5-06. SCOPE OF WORK.docx

Scottsdale Unified School District #48 Scope of Work

Purchasing Department 9313 N. 95th Way Scottsdale, AZ 85258 480-484-6151

RFP#: 26004

PROJECT: ANCILLARY EMPLOYEE BENEFITS

1. Introduction Scottsdale Unified School District #48 is a political subdivision of the State of Arizona and Maricopa County. The District consists of approximately 22,000 students and approximately 3,800 employees. There are 29 school locations, (15) K -5 Elementary Schools, (3) K-8 Schools, (6) 6-8 Middle Schools, (5) High Schools including an online High School, a District office, a building services/transportation center, a materials distribution center, and other miscellaneous locations.

2. Objective

The objective of this solicitation is to establish a contract with a qualified firm (s) to provide Ancillary Employee Benefits. The purpose of this bid is to evaluate the current structure, competitiveness of costs and savings opportunities, capabilities and services available, opportunities for increased employee satisfaction, and compliance of the following components of the current health benefit programs, which include the following:

Initial contract period shall be from July 1, 2026 through June 30, 2027 with an option to renew for up to four (4) years on a year-to-year basis or portion thereof. Annual renewals thereafter will be based solely on the determination of the School District as to the performance, costs and general quality of services provided by the successful vendor(s) selected.

Prices shall be firm for the initial term of the contract.

A. Voluntary Administrative Services Only (ASO) Dental PPO Plan B. Voluntary Prepaid Dental Plan (DHMO) (Fully Insured) C. Voluntary Vision Plan (Fully Insured) D. Life Insurance – Basic & Supplemental E. Voluntary Short-term Disability F. Worksite Benefits G. Prepaid Legal H. Identity Theft I. Pet Insurance J. Health Insurance Coverage Alternatives – Advisory Services K. Flexible Spending Account (FSA) Administration L. Employee Assistance Program (EAP) M. COBRA Administration.

N. Medicare Advisory Services

Included in this RFP is the SUSD Benefit Guide, a census, current plan design summaries, plan documents, and plan experience for the Delta Dental plan. Please note: the data and documents being released with this RFP are all that will be provided. No additional data is available.

*Proposers must request to receive the Exhibits to this RFP. Contact Mary Rhodes, mary.rhodes@usi.com and Jeff Thomason, jeffthomason@susd.org for the attachments and exhibits not contained in this document. Please also identify specifically which lines of coverage you intend to bid on.

The successful vendor(s) will provide the Scottsdale Unified School District (SUSD) with the services outlined in this Scope of Work.

It is preferred that you NOT bid a separate price for any start-up/one-time administrative fees, as your fees should incorporate such expenses. Additionally, it is preferred that there are no additional costs other than your proposed fee for the noted services.

For purposes of determining final rates, all proposals must be submitted net of commissions. USI Insurance Services, LLC (USI) has been retained to facilitate this request for proposals in addition to the proposal analysis and evaluations. USI is compensated through a consulting fee, therefore, all proposals should be submitted net of commissions.

The District is looking for competitive quotes, a long-term relationship, and rate guarantees or rate caps for the full term of the contract(s) requested. All proposals must be submitted via this formal procurement process. Any proposals received outside of this process will not be considered.

If you are unable to administer any portion of the current plan designs, please be very specific in your completion of the Deviations Exhibit contained in the Vendor Forms section of this RFP. If this form is not summarized with all deviations, it will be expected that you will administer the services as they are described today in the plan document and summaries.

3. General Overview The Scottsdale Unified School District (SUSD) is currently staffed by approximately 2,382 active benefits-eligible employees.

SUSD offers a variety of benefits for eligible employees and their dependents. Hire dates in the first half of the month result in a benefits effective date of the first of the month immediately following the hire date. Hire dates in the second half of the month result in a benefits effective date of the first of the month following 30 days.

The District is a member of the Kairos Trust and has been since July 1, 2017. The following is a list of benefits received through the Trust, the carrier providing the administration, and how long the carrier has been in place:

A. Dental Preferred Provider Organization (DPPO) – Delta Dental B. DHMO Dental – Total Dental Administrators (TDA) C. Vision – Vision Service Plan (VSP) D. Life, Short-term Disability & Worksite Benefits – MetLife E. Prepaid Legal – MetLife F. Identity Theft – Aura G. Pet Insurance – United Pet Care & Nationwide H. Health Insurance Coverage Alternatives – LIG Solutions I. Flex Savings Account Administration – Health Equity J. EAP - ComPysch K. COBRA Administration – Wex

4. Dental Plans The Scottsdale Unified School District currently offers employees the choice between two (Core and Premier Plus) DPPO plans and a DHMO plan. The DPPO program is self-funded through an ASO arrangement with Delta Dental through the Kairos Trust since July 1, 2017. The administrative fee paid for the ASO dental program is $3.55 PEPM. This pricing has been in place for the last three years. There are approximately 900 employees enrolled in the Core Plan and 500 employees enrolled in the Premier Plan. Additional enrollment details are available in the census included in this RFP. Monthly claims experience is also included. Current premium equivalent rates are noted below.

PPO Dental

The District has been with Total Dental Administrators (TDA) for the fully insured DHMO plan since July of 2013, prior to joining the Kairos Trust in 2017. TDA offers the Summit Care Plus Plan to the District. There are approximately 175 employees enrolled in the TDA plan in October. Refer to additional details in the Summit Care Plus Plan attachment included in this RFP. Rate history is noted below.

Dental plans are 100% paid by employees, there is no District contribution.

The District seeks to minimize disruption to employees in the way of benefit levels, cost and dental provider network. A summary of dental providers utilized by SUSD Delta Dental members is included as an attachment to this RFP. Bidders should provide a detailed disruption analysis with their submissions.

It is the intention of the District to remain self-insured for the PPO Dental plan options, however competitive fully-insured options will be considered. Bidders can quote the PPO dental options without a DHMO option as separate contracts can be rewarded.

Interested bidders should submit a formal proposal that clearly outlines benefit provisions, cost, and strength of dental provider network in Maricopa County and comparison to Delta Dental. Attachments supporting your proposal will be acceptable.

SUSD will consider implementation and communication funds as part of your offer. Please provide your annual pricing for five years.

5. Vision Plan The District has offered the fully insured Vision Service Plan (VSP) to employees through the Kairos Trust since July 1, 2017. Coverage is on the Choice Plan with a 12/12/12 frequency. There are approximately 1200 employees enrolled in the vision program.

Vision plans are 100% paid by employees, there is no District contribution.

The District seeks to minimize disruption to employees in the way of benefit levels, cost, and vision provider network.

Interested bidders should submit a formal proposal that clearly outlines benefit provisions, cost, and strength of vision provider network in Maricopa County and comparison to VSP. Attachments supporting your proposal will be acceptable.

SUSD will consider implementation and communication funds as part of your offer. Please provide your annual pricing for five years.

6. Basic & Supplemental Life & ADD The District offers a basic life & ADD program covering all benefits eligible employees. Current rate is $0.87 per $1,000 of coverage for Basic Life and $0.014 for ADD. Additional information is available in the Benefit Guide and census attached. The October Self-Administered billing is included as an attachment in this RFP.

The plan includes a 35% age reduction at age 70 as well as an accelerated benefit.

Benefit levels vary based on benefit classification:

Class 1: All Active Fulltime Administrators & Superintendents: 1x Salary+$75,000 up to a maximum of $300,000; 1 enrolled Class 2: All Active Fulltime Assistant Superintendents and Leadership Training Team Members: 1x Salary + $75,000 up to a maximum of $250,000 Class 3: All Active Fulltime Administrators: 1x Salary + $50,000 up to a maximum of $250,000 Class 4: All Active Fulltime Employees excluding Superintendents, Assistant Superintendents, Leadership Training Team Members and Administrators: $50,000 Note the plans previously had a benefit class for retirees which is no longer needed.

Approximately 270 employees participate in the Supplemental Life & ADD program. It is offered in increments of $10,000 up to a guaranteed issue amount of $150,000 and cannot exceed 5x salary or $500,000. Coverage is available for spouses and children subject to limits as noted up to guarantee issue levels of $30,000 and $10,000 respectively. Employee and Spouse rates per $10,000 of coverage are outlined on page 41 of the benefit guide.

Child Life rates are $0.129 for Life and $0.023 or $0.152 per $10,000 of coverage.

Age reduction and EOI provisions apply as noted in attachments. Plans also include Portability & Conversion, Waiver of Premium, Will Preparation, Travel Assistance and repatriation benefits are included.

The District is looking to match the current Life Insurance program. Qualified bidders should submit a detailed proposal outlining the program provisions and rates. Any additional benefit enhancements and carrier implementation/technology credits will be considered. Package discounts for Life/STD/Worksite proposals will be considered.

7. Short-term Disability Short-term disability (STD) is available to employees on a voluntary basis. Employees have the option to elect income replacement levels of 40%, 50% and 66 2/3% up to a maximum weekly benefit of $1,500. Current rate is $0.83 per $10 of weekly benefit. There is a 7-day elimination period and benefits pay for 25 weeks. There are approximately 450 employees that participate in the program, additional details are available in the census, October self-administered billing and benefit guide.

The District is looking to match the current STD Insurance program. Qualified bidders should submit a detailed proposal outlining the program provisions and rates. Any additional benefit enhancements and carrier implementation/technology credits will be considered. Package discounts for Life/STD/Worksite proposals will be considered.

8. Worksite Benefits The District offers Accident, Critical Illness and Hospital Indemnity worksite benefits on a voluntary basis. Approximately 350 employees participate in Accident, 600 in Critical Illness and 300 employees are on Hospital Indemnity.

A high-level schedule of benefits and rates are outlined in the Benefit Guide. A $50 health screening benefit is included in the Hospital Indemnity program, benefit reduction rules apply. Employees can elect a Critical Illness benefit of $10,000, $20,000 or $30,000. Rates for Accident and HI coverage, and Critical Illness age banded rates are available in the benefit guide.

The District is looking to match the current Worksite Insurance program. Qualified bidders should submit a detailed proposal outlining the program provisions and rates. Any additional benefit enhancements and carrier implementation/technology credits will be considered. Package discounts for Life/STD/Worksite proposals will be considered.

9. Prepaid Legal Plans Low and High Prepaid Legal Plans are available to employees on a voluntary basis. Rates are $7 and $14.50 respectively. Approximately 100 employees are enrolled in the low plan, and 150 employees are enrolled in the high plan. Plan details are available in the benefit guide.

The District is looking to match the current Prepaid Legal plan. Qualified bidders should submit a detailed proposal outlining program provisions and rates. Additional benefit enhancements will be considered.

10. Pet Insurance Pet Insurance is offered through two vendors, United Pet Care on a payroll deduction basis and Nationwide on a direct bill basis. There are approximately 150 employees that participate in Pet insurance on a payroll deduction basis. Enrollment in the Nationwide program is not available.

The District would like to offer a Pet Insurance program to employees that is similar to the programs in place and requests interested bidders provide a proposal outlining pricing and programs available.

11. EAP

The District offers an EAP program through ComPsych. Six counseling sessions are included in this benefit. Additional details are included in the Benefit Guide and member summary included in this RFP. The District pays $1.00 PEPM for EAP services, this pricing has been in place for the last three years.

Interested bidders should provide a proposal outlining pricing and services for the proposed contract term

12. COBRA Administration COBRA is currently administered through the Kairos trust by Wex. Pricing for COBRA administration is $0.30 PEPM. COBRA services include:

A. General Rights Notice (GRN): Must be sent to any new plan members within 90 days of when group health plan coverage begins. WEX mails GRNs on Group’s behalf.

B. Specific Rights Notice (SRN: Must be provided within 14 days of receiving notice of a qualifying event. Includes COBRA rights, obligations, and election forms. WEX mails SRNs on Group’s behalf.

C. Print & Mail Fulfillment D. COBRA election paperwork mailed to members.

E. Premium Payments F. WEX collects COBRA payments.

G. Carrier Communications: WEX notifies carriers when COBRA premiums are received and when coverage is terminated.

H. Open Enrollment & Plan Change Notices: WEX sends standard open enrollment letters, plan change notices, and generic carrier enrollment forms to COBRA members at no extra cost. Collects enrollment forms and forwards them to carriers.

I. Additional materials are available online in member accounts.

J. Member Questions: COBRA members can contact WEX participant services for assistance.

K. Self-service resources are available via online account and website knowledgebase.

L. Education & Engagement: Education is not one-size-fits-all. WEX collaborates with employers to provide tailored resources and support for participants to improve engagement and confidence Interested bidders should provide a proposal outlining pricing and services for the proposed contract term.

13. FSA Administration The District utilizes Health Equity for FSA Administration. There are currently 86 employees that elect a medical FSA and 23 employees have elected dependent care FSA. Current cost for FSA administration $3.70 per FSA account.

Interested bidders should provide a proposal outlining pricing and services for the proposed contract term.

14. Medicare Advisory Services Comment by Denise Jewell: Do we need to include if there isn’t a price for services? Comment by Mary Rhodes: I think if they leave Kairos, they will need to see if they can continue with LIG as free on a direct basis Through the Kairos Trust, SUSD members have access to Medicare and Individual insurance advisory services provided by LIG Solutions. There is no cost to the District or to members for this service.

The District is interested in providing this service through a direct contract. Qualified bidders should provide an outline of the services available.

RFP #: 26004 Page 1 of 1 Due: January 23, 2026 image1.png