Proposal_Requirements.pdf

Proposal Requirements

Plan Designs & Differences

The City will only accept fully insured proposals at this time for all Plans (excluding the STD ASO services). The preferred Plan will at a minimum match the current benefit levels of each Plan. The City will evaluate benefits and costs for all Plan options proposed. The City will consider additional Plan options that depart from the current design that include enhanced benefits and/or reduced rates. In addition to other criteria, Plan options will be evaluated based upon the benefits and pricing proposed to determine the most competitive offer. Offeror must quote all Plan options presented on a sole source carrier basis.

Offerer must identify any and all differences between the Plan options it proposes and the City’s current Plan.

a. Plan Design

In this section describe your firm's expertise in providing Plan designs and/or alternatives to enhance benefits for members. Provide examples of manuals and other informational materials that your firm has developed and can provide. If you believe that any such manuals or materials contain trade secret information, refer to the Trade Secrets provision in the Instructions of Offerors. Include a sample enrollment package which shall minimally be comprised of a Plan brochure. Include a detailed Plan of services to be provided to the City and Plan members with information concerning how your firm proposes to accomplish the scope of services and provide comprehensive Plans.

(1) Provide a Plan proposal(s) for Basic Life with AD&D considering the parameters of the City’s current Plan which includes, but is not limited to the following:

(a) Newly eligible employees are automatically enrolled for Basic

Term Life and corresponding AD&D Insurance at the time of employment without medical underwriting.

(b) Retiree Basic Term Life with AD&D provides no age reduction for non-management retirees and a reduction of 50% at age 70 for management retirees.

(c) Employees who are eligible for increased coverage, due to salary change or promotion, are automatically updated and reflected in the next billing cycle.

(d) Coverage is 100% employer paid for active employees.

(e) The City applies imputed income tax rules in accordance with IRS regulations.

(f) Coverage includes waiver of premium for disabilities; portability;

accelerated death benefit of 50% up to $200,000 with death expected within 12 months; retiree coverage under Basic Term Life on a voluntary, retiree-paid basis (see attached retiree group insurance policy).

(g) Current coverage is provided through Standard Insurance.

(h) Current Life and AD&D Plan coverages are as follows:

(a) Basic AD&D paid by the City in the amount of two times the coverage amount is provided to covered management employees. All other active employees receive basic AD&D equal to one times their coverage amount fully paid by the City.

(b) Plans allow for changes in coverage levels based on renegotiation of collective bargaining agreements.

(2) Provide a Plan proposal(s) for Supplemental Insurance considering the parameters of the City’s current Plan which includes, but is not limited to the following:

(a) Newly eligible employees or employees who have a qualified Family Status Change have the option to enroll in the Voluntary Employee Supplemental Life Insurance, Dependent Life Insurance, and Spouse Supplemental Life Insurance programs without evidence of insurability, subject to the maximum amounts available under the Plan.

(b) Coverage is guaranteed issue during the employee's initial eligibility period as a new hire, newly benefits eligible or at a time of a Family Status Change. If a newly eligible employee chooses not to enroll during the initial eligibility period, the employee may elect to enroll during subsequent annual open enrollment, subject to medical underwriting.

When necessary, Offeror is responsible for all phases and costs of the medical underwriting process.

(c) Employees, spouses, and dependents may join the Plan at subsequent

Covered Group Amount Covered

Elected Officials $100,000

Administrative Management $100,000

Firefighters/Paramedics, Fire Lieutenants, Fire Captains, Fire District Chiefs, Police Officers, Police Sergeants and Lieutenants

1x annual salary (to nearest $1,000) Capped at $125,000

Covered Group Amount Covered

Professionals $ 20,000 moving to $25,000 for

PY27

Other active classified employees $10,000 moving to $15,000 for

PY27

Retirees/ Non-Management $ 5,000 (at own expense)

Retirees / Management (up to 1/2 Active Amount) $ 50,000 max (at own expense) open enrollments, subject to medical underwriting.

(d) Enrollment is voluntary and 100% employee paid.

(e) Employee supplemental coverage amounts are determined by salary range with a low, medium or high option.

(f) Employees are automatically eligible for increased amounts, due to salary change or promotion.

(g) Spouse and dependent (child) supplemental life insurance is currently available only to those employees who are enrolled in employee supplemental life coverage.

(h) Dependent coverage is available regardless of the level of employee supplemental coverage.

(i) Employees must be enrolled in a minimum of twice the coverage they choose for their spouses.

(j) Currently, the two dependent coverage options available are $5,000 and $10,000 and one Plan covers all eligible children at the same premium.

(k) Spouse coverage, like employee coverage, is available in three tiers: low ($10,000) level, mid ($25,000) level, and a high ($50,000) level, but the employee must be enrolled in a minimum of $20,000, $50,000 or $100,000 respectively.

(l) Premiums for the Voluntary Supplemental Life Insurance Plans are group rates.

(m) Coverage as a retiree is not available under the group plan.

(n) There are no minimum participation requirements.

(o) Current Supplemental Insurance Plan options are as follows:

SALARY RANGE LOW OPTION

COVERAGE

MID OPTION COVERAGE HIGH OPTION

COVERAGE

$30,000 - $34,999 $30,000 $60,000 $90,000

$35,000 - $39,999 $35,000 $70,000 $105,000 $40,000 - $44,999 $40,000 $80,000 $120,000 $45,000 - $49,999 $45,000 $90,000 $135,000

$50,000 or more $50,000 $100,000 $150,000 Spouse coverage $10,000 $25,000 $50,000

Child(ren) coverage $5,000 N/A $10,000

(3) Provide a Plan proposal(s) for Voluntary Accidental Death and Dismemberment (AD&D) considering the parameters of the City’s current Plan which includes, but is not limited to the following:

(a) Employees have the option to enroll in the Voluntary AD&D programs without evidence of insurability during any enrollment period, subject to the maximum amounts available under the Plan.

(b) AD&D proposals must duplicate the current coverage as described, including option to enroll in any coverage level, with the only maximum set as a multiplier of salary range.

(c) Coverage must include both “Individual and Family” coverage options.

(d) Premiums for the Voluntary Supplemental AD&D insurance Plan are group rates.

(e) All premiums are paid by covered employees or retirees who elect to continue coverage. There are no minimum participation requirements.

(f) Coverage is currently provided by Standard Insurance, with both individual and family coverage options beginning at $25,000 and increasing in $25,000 increments to $300,000.

(h) Employees who meet eligibility criteria to have benefits as a retiree may keep their enrollment, if enrolled when they retire, at the same level and rate.

(4) Provide a Plan proposal(s) for Long Term Disability considering the parameters of the City’s current Plan which includes, but is not limited to the following:

(a) Long term disability is designed to coordinate with short term coverage and the City’s “Extended Illness Leave”

(b) Offeror provides withholding and remittance of all related taxes on disability payments.

(c) LTD coverage is fully insured.

(d) “Own Occupation” Disability Period First 24 months.

(e) Elimination Period is 180 days, or the period of sick leave for which the employee is eligible, whichever is longer.

(f) Benefit Period is generally, to age 65, or to SSNRA, or 5 years, whichever is longest.

(g) Premiums are fully paid by the City.