period of February 1, 2018 to July 31, 2018.

Daily Insurance Premium for Health and Life (RMB)

9. Q: Census of all the policyholders' ages, gender, annual incomes, and occupation divided in each location Place of Performance:

Beijing, People's Republic of China A. See solicitation section J Shanghai, People's Republic of China A. See solicitation section J Guangzhou, People's Republic of China A. See solicitation section J Chengdu, People's Republic of China A. See solicitation section J Shenyang, People's Republic of China A. See solicitation section J Wuhan, People's Republic of China A. See solicitation section J

10. Q: Listing of any existing preconditions, STDs, disabilities, etc for both each individual policyholder and rider.

A: This information is not available.

11. Q: Premium history for health insurance for the current year and each of the last 5 years A: See the answer to Question 1.

12. Q: Cost of the VAT for 2015 – current A: VAT for 2015 to present has not been paid. In November 2017, the local government made a policy change on the tax rate which allows all foreign diplomatic missions to claim and collect VAT back based on invoices paid to vendors.

The VAT rate should be quoted by the bidder. The VAT depends on different factors such as the type and size of the company.

13. Q: # of persons currently hospitalized, undergoing major medical procedures, illnesses, etc.

A: See the answer to Question 2.

14. Q: A copy of the current group policy coverage. If you could provide a copy of the existing insurance contract containing all the exact written coverage, limits, deductibles, etc it would be most beneficial in accurately determining the most cost effective price while offering the exact same benefits as their current insurance coverage. We request a copy of both the Health and Life insurance coverage plans with all terms and conditions to produce the most accurate offer.

A: Offerors are advised the benefits and terms and conditions within this solicitation are required and as such, all interested offerors are advised to review all these requirements in determining their proposed firm fixed priced premiums for the base year and each option year. It should be recognize due to the number of changes in the solicitation requirements to include terms and conditions, the information included in the current contract is not considered relevant. However, if an offeror believes it is necessary to have a copy of the current contract to include the benefits therein, it can request a copy through the FOIA at the link below:

https://foia.state.gov/Request/”

15. Q: Whether ORE and AEA staff have Beijing Shebao or not?

A: Shebao is the Chinese name for the local social security insurance system. Yes, ORE and AEA employees participate in the Shebao, the local social security insurance system. However, it is important for offerors to remember both ORE and AEA employees are considered “riders” under this solicitation and the resultant contract.

16. Q: In the (Section C.1.3 and C.2.3) about the eligible participants, there is no information about AEA staff. Will they participate both health and life insurance?

A: Yes, AEA employees can participate only as riders in the same health and life insurance plans. Please refer to Exhibit C in Section J for AEA staff information.

17. Q: The payment (invoices submitted by contractor), if it has to be semi-annually?

A: Invoices must be submitted semi-annually by the contractor for payment. Please see details in Section G. 4.2.

18. Q: Please provide claims history for health/life insurance for 2017 A: See the answer to Question 1.

19. Q: In the (SectionC.1.2.5), “For employees regularly scheduled to work 30 hours or more per week, the maximum annual reimbursement for both the employees and his or her dependent is RMB 80,000 per year per person.” How about the separated yearly limitation for out-patient, in-patient and maternity or we can propose properly or shared insured amount?

A: There is NO annual limitation for out-patient, in-patient, or maternity. The yearly limitation cannot be separated. An employee has a maximum reimbursement amount of RMB 80,000 per person per year.

20. How to determine the insured amount by bi-weekly salary? The monthly salary would be 2 times bi-weekly salary?

A: Bi-weekly salary=Monthly salary*12/26.

21. Q: Age/DOB - A. See solicitation section J.

Sex- Female or Male - A. See solicitation section J.

Dependent status i.e., Coverage for:

Employee (E) - A. See solicitation section J.

Employee & Spouse (E/S) - A. See solicitation section J.

Employee & Children (E/C) - A. See solicitation section J.

Employee, Spouse & Children (E/S/C) - A. See solicitation section J.

Claims History:

22. 2013, 2014, 2015, 2016, and 2017 - the insurance carrier has this information.

A: See the answer to Question 1.

23. Catastrophic Cases - the insurance carrier will be able to identify any catastrophic claims.

A: Yes, four cancer cases Mission wide from February 1, 2017 to January 31, 2018.

24. Q: Date contract is expected to start.

A: The anticipated award date is the third quarter of FY 2018.

25. Q: Advise if previous benefit schedule for life/health/disability insurance is the same as the benefit schedule currently being requested. If so, please provide a description of benefits.

A: See the answer to Question 3.

26. Are there any persons who are currently hospitalized? If yes, please provide number.

A: See the answer to Question 2.

27. Q: Are any major illnesses (i.e. hemodynamics, open heart surgery, orthopedic major surgeries, organ transplants, traumatic accident, cancer and oncology cases) being treated?

A: See the answer to Question 2.

28. Q: Are there any pregnant employees/spouses? If yes, please provide number.

A: Yes, total 20 pregnant employees Mission wide currently; no information on spouses.

29. Q: Are there any catastrophic cases (in excess of $10,000) within the last year to date?

a. If yes, please provide numbers.

b. Status of claim – paid/incurred.

A: No.

30. Q: Are there any HIV/AIDS cases? If yes, please provide total number.

A: No.

31. Q: Are any employees currently disabled? If yes please provide total number A: No.

32. Q: Current vendor information:

A: The contractor is China Life Insurance Company, contract number SCH50013D2002.

33. Q: What currency should proposers use in submitting bids.

A: Please see solicitation Section B.2. PRICES for answer.

34. Q: Membership each of last 3 years by Single, Married and Family Status.

A: See solicitation section J.

35. Q: Percentage of local nationals.

A: 98% is local nationals. Under this plan, employees or dependents with other nationalities will receive the same benefits levels as other eligible local employees and dependents.

36. Q: Are their dependent children to be covered who are studying outside the country? If yes please provide the country and number of dependent children studying there.

A: See the answer to Question 5.

37. Q: Location(s) of insured employees.

A: See solicitation section J.

38. Q: Claims history for health insurance for the current year and each of the last 5 years A: See the answer to Question 1.

39. Q: Do the above claim numbers include claims from ORE employees? (if applicable) A: Yes, see the answer to Question 1.

40. Q: Premium history for health insurance for the current year and each of the last 5 years A: See the answer to Question 1.

41. Q: Did the premium history for insurance include the VAT? If so, what percentage of VAT was included in the historical premiums?

A: No.

42. Q: Did the premium history for insurance include Insurance Premium Tax (IPT) If so, what percentage of IPT was included in the historical premiums?

A: No.

43. Q: We hope to get more details of the last year insurance performance and accurate enrollment data.

A: See solicitation section J.

44. Has there been a capping line in previous annual physical exam? If yes, how much?

A: The current cap is RMB 400 per person per year.

45. Could you please advise the highest age for employee and spouse?

A: Employee: Age 75; Spouse: Age 67.

46. In the past 5 years, could you please advise whether there is a change for our coverage? If yes, which year and what changes?

A: See the answer to Question 3.

47. Could you please advise the number of members for the insured in the past 5 years? (Including employee and dependent) A: See solicitation section J.

48. Is there any members that already have critical diseases? How many? And what’s the diagnosis? (Including employee and dependent) A: See the answers to Question 2 and Question 23.

49. Could you please advise the AIDS benefit include the pre-existing conditions or not?

A: See the answer to Question 30.

50. Dependent’s premium is paid by employee, is there any limit of the number for the dependent enrollment? For example, one employee with one dependent, or one employee can enroll his all family members?

A: There is no limitation on dependent enrollment, but the employee’s dependent(s) must meet eligibility criteria in Section C.

51. Could you please advise the maternity and dental benefit are only covered under the social security?

A: Please see solicitation Section C1.1.

52. Is there any restriction on the types of drugs on inoculation benefit?

A: Please see solicitation Section C1.1.

53. Do the employees from ORE & AEA have social security? And what is their nationality?

A: See the answer to Question 15.