Q&A Response_RFP NO. DMS-2223-084.pdf

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Attached to
Group Term Life Insurance
Solicitation number
RFP-05291
Issued by
Leon County, Florida

About this file

This document is a Q&A response related to an RFP (Request for Proposals) issued by the Florida Department of Management Services (the Department) for Group Term Life Insurance (RFP NO.: DMS-22/23-084). The RFP is seeking to establish a contract for group term life insurance benefits covering employees and retirees of the State of Florida. The RFP provides details on the current enrollment, claims experience, and policy information, and responds to various questions from potential bidders. The Department is looking to award a single contract, though reserves the right to award to multiple vendors or make no award. The annual spend for the contract is estimated to be $36,300,000.

The Q&A responses provide clarification on various aspects of the RFP, including the census data, claims experience, current rates and plan design, and operational details such as beneficiary management and conversion/portability. The Department has indicated that they do not anticipate extending the RFP timeline. The RFP covers employees and retirees across the state, with specific references to Leon County and the City of Tallahassee. The Department utilizes a third-party administrator, Alight, for enrollment and data transmission, while the Department is responsible for billing.

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RFP No.: DMS-22/23-084 Q&A: Group Term Life Insurance Page 1 of 7

4050 Esplanade Way

Tallahassee, FL 32399‐0950

Ron DeSantis, Governor

Pedro Allende, Secretary

Request for Proposals (RFP) Division of State Group Insurance

Group Term Life Insurance: RFP NO.: DMS-22/23-084 Questions and Answers

The Department’s responses to timely submitted questions are below.

Question Number

Question Response

1 The employee Optional Life volume of $8.3B on the census provided appears to be understated when compared to the May 2023 billed volume of $9.8B. Please provide a revised census with the correct volumes.

The Department does not understand the question. The Department is unaware of how the $9.8B amount is being calculated by the vendor asking the question.

2 The General Instructions tab states a maximum rate for basic active life. Is there a maximum rate requirement for basic retiree, employee optional, spouse or child life over the initial and renewal term periods?

All maximum rates are identified within the solicitation document.

There is only a maximum rate for basic active life.

3 Please provide five (5) years claim experience (broken out by Basic, Supplemental, Supplemental Dependent, AD&D and Retiree) including, o Paid and constant premium o Paid claims and reserves o Claim listing including, Date of Death, Date Paid, Amount Paid o Premium Waiver Listing including, Date of Birth, Date of Disability, Gender, Carrier Reserve, and Face Amount

See Exhibit 3 - Active Basic Life Claims Experience.

4 When was the last True Open Enrollment? The Department has annual “passive” open enrollments for all benefits, but has not had an “active” open enrollment for Life during the past five years.

Q&A: Group Term Life Insurance Page 2 of 7

5 Please provide the plan change history last five (5) years.

A copy of the current contract can be found at the following link:

https://facts.fldfs.com/Search/Con tractDetail.aspx?AgencyId=72000 0&ContractId=SI034&Tab=4

6 Please provide the Annual Lives history last five (5) years.

See Exhibit 1 - DSGI Life Enrollment CY 2018 through 2022.

7 Please provide the rate history last five (5) years.

A copy of the current contract and payment history can be found at the following link https://facts.fldfs.com/Search/Con tractDetail.aspx?AgencyId=72000 0&ContractId=SI034&Tab=4

8 Please provide the recent monthly bill. See Exhibit 2 - Minnesota Life Vendor Payments (Invoice).

9 Is Beneficiary Management part of the current offering from Securian? If so, is that service being requested to be included?

A copy of the current contract can be found at the following link:

https://facts.fldfs.com/Search/Con

10 Please provide current and historical rates by line of coverage back to 2018.

A copy of the current contract can be found at the following link:

https://facts.fldfs.com/Search/Con

Q&A: Group Term Life Insurance Page 3 of 7

11 Please provide the following experience exhibit from 1/1/2018 through 4/30/2023, split into each coverage in scope of this RFP:

Paid premium

Constant premium

Enrolled lives

Average volume

Claims paid

Interest paid

Claim count

Portability/conversion charges

Reserves as of the end of each period o Pending claim reserves o IBNR reserves o Waiver of Premium reserves

See Exhibit 3 - Active Basic Life Claims Experience.

12 Please provide a detailed death claim listing to correspond with the requested experience data that includes the following information:

Date of birth

Gender

Coverage

Date of death

Date reported

Date paid

Claim Amount

See Exhibit 3 - Active Basic Life Claims Experience.

13 Please provide a summary of COVID claims, including both paid amount and claim count, split by year (2020, 2021, 2022) and split by coverage.

This information is not applicable to the RFP. The Department does not have the information available.

14 Please provide a detailed listing of open and closed Waiver of Premium claims by coverage that includes the date of disability, birthdate, gender, face amount, ultimate amount, and reserve currently being held.

See Exhibit 3 - Active Basic Life Claims Experience.

15 Please provide a current monthly invoice that includes lives, volume, and premium split by coverage.

See Exhibit 2 - Minnesota Life Vendor Payments (Invoice).

16 Please provide the current certificate for all plans in scope of this RFP.

A copy of the certificates can be found at the following link under Life Insurance

Q&A: Group Term Life Insurance Page 4 of 7

Resources/Publications/Certific ates:

https://www.mybenefits.myflorida.

com/health/resources

17 Have there been any plan design changes over the past five (5) years? If so, please provide the details and dates of any change(s).

A copy of the current contract can be found at the following link:

https://facts.fldfs.com/Search/Con tractDetail.aspx?AgencyId=72000 0&ContractId=SI034&Tab=4

18 Was there an open enrollment or a "free one up" or any other underwriting liberalization in the last 5 years? If so, specify the date and conditions.

No.

19 How long has the Waiver of Premium disability provision been in place under the Life plans?

The provision has been in place since at least 2008.

20 Does State of Florida expect to pay premiums within a 30-day grace period?

Payments will be made in accordance with the Contract’s terms and Florida Statutes, including but not limited to, 215.422, Florida Statues.

21 Does the Department conduct death matches to facilitate the filing of life insurance claims? If so, what is the frequency and process to determine if there is a death and facilitate the claim filing?

No.

22 Would the Department want the carrier to handle any recordkeeping functions? What recordkeeping functions are performed by the current carrier? Is the cost of these included in the rate or billed for separately?

The Department manages access to coverage for our employees and ensures compliance with contract conditions. The intent of this RFP is to award a group life insurance contract. Premiums will be collected and passed along to the awarded Respondent. No additional fees are payable.

Q&A: Group Term Life Insurance Page 5 of 7

23 Section 1.6, Notice of Intent to Submit a Proposal and Data Use Agreement, indicates a Census with the following fields would be provided, however, several of the data elements appear to be missing from Attachment C. Please update the census to include the missing data elements.

The Census File (Attachment C) includes a first tab containing employee enrollment information and provides the following components:

o Date of birth included o Gender included o Home ZIP code Data is missing, please provide.

o Basic Life Plan name (if currently elected) Coverage amount is included.

Plan name is not included.

o Optional Life Plan coverage tier (if currently enrolled) included o Status (Salaried, OPS/Variable hour, or Retiree) Data is missing, please provide.

The second tab includes dependent information and provides the following components: Second tab is missing, please provide.

o Date of birth o Gender o Home ZIP code

See Addendum 1

24 The AD&D coverage is not mentioned in the RFP and there does not appear to be a separate tab for AD&D rates to be entered within “Attachment B – Price Sheet.” Please advise if AD&D is scope of this RFP and if so, where should carriers provide AD&D rates when submitting their response?

AD&D is not within the scope of this RFP. The Department is not requesting pricing for AD&D.

25 The RFP document shows a request for four client references and Attachment F shows a request for two active and two terminated client references. Please advise which is the actual request.

See Addendum 1

Q&A: Group Term Life Insurance Page 6 of 7

26 Please confirm who the beneficiary contacts to report a loss – carrier, third-party or the State?

There is no requirement that the beneficiary provide notification of death. Anyone may report the death of a covered employee to the carrier, the Department, or People First.

27 In what method is the carrier notified of a claim?

There is no requirement that the beneficiary provide notification of death. Anyone may report the death of a covered employee to the carrier, the Department, or People First.

28 Who distributes life claim forms/kits to the beneficiaries?

The awarded carrier will provide.

29 Please provide a copy of your current beneficiary life claim forms/kits.

The Department does not currently have that information immediately available.

30 Is the EOI application process accessed via single sign-on or do employees access their application by other means?

The EOI form can be found at the following link:

https://www.mybenefits.myflorida.

com/health/forms.

The EOI form can also be accessed via single-sign-on at the carrier site or mailed by the carrier upon request.

31 Who provides conversion/ portability forms to employees losing coverage?

The Department supplies employees who have experienced a loss of qualifying health benefits with a COBRA packet. The packet contains instructions on whom to contact (the carrier) for inquiries regarding the conversion or portability options for group life coverage.

32 Are there any value added services or programs offered with Life insurance that are highly utilized by your employees or their dependents?

No.

Q&A: Group Term Life Insurance Page 7 of 7

Enclosures:

Exhibit 1 - DSGI Life Enrollment CY 2018 thru 2022 Exhibit 2 - Minnesota Life Vendor Payments (Invoice) Exhibit 3 - Active Basic Life Claims Experience

33 Does the Department utilize a third-party for any of the following record keeping services and if so, who?

Enrollment

Billing

The Department has a contract with Alight to collect and transmit enrollment data to each contracted health/life services provider. The Department is responsible for generating the billing.

34 With responses to questions anticipated on 6/5 and due to the amount of missing information that would enable all bidding carriers to provide their best-in-class offer, would the Department consider an extension?

The Department does not anticipate extending the timeline.

Any changes to the RFP timeline will be included in a separate addendum.

35 One of the mandatory requirements is for the carrier to provide four (4) references, each of which is comprised of 200,000+ employees. It appears that a carrier will be considered non-responsive if these references cannot be provided.) Is there any flexibility in this requirement?

See Addendum 1. Submission of this form is no longer a requirement. All references to Form 4 are deleted in their entirety in RFP No.: DMS-22/23-084.

File details come from the government source that posted it. Updated .