ESBD_358356_1715262542285_SBA-24-202 LTD RFP.pdf

THE TEXAS A&M UNIVERSITY SYSTEM

Office of Procurement and HUB Program

REQUEST FOR PROPOSAL

RFP NUMBER: RFP01-SBA-24-202

Group Long-Term Disability Plan

PROPOSAL MUST BE RECEIVED PRIOR TO:

2:00 P.M. Central time on June 4, 2024

EMAIL RFP RESPONSES TO:

soprocurement@tamus.edu

Subject Line: SBA-24-202 – Group Long-Term Disability Plan

NOTE: Proposal responses must be received by The Texas A&M University System Office of Procurement and HUB Program before the date and time specified for receipt of proposal in Section 2.3.

After the due date and time, the names of respondents will be made public.

REFER INQUIRIES TO:

Jeff Zimmermann, Executive Director Procurement and Business Services | HUB Program

The Texas A&M University System soprocurement@tamus.edu

All proposals shall become the property of The Texas A&M University System and the state of Texas upon receipt.

Proposals may be subject to public review after contracts have been executed. Refer to Section 4.10 for more information regarding confidential and proprietary information.

mailto:soprocurement@tamus.edu mailto:Soprocurement@tamus.edu

The Texas A&M University System RFP01 SBA-23-202 Page 2 of 46

TABLE OF CONTENTS

SECTION 1. INTRODUCTION _________________________________________________________________ 4

1.1 Scope

1.2 Background

1.3 Plan Background

1.4 Enrollment

1.5 Purpose

1.6 Benefits Philosophy

1.7 Priorities/Expectations

1.8 Calendar of Events

1.9 Schedule of Implementation

1.10 Performance Period

SECTION 2. INSTRUCTIONS FOR RESPONDENTS __________________________________________________ 8

2.1 General Information

2.2 Examination of the Request for Proposal

2.3 Submittal Instructions

2.4 Proposal Components

2.5 Inquiries and Interpretations

2.6 Selection Process

SECTION 3. SCOPE OF WORK _______________________________________________________________ 12

3.1 Required Services

3.2 Current Status of LTD Plan

3.3 Plan Design

3.4 Coverage Costs

3.5 Continuity of Coverage

3.6 Historical Enrollment, Premiums, and Experience

3.7 Premium Remittance Process

3.8 Contract Documents

3.9 Eligibility

3.10 Communications and Enrollment

3.11 Qualifications of Respondents

SECTION 4. PROPOSAL RESPONSE ___________________________________________________________ 17

4.1 Cover Letter

4.2 Company Profile

4.3 Organizational Chart

4.4 Staffing…………………………………………………………………………………………………………………………………………18

4.5 Installation Team Staffing

4.6 References

4.7 Certification

4.8 Questionnaire

4.9 Data File

4.10 Confidential and Proprietary Information

4.11 Deviations

4.12 Alternative Plan Design

4.13 Supplemental Information

The Texas A&M University System RFP01 SBA-23-202 Page 3 of 46

4.14 HUB Subcontracting Plan

SECTION 5. GENERAL TERMS AND CONDITIONS ________________________________________________ 21

Exhibit A – Execution of Offer

Exhibit B – Non-Collusion Affidavit

Exhibit C – Insurance Requirements

Exhibit D – Questionnaire

Exhibit E – Supplemental Files to RFP Instructions

Exhibit F – HIPAA Business Associate Agreement

The Texas A&M University System RFP01 SBA-23-202 Page 4 of 46

SECTION 1 - INTRODUCTION

1.1 Scope

The Texas A&M University System (“A&M System”) is seeking responses to its Request for Proposals (“RFP”) from qualified vendors (“Respondent”) licensed to operate in the state of Texas to provide a fully-insured group long-term disability insurance plan (“LDT”) for the plan year beginning September 1, 2024. The A&M System desires proposals that represent the best combination of quality and cost.

It is the intent of the A&M System to establish a services agreement (“Agreement”) with one vendor to meet these needs. The resultant Agreement will be between the selected vendor and the A&M System.

By submitting responses, each Respondent certifies that it understands this RFP and has full knowledge of the scope, nature, quality, and quantity of the work to be performed, the detailed requirements of the services to be provided, and the conditions under which the services are to be performed. Each Respondent also certifies that it understands that all costs relating to preparing and responding to this RFP will be the sole responsibility of the Respondent.

1.2 Background

The Texas A&M University System is one of the largest systems of higher education in the nation, with a budget of $7.8 billion. Through a statewide network of 11 universities, a comprehensive health science center, eight state agencies, and the RELLIS Campus, the A&M System educates more than 153,000 students and makes more than 24 million additional educational contacts through service and outreach programs each year. System-wide, research and development expenditures exceed $1 billion and help drive the state’s economy. More information about The Texas A&M University System and all of its member universities and agencies (“Member” or “Members”) can be found at the A&M System About page.

1.3 Plan Background

The A&M System offers a fully-insured, voluntary LTD plan with benefits designed to be a source of income if the employee is unable to work for an extended period of time due to disability. Benefits are provided after a 90-day qualifying period of disability. Employees may use sick leave, vacation time, or apply for sick leave pool to assist with covering the 90-day qualifying period. New York Life currently provides these services. The A&M System is required by law to rebid contracts at least every six years. The A&M System intends to continue to fully-insure the LTD plan. The System Benefits Administration website is available at https://www.tamus.edu/benefits/long-term-disability/ to review details of the current LTD plan offered by the A&M System.

1.4 Enrollment

The A&M System currently has 34,825 benefit-eligible employees. Current enrollment in the LTD plan is 12,113. Along with the RFP instructions, there was an additional supplemental file that you should have downloaded. The file, named All Benefit Eligible Employees - LTD, provides demographic information for all those who are enrolled in a benefit plan and identifies those who are currently enrolled in LTD coverage.

Exhibit E provides further information about the data found on the file.

The vast majority of employees participate in Social Security. There are about 90 county extension agents who do not participate in Social Security.

1.5 Purpose

This RFP provides detailed information about the A&M System and its benefit needs and provides the required format for the vendor’s response. Proposals containing any deviations may be considered by the A&M System, however, deviations must be identified and described in detail in order to be considered.

http://www.tamus.edu/about/ https://www.tamus.edu/benefits/long-term-disability/

The Texas A&M University System RFP01 SBA-23-202 Page 5 of 46

The intent of this RFP is to allow all Respondents to provide a sufficient amount of data that will enable the A&M System to assess the proposal and qualifications of the Respondent. To this end, each Respondent shall furnish, as a part of the proposal, a complete general description of experience in their respective fields.

Respondent is to independently investigate and verify, at its own discretion, all information acquired from the A&M System or from any other source which is relied on by Respondent in the preparation of its proposal.

1.6 Benefits Philosophy

The A&M System’s benefit programs are viewed as an important part of the total compensation package.

It is expected that the benefits offered will attract new employees, promote the retention of career employees and reward retired employees for their service. Therefore, superior quality and responsiveness to participants’ needs are essential.

The A&M System is committed to providing eligible employees, retired employees and their dependents access to group benefit plans of the highest quality at the lowest possible cost to the A&M System and to its employees. The manner in which the programs are funded demands strict containment of costs in order to maximize benefits for the beneficiaries.

The LTD plan is available to all benefit-eligible employees and graduate student employees at all Members.

The authority to plan, implement and control the A&M System’s benefit programs has been assigned to the Director of System Benefits Administration (the Director). The Director has the responsibility for the design and development of System-wide health plans, and for the operation and administration of other employee benefit plans.

The System Benefits Administration (SBA) staff monitors plan experience, negotiates carrier contracts, maintains official records, and ensures quality, efficiency, and statutory compliance in the benefit plans.

SBA also maintains, reports, and analyzes claims and financial data related to the plans. It is the responsibility of each Member to inform employees and retirees of their insurance eligibility, advise them about options and perform enrollment and counseling functions. These activities are usually performed in the Human Resource and/or Payroll departments of each Member.

The plans are non-ERISA plans. However, for the most part, we do comply with ERISA.

One tool to provide the A&M System administration with a continuous evaluation of benefit plans is the System Employee Benefits Advisory Committee (SEBAC). SEBAC consists of representatives from each Member, retired employee representatives, and ex-officio members. Meetings are held several times per plan year between September and May to update participants on new developments and provide a forum for public comment. The conclusions of the committee are forwarded as recommendations to the Director for consideration or action.

1.7 Priorities/Expectations

Respondents should note the following priorities and expectations with regard to the possibility of the A&M System establishing a contractual relationship with any Respondent:

(a) Ensuring a Quality Level of Service. This priority encompasses the quality of the level of service that can be provided to all Members in a timely, cost-effective manner. The A&M System is seeking a Respondent that will ensure the provision of such quality in its delivery of service through proven training techniques and established metrics.

The Texas A&M University System RFP01 SBA-23-202 Page 6 of 46

(b) Level of Experience and Expertise. Respondent must demonstrate its capabilities in providing the utmost level of experience and expertise to ensure successful implementation and delivery of services as determined by the A&M System.

(c) Delivery Efficiency as it Relates to Total Costs. Respondent must demonstrate its ability to deliver the required services in a cost-effective and timely manner while not sacrificing the quality required by the A&M System.

1.8 Calendar of Events

Activity Date

Release of Request for Proposal May 8, 2024

Deadline to Submit Questions May 17, 2024

Release of Addendum (if applicable) May 21, 2024

Responses Due June 4, 2024, by 2:00 p.m.

Presentation/Interview (if applicable) June 11, 2024

Selection of Respondent June 17, 2024

The A&M System will make every effort to adhere to the above schedule. The schedule, however, is subject to change. This may be in the event that further clarification of responses or terms of contract are in the best interest of the A&M System and/or in the event the A&M System requires more time to assure that the selection of the Respondent is in accordance with its policies, rules and regulations, as well as actual timing needs.

1.9 Schedule of Implementation

Awarded Vendor. These dates are tentative and subject to change based on the needs of the A&M System.

Within 3 weeks Upon notice of award, Vendor will provide first draft of Administrative Services Agreement, group policy, riders, group certificates, draft of HIPAA Business Associate Agreement, and any other required legal documentation.

July 1, 2024 Annual Enrollment information materials finalized and mailed

July 2024 Summary Plan Description (SPD) written and edited by the System

Benefits Administration and submitted to vendor for review

July 10 – July 31, 2024 Annual Enrollment period for all A&M System employees and retirees for September 1, 2024 effective date

August 31, 2024 Administrative Services Agreement, HIPAA Business Associate Agreement, group policy, riders, group certificates, and any other required legal documentation completed and signed by both parties

September 1, 2024 Effective date of plan

1.10 Performance Period

An initial three-year period of performance under a contract pursuant to this RFP will commence on

The Texas A&M University System RFP01 SBA-23-202 Page 7 of 46

September 1, 2024. Rates must be guaranteed for the three-year period through August 31, 2027. Assuming satisfactory performance and terms and fees are mutually agreed upon in writing prior to the expiration of the agreement, an affirmative renewal for up to three years may be allowed. In the event of successive affirmative renewal(s), the maximum period of performance pursuant to this RFP ends August 31, 2030.

Any renewal must be agreed to in writing by both parties.

The Texas A&M University System RFP01 SBA-23-202 Page 8 of 46

SECTION 2 – INSTRUCTIONS FOR RESPONDENTS

2.1 General Information

This RFP outlines the services and proposal requirements in Section 3. Proposals are to be in accordance with the outline and specifications contained herein, are to remain in effect a minimum of 180 days from the date of submission and may be subject to further extensions as negotiated. A statement to this effect should be contained in the Respondent's cover letter.

Each proposal shall be prepared simply and economically, providing a straightforward and concise description of the Respondent’s ability to meet the requirements of this RFP. Emphasis shall be on completeness, clarity of content and responsiveness to the offer requirements.

This RFP contains specific requests for information. Respondents are encouraged to examine all sections of this RFP carefully, in that the degree of interrelationship between sections is critical. In responding to this RFP, Respondents are encouraged to provide any additional information they believe relevant.

Clause headings appearing in this RFP have been inserted for convenience and ready reference. They do not purport to define, limit or extend the scope or intent of the respective clauses. Whenever the terms “must", "shall", "will", "is required”, or "are required” are used in the RFP, the subject being referred to is to be a required feature of this RFP and critical to the resulting submittal.

In those cases where mandatory requirements are stated, material failure to meet those requirements could result in disqualification of the Respondent's response. Any deviation or exception from RFP specifications must be clearly identified by the Respondent in its submittal.

Expenses for developing and presenting proposals shall be the entire responsibility of the Respondent and shall not be chargeable to the A&M System. All supporting documentation submitted with this submittal will become the property of the A&M System.

By submitting a proposal, Respondent agrees that Respondent and Respondent’s employees and agents are independent vendors and have no employer-employee relationship with the A&M System. The A&M System shall not be responsible for the Federal Insurance Contribution Act payments, federal or state unemployment taxes, income tax withholding, Workers’ Compensation Insurance payments, or any other insurance payments, nor will the A&M System furnish any medical or retirement benefits or any paid vacation or sick leave.

The A&M System reserves the right to alter the specifications of its benefit programs and subsequently negotiate with the selected Respondent as needed to comply with any required changes.

In the event of a change in condition which may affect the group long-term disability insurance plan services for which proposals are solicited, the A&M System will expect a good-faith effort from any Respondent selected, to absorb additional liabilities during the term of the contract without requiring rate increases until the next following renewal date. Such changes in condition include, but are not limited to, the following:

• Rules of the Texas Department of Insurance.

• Opinions of the Attorney General of the state of Texas.

• Federal and State statutes, court decisions and regulations from agencies and departments that may affect employment and benefit programs.

2.2 Examination of the Request for Proposal

Before submitting, each Respondent will be held to have examined A&M System requirements outlined in Section 3 and satisfied itself as to the existing conditions under which it will be obligated to perform in

The Texas A&M University System RFP01 SBA-23-202 Page 9 of 46 accordance with the specifications of this RFP.

No claim for additional compensation will be allowed due to unfamiliarity with the specifications and/or existing conditions. It shall be understood that the Respondent has full knowledge of all the existing and/or revised conditions and accepts them "as is."

2.3 Submittal Instructions

All proposals must be received by the A&M System no later than 2:00:00 p.m. Central Time, June 4, 2024 electronically via email to soprocurement@tamus.edu with the subject line of “RFP01 SBA-24-202 – Group Long-Term Disability Plan”. The sent time indicated within the A&M System email server shall be used for the receipt and acceptance of the response. A file sharing tool may be used to submit the proposal response if large file sizes are an issue. If opting to use a file sharing tool it is recommend to send a test file prior to the due date.

It is each Respondent’s responsibility to ensure that the entire submittal response is received by the A&M System by the deadline stated above regardless of submission method. Late submittals will not be considered under any circumstances.

Submittal File Format: Submission shall be saved as two (2) separate files in Adobe Portable Document Format (PDF) according to the items listed below and named as such: I) “company name – Proposal” and II) “company name – Forms”.

2.4 Proposal Components

The following documents and all requirements from noted sections are to be returned as part of Respondent’s proposal submittal. Failure to include these documents may be basis for response disqualification.

I. Proposal

Cover Letter (Section 4.1)

Table of Contents

Proposal (Section 4.2 – 4.13)

II. Forms

Signed Execution of Offer (Exhibit A)

Non-Collusion Affidavit (Exhibit B) – signed and notarized

HUB Subcontracting Plan (Section 4.14)

Proposal format: The proposal response shall be presented in the order listed above with sections noted accordingly for easy reference. The Table of Contents shall provide page numbers for each section of the proposal.

Forms: Additional information regarding the Execution of Offer and Non-Collusion Affidavit.

• Execution of Offer: The signature in the Execution of Offer within the electronic copy shall serve as the official signature of record. Signature can be done electronically with DocuSign, Adobe or another similar tool.

• Non-Collusion Affidavit: The Respondent signature on this document may be done electronically with DocuSign, Adobe or another similar tool. An agreement may not be executed with the awarded Respondent until this document is fully signed and notarized.

mailto:soprocurement@tamus.edu

The Texas A&M University System RFP01 SBA-23-202 Page 10 of 46

2.5 Inquiries and Interpretations

All technical questions concerning this RFP are to be directed, in writing, to Jeff Zimmermann, Executive Director, Procurement and Business Services to soprocurement@tamus.edu. Respondent may not contact other individuals at the A&M System to discuss any aspect of this RFP, unless expressly authorized by the Procurement Office to do so.

Questions regarding the RFP, including questions for more data or information beyond that included in this RFP and any attachment, should be presented in writing. Deadline for submission of questions is May 17, 2024.

Responses to inquiries which directly affect an interpretation or change to this RFP will be issued in writing by addendum/amendment and posted to the Electronic State Business Daily (ESBD) according to the schedule in Section 1.8. CLICK HERE for the posting to obtain all documents related to this RFP. You may also copy and paste the following link (http://www.txsmartbuy.com/esbd) into your browser and input Agency Number “710” and select “Posted” for the Status.

All such addenda/amendments issued by the A&M System prior to the time that proposals are received shall be considered part of the RFP, and the Respondent shall consider and acknowledge receipt of such within Exhibit A. Addendums issued and not acknowledged by the Respondent shall be considered accepted. Only formal written addenda issued by the A&M System in response to an inquiry shall be binding. Oral and other interpretations or clarification will be without legal effect.

2.6 Selection Process

Proposals submitted in response to this RFP shall be evaluated on the basis of the criteria listed below with the selection being the proposal that the A&M System deems to represent the best value to the A&M System. The list of criteria is not exhaustive and is not listed in order of importance. While the criteria shall provide the basis for an objective evaluation of each proposal, the experience and judgment of the SBA staff and the evaluation committee shall also be important in the selection process.

• Compliance with the requirements listed in the RFP

• Vendor License

• Financial Strength and Stability

• Administrative Capability

• Customer/Member services

• Past experience

• Costs

• Organizational flexibility

• References

• Finalist presentations

The A&M System is not required to select the lowest priced proposal but will take into consideration other factors such as those enumerated above.

The RFP provides the information necessary to prepare and submit proposals for consideration by the A&M System. All properly submitted proposals will be reviewed, evaluated, scored and/or ranked by the A&M System. The A&M System may compile a final ranking of the Respondents in the order that they provide the overall “best value” to the A&M System based on an evaluation of the responses to the RFP. The A&M System may interview one or more of the top ranked Respondents as part of the evaluation process.

After proposal tabulation and such investigation of Respondents as the A&M System deems appropriate, an award may be made to the Respondent whose proposal it judges to represent the best value to the A&M System. Final determination for award of the contract will be made on the overall best value to the A&M System. The A&M System reserves the right to reject any or all proposals.

mailto:soprocurement@tamus.edu http://www.txsmartbuy.com/esbd/filter=T&agencyNumber=710&solStatus=1 http://www.txsmartbuy.com/esbd

The Texas A&M University System RFP01 SBA-23-202 Page 11 of 46

The selection of the successful proposal may be made by the A&M System on the basis of the proposals initially submitted, without discussion, clarification, or modification. In the alternative, selection of the successful proposal may be made by the A&M System on the basis of negotiation with any of the Respondents. The A&M System shall not disclose any information derived from the proposals submitted by competing Respondents in conducting such discussions.

All proposals must be complete and convey all of the information requested to be considered responsive.

If a proposal fails to conform to the essential requirements of the RFP, the A&M System alone will determine whether the variance is significant enough to consider the proposal susceptible to being made acceptable, and therefore a candidate for further consideration, or not susceptible and therefore not considered for award.

A&M System may perform reference checks and seek further information, as needed from all Respondents whose proposals A&M System, at its discretion, considers viable, based on the initial evaluation and scoring.

The Respondent’s response to this requirement officially authorizes A&M System to contact these organizations to discuss the services and other considerations which the Respondent has provided to such organizations and authorizes the organizations to provide such information to A&M System and Respondent shall and hereby does release and hold harmless A&M System, the state of Texas, and the organization of any and all liability whatsoever, in connection with providing and receiving all such information. Any negative responses received from reference checks may be grounds for disqualification of the proposal.

The A&M System may cancel this RFP or reject proposals at any time prior to an award and is not required to furnish a statement of the reasons why a particular proposal was not deemed to be the most advantageous. The selection of the successful proposal may be made by the A&M System on the basis of the proposals initially submitted, without discussion, clarification, or modification. In the alternative, selection of the successful proposal may be made by the A&M System on the basis of negotiation with any of the Respondents. The A&M System shall not disclose any information derived from the proposals submitted by competing Respondents in conducting such discussions.

By submitting its proposal in response to this RFP, Respondent accepts the evaluation process and acknowledges and accepts that determination of the “best value” firm will require subjective judgments by the A&M System.

The Texas A&M University System RFP01 SBA-23-202 Page 12 of 46

SECTION 3 – SCOPE OF WORK

3.1 Required Services

Notwithstanding other sections of this RFP which describe administrative interactions, Respondents are advised of the administrative requirements listed in this section of the RFP. The selected Respondent will become responsible for these items and services to the A&M System upon the award of any contract. Any cost associated with these items and services must be included in your proposal.

a. Benefit contracts, affirmed by the A&M System as to form and content in accordance with state and federal statutes, and technical and legal assistance in the administration thereof.

b. Management agreements, in addition to any benefit contracts which formalize the A&M System’s relationship with any carrier.

c. Communication materials necessary for the proper explanation of the services subject to editing of format, content and final approval by the A&M System.

d. Claim management and processing.

e. Monthly, quarterly, and annual management reports, including but not limited to utilization, patient satisfaction, and case management information as agreed to by the A&M System and the Respondent.

f. Ad hoc claim/utilization reports or analyses as requested by the A&M System which do not represent extraordinary data processing effort by the Respondent.

g. Actuarial analysis and reports demonstrating the appropriate premium rates and reserve levels.

h. If evidence of insurability is required, professional underwriting services for the evaluation of late applications which may be subject to approval based on medical history.

i. Annual accounting of all financial transactions involving the A&M System including, but not limited to all premiums, claims, reserve changes, interest earnings, and retention.

3.2 Current Status of LTD Plan

The Group LTD Plan is a fully-insured LTD program. The A&M System has no current intentions of self-funding the plan and intends to maintain this coverage consistent with the current funding structure.

The vast majority of LTD participants are responsible for paying the entire premium. Premiums are deducted on a post-tax basis.

If an employee waives A&M System medical coverage and certifies that he/she has alternate medical coverage, a portion of the state/employer contribution for health coverage (currently $445.02 for full-time and $222.51 for part-time) may be used to pay for other optional insurance coverage—alternate basic life, AD&D, dental, vision, and LTD, in that order. Currently, 551 employees out of the 12,113 enrolled in LTD coverage are using employer provided funds to pay for their LTD coverage. The A&M System’s plan year corresponds to the State and A&M System fiscal years which begin on September 1 and end on August 31.

The A&M System requires detailed information regarding the proposing organization’s methodology for calculating IBNR reserves and active/disabled life reserves. Reserve calculation formulas are subject to negotiation with the A&M System prior to signing a contract.

3.3 Plan Design

Employees are not required to provide Evidence of Insurability to enroll as a new-hire, during open enrollment or within 31 days of a Life Event.

The Texas A&M University System RFP01 SBA-23-202 Page 13 of 46

If an employee becomes disabled, the LTD plan pays 65% of the employee’s base pay minus other disability benefits the employee is eligible to receive. Other sources of disability benefits include, but are not limited to other group disability plans, workers’ compensation, unemployment compensation, Social Security payments, and other government plans. Monthly LTD benefits are also reduced by any sick leave or vacation pay received. The LTD benefit is not reduced by benefits from the Teacher Retirement System, the Optional Retirement Plan, or a former employer’s retirement plan unless the employee receives payments while receiving LTD benefits.

The maximum monthly benefit is $8,000. The minimum monthly benefit is $100 or 10% of the employee’s monthly benefit before deductions for other income benefits, whichever is greater. Benefits become payable after 90 days of disability. Partial disability benefits are also available.

Employees continue to receive disability benefits after 60 months if they cannot do any job for which they are or could become qualified by training, education or experience.

Monthly payments (except for non-organic mental impairments) continue until the employee’s disability ends, the employee dies, or until the greater of the reducing benefit duration or social security normal retirement age, whichever occurs first.

If an employee is unable to perform all of the duties of his/her job because of non-organic mental impairments, benefits will be received for a maximum of 24 months.

The Plan Booklet and other LTD-related documents describing the LTD benefit can be found at https://www.tamus.edu/benefits/long-term-disability/.

When you downloaded the RFP, you should have also downloaded the supplemental file named LTD Certificate as listed and described in Exhibit E. If you failed to download this file, you can do so by returning to the ESBD.

BASE YOUR QUOTE ON THE SAME BENEFIT DESIGN THAT IS CURRENTLY IN PLACE.

3.4 Coverage Costs

The premium amounts are and will continue to be based on the employee’s annual salary and whether the employee uses tobacco products or not. A mid-year pay increase would increase a participant’s monthly benefit, should the participant become disabled. However, the participant would not be required to pay additional premiums for the increased amount until the following September 1. Coverage costs are completely paid by the employee, unless the employee waives A&M System Health coverage, in which case he/she may choose to apply a portion of the state contribution towards the LTD premium.

3.5 Continuity of Coverage

Insured persons shall not lose coverage solely by reason of change in insurers. For example, persons who are not actively at work on the effective date will be assured continuity of coverage if their insurance would otherwise have been continuous except for the change in insurers.

3.6 Historical Enrollment, Premiums, and Experience

Along with the RFP instructions, there was an additional supplemental file that you should have downloaded. The file, named Historical Enrollment, Demographics & Premiums - LTD, provides monthly enrollment, demographic, and premium information for those enrolled in the LTD benefit from FY2020 through 12/31/2023. Exhibit E provides further information about the data found on the file. If you failed to download the file, you can do so by returning to the ESBD.

The LTD experience exhibit below provides historical premium, claim, and reserve information.

https://www.tamus.edu/benefits/long-term-disability/

The Texas A&M University System RFP01 SBA-23-202 Page 14 of 46

Along with the RFP instructions, there was an additional supplemental file that you should have downloaded named LTD Claims Experience. Exhibit E provides further information about the data found on the file. If you failed to download the file, you can do so by returning to the ESBD.

Monthly rates per $100 of monthly salary for fiscal years 2019 through 2024 are provided below.

Fiscal Year Non-Tobacco Tobacco 2019 $0.178 $0.230 2020 $0.178 $0.230 2021 $0.178 $0.230 2022 $0.178 $0.230 2023 $0.178 $0.230 2024 $0.178 $0.230

3.7 Premium Remittance Process

The A&M System requires a 50-day premium lag due to its payroll processes. Premium deductions for a given month do not occur until the first working day of the following month and are then remitted by ACH to the carrier on the 20th of that month. For example, the payroll for October is calculated between October 20th and the 31st, but payroll is not processed with premiums deducted from an employee’s pay until November 1st, and premiums are remitted in total to the carrier by ACH on November 20th.

The A&M System does not require and will not respond to a list bill. A detailed file of premiums by participant is not generated and will not be provided.

In order to assist the carrier with conducting a reasonableness test regarding the amount of premium remitted by the A&M System, a report will be emailed to the carrier each month as support for the premium

The Texas A&M University System RFP01 SBA-23-202 Page 15 of 46 to be paid for the prior month.

The difference in the monthly premium on the two above reports would be due to any premium corrections for a prior period.

3.8 Contract Documents

According to the schedule stated in Section 1.9, the awarded Respondent will provide a first draft of a services agreement (“Agreement”) between both parties, HIPAA Business Associate Agreement (draft provided in Exhibit E), and any other required legal documentation to the appropriate A&M System Benefits Administration point of contact in electronic format (preferably MS WORD) for review and edits. In addition to the standard terms and conditions included in your Administrative Services Agreement, the selected Respondent must also include the following items:

• Mandatory Dispute Resolution language – The dispute resolution process provided in Chapter 2260, Texas Government Code, and the related rules adopted by the Texas Attorney General pursuant to Chapter 2260, shall be used by the A&M System and Respondent to attempt to resolve any claim for breach of contract made by Respondent that cannot be resolved in the ordinary course of business. Respondent shall submit written notice of a claim of breach of contract under this Chapter to the Deputy Chancellor and Chief Financial Officer for the A&M System, who shall examine Respondent’s claim and any counterclaim and negotiate with Respondent in an effort to resolve the claim.

• General Release and Indemnification – Language should be included that will defend, release, hold harmless, and unconditionally indemnify the A&M System, each and all of its System Members, its officers and employees, and the State of Texas from:

o Any liability that might result from discriminatory organizational practices; and o Any liability that arises from the acts or omissions of any officer, employee, agent, or representative of the contractor or individual or organization under contract to the contractor for specific services related to the administration of the A&M System’s benefit plans.

• Ability to Audit – Language should be included that will allow for audits to be performed by either the A&M System internal audit staff, the State Auditor’s Office or a third-party auditor contracted with the A&M System.

Submission and completion of these documents is not required as part of the RFP response.

3.9 Eligibility

Newly eligible employees have a 31-day enrollment period to elect LTD plan coverage. Depending upon the date the employee enrolls online or submits an enrollment form, coverage may begin as early as the date of hire, or as late as the first of the month following the 60th day after the hire date.

The A&M System manages the online enrollment process and will provide the selected Respondent with a monthly full file of all LTD participants (age, gender, coverage start date, etc.) for use in verifying coverage when a claim is filed.

The A&M System will, in all cases, determine eligibility for coverage and effective dates of coverage in accordance with its rules and procedures. If these rules and procedures differ from those normally utilized by the Respondent, it is understood that the A&M System’s determination will prevail.

Currently an employee is eligible for benefits if he/she is eligible to participate in the Teacher Retirement System of Texas (TRS) or Optional Retirement Program (ORP), and meets one of the following criteria:

• Employees Working at least 20 hours a week and having an appointment that is expected to

The Texas A&M University System RFP01 SBA-23-202 Page 16 of 46 continue for a term of at least 4 ½ months,

• Graduate student employees enrolled in graduate-level classes as a condition of employment, working at least 20 hours a week and having an appointment that is expected to continue for a term of at least 4 ½ months (although not TRS or ORP eligible)

3.10 Communications and Enrollment

The A&M System will conduct an open enrollment period for its eligible employees and retirees during the month of July, for the plan year beginning the following September 1. Between twenty and twenty-five voluntary open enrollment meetings are held across the state and the selected Respondent will be required to have personnel available to make presentations at all meetings, if requested to do so. When you downloaded the RFP, you should have also downloaded a supplemental file listed in Exhibit E named Sample Open Enrollment Meeting Calendar which contains a copy of the July 2023 open enrollment meeting calendar for your reference. If you failed to download the file, you can do so by returning to the ESBD. SBA will produce a booklet summarizing the benefit plans, and employees will make benefit selections using the A&M System’s enrollment process. Over 70% of open enrollment benefit selections are done online by employees and retirees.

All employee communication materials must be reviewed by SBA prior to release.

The A&M System will make personnel available during normal business hours to respond to inquiries regarding the status or eligibility of a participant.

3.11 Qualifications of Respondents

All entities must be able to demonstrate sufficient financial stature and operational capacity to accommodate the needs of the A&M System. To affirm financial capability, the Respondent must submit all documentation as requested in the Company Profile to be included in the RFP response (see Section 4.2).

All entities responding to this RFP must certify (see Section 4.7) that they are licensed to do business in the state of Texas and permitted to contract with the State or any of its subdivisions.

The Texas A&M University System RFP01 SBA-23-202 Page 17 of 46

SECTION 4 – PROPOSAL RESPONSE

Respondents are instructed to respond using the proposal format included in this RFP in order to expedite analysis and comparison of proposals received. Failure to use the stated format or failure to provide complete responses, may, at the A&M System’s option, disqualify the Respondent.

A complete proposal shall consist of the following items:

4.1 Cover Letter

This letter shall summarize interest and ability to provide the scope of this RFP, include a statement to the validity of the proposal, and provide a contact name for this RFP response, including title, address, telephone number, facsimile, and email address.

4.2 Company Profile

4.2.1 Provide a contact name for this RFP response, including title, address, telephone number and email address.

4.2.2 Provide the following company information:

• Legal Name

• DBA Name

• Number of Years in Business

• Type of Operation (i.e., Individual, Partnership, Corporation)

• Number of Employees (companywide)

• Annual Sales Volume (companywide)

4.2.3 Provide a general overview of the company, including where the company is headquartered, if it has a major base of operation in Texas, and if it has operated under other names.

4.2.4 Include a narrative history of the firm and its background in providing employee group benefits.

Explain the added value or service that your organization provides that distinguishes it from all others. Is your organization privately or publicly held?

4.2.5 Financial Stability – Respondent shall provide the following to verify financial stability:

• A copy of your company’s audited financial statements for the past two (2) years; or

• A financial rating of your company and any documentation (such as a Dunn and Bradstreet Analysis) which indicates the financial stability of your company.

4.2.6 Describe your company’s disaster recovery and contingency plans. Have you ever tested or actually implemented these plans?

4.2.7 Is your company currently for sale or involved in any transaction to expand or to become acquired by another business entity? If yes, please explain the impact both in organizational and directional terms.

4.2.8 Provide any details of all past or pending litigation or claims filed against your company that would negatively impact your company’s performance under an agreement with the A&M System.

4.2.9 Is your company currently in default on any loan agreement or financing agreement with any bank, financial institution, or other entity. If yes, specify date(s), details, circumstances, and prospects for resolution.

The Texas A&M University System RFP01 SBA-23-202 Page 18 of 46

4.3 Organizational Chart

Provide an organizational chart identifying the chain of authority through the company’s CEO for this account. Include names, addresses, titles, email addresses and telephone numbers for each individual.

4.4 Staffing

Describe the staff involved in the management of this account. Include names, titles, addresses, email addresses, and brief biographies of the following individuals or their organizational equivalents who will be assigned to the A&M System account(s):

• National/Governmental Accounts, Director

• Account Manager

• Account Representative

• Customer Service/Claims Processing Manager

• Account Underwriter

• Eligibility File Coordinator

4.5 Installation Team Staffing

Describe the installation team and provide the names, titles addresses, email addresses, and brief biographies of any individuals who are not included in Section 4.4 above.

4.6 References

4.6.1 Provide the name, address, email address, and telephone number of the primary contact at two public entities or corporations and two major universities of similar size and with decentralized administration that are current clients of your company.

4.6.2 Provide two references, including the name, address, email address, and telephone number for the individual who will have primary responsibility for the A&M System account.

4.6.3 Provide the name, address, email address, and telephone number of the primary contact at two large accounts that have cancelled their coverage with your organization within the past year.

4.7 Certification

4.7.1 Certify that the organization has a current license from the Texas Department of Insurance (TDI) to serve in Texas, if applicable, is in good standing with the TDI and disclose any actions that are pending or in process with TDI.

4.7.2 Certify that no commissions, broker or finders fees are included in the quoted fees/premiums or will be paid to any individual, agency or company, if your company is selected to provide coverage for the A&M System.

4.7.3 Certify that enrollment of any employee, retired employee, or dependent of the A&M System will not be limited or discouraged by “quota” or other restriction.

4.7.4 Certify against discriminatory selection or segregation of the total group of eligible employees of the A&M System by excluding, or seeking to exclude, or otherwise discriminating against any of the following classes:

4.7.5 Women: Title VII of the Civil Rights Act of 1964, as amended; Executive Order 11246 of 1965, as amended

4.7.6 Pregnant Women: Pregnancy Discrimination Act of 1978, PL95-555

4.7.7 Racial Minorities: Title VII of the Civil Rights Act of 1964, as amended

The Texas A&M University System RFP01 SBA-23-202 Page 19 of 46

4.7.8 Aged and Retired: Age Discrimination in Employment Act of 1967, as amended; Tax Equity and Fiscal Responsibility Act of 1983 (TEFRA); Deficit Reduction Act of 1984 (DEFRA); Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA)

4.7.9 Disabled Individuals and those with catastrophic and terminal diseases: Sections 503 and 504 of the Rehabilitation Act of 1973, Americans with Disabilities Act of 1990

4.8 Questionnaire

Complete the Questionnaire found in Exhibit D.

4.9 Data File

When you downloaded the RFP, you should have also downloaded the supplemental Excel file listed in Exhibit E named Proposed Plan Design and Premiums which will be used for you to provide the data file requested below. If you failed to download this file, you can do so by returning to the ESBD. The data file requested below should be provided on in Section 4.9 of your response.

Proposed Plan Design and Premiums – The Respondent must provide the proposed plan design and premiums by completing this spreadsheet. Proposed plan design and premiums must be guaranteed for the initial three-year term, through August 31, 2027.

4.10 Confidential and Proprietary Information

In order to protect and prevent inadvertent access to confidential information submitted in the response, the Respondent is to provide a schedule of all pages that the Respondent in good faith, and with legally sufficient due diligence, considers to contain any confidential and/or proprietary information.

Information in any tangible form which is submitted by Respondents will be treated as confidential until such time as a contract is executed. After that time, the A&M System is required to provide access to certain records in accordance with the provisions of Chapter 552, Tex. Government Code, now known as the Texas Public Information Act (TPIA), formerly known as the Open Records Act. By submitting a response, the Respondent acknowledges and agrees that the A&M System shall have no liability to the Respondent or to any other person or entity for disclosing information in accordance with the TPIA. The A&M System shall not have any obligation or duty to advocate the confidentiality of the Respondent’s material to the Texas Attorney General or to any other person or entity. The Respondent further understands and agrees that upon the A&M System’s receipt of a TPIA request for a copy of the Respondent contract, including the response and any exhibits to the contract and response, the only documents that the A&M System shall treat as the Respondent’s confidential and proprietary information shall be the documents the Respondent identifies as required above. It is the Respondent’s sole obligation to advocate in good faith the confidential or proprietary nature of any information it provides in its response, and the Respondent understands that the Texas Attorney General may nonetheless determine that all or part of the claimed confidential or proprietary information shall be publicly disclosed.

4.11 Deviations

In an effort to compare “apples to apples”, deviations to the RFP and the current plan design are strongly discouraged. The Respondent shall enumerate and provide a detailed description of any deviations to provisions contained in the RFP. If your organization is unable to perform any of the required administrative services or unable to administer any portion of the current services provide details.

4.12 Alternative Plan Design

The response to this RFP should be based on the same benefit design that is currently in place. No deviations to this plan design will be accepted at this time.

The Texas A&M University System RFP01 SBA-23-202 Page 20 of 46

4.13 Supplemental Information

Information or exhibits provided that are not specifically requested in Sections 4.1 through 4.11 above should be included at the end of the proposal behind a divider page entitled “Supplemental Information.”

4.14 HUB Subcontracting Plan

It is the policy of the state of Texas and the A&M System to encourage the use of Historically Underutilized Businesses (“HUB”) in our prime contracts, subcontractors, and purchasing transactions. The goal of the HUB program is to promote equal access and equal opportunity in A&M System contracting and purchasing.

Subcontracting opportunities are defined as those opportunities contracted with a vendor to work, supply commodities, or contribute toward completing work for a governmental entity. Each Respondent shall indicate what portion(s) of the scope they anticipate to subcontract, if any. The Respondent is required to submit a properly completed HUB Subcontracting Plan (“HSP”) form to document their good faith effort to solicit and use State of Texas certified HUB vendors to perform portion(s) of the scope as defined in this

RFP.

Subcontracting opportunities are possible for this RFP and, therefore, an HSP is required. Failure to submit a comprehensive HSP form with the RFP response will be considered a material failure to comply with the requirements of the RFP, and will result in rejection of the submittal. The HUB Subcontracting Plan (HSP) form shall be submitted with the RFP response by the date and time specified.

The HUB participation goal for this RFP is 15% and every Respondent shall endeavor to achieve…