Questions and Answers solicitation 19SP5026R0001.pdf

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HEALTH INSURANCE FOR LOCAL EMPLOYEES IN SPAIN
Solicitation number
19SP5026R0001QAs
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This document is a Questions and Answers (Q&A) document for Solicitation 19SP5026R0001, covering a health insurance contract for U.S. Mission Spain employees. The solicitation involves providing health insurance for three collectives: active employees and their families, ORE employees, and retirees, with employees located in multiple Spanish cities including Madrid, Barcelona, Sevilla, Palma de Mallorca, Las Palmas de Gran Canaria, Fuengirola, and Valencia.

Key details include that the government will pay 100% of premiums for employees, spouses, and children, with the 10% employee share collected via payroll deductions. Offerors can propose different premium rates for different contract years and for different age groups, including employees over 65. Contractors must be registered in SAM.gov, include mandatory insurance compensation tax in the premium, and follow specific guidelines about coverage, including not duplicating expenses already covered by Spanish Social Security or workers' compensation programs. The contract includes provisions for potential 6-month service extensions and requires premiums to be specified for a five-year period.

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QUESTIONS AND ANSWERS – SOLICITATION 19SP5026R0001

1. Shall the premium be the same for the different option years or can it be different?

It is up to the offerors to have different prices for the different years. Offerors must provide their prices for all five years.

2. Will the Government pay 100% of the premium or will the Contractor bill for 90% and the remaining 10% will be charged to the employee?

The Government will pay 100% of the premium for Employees, spouses and children.

The 10% employee’s share of the premium will be collected in form of payroll deductions.

3. Please confirm the different collectives covered in the insurance. Our understanding is as follows:

Collective 1 – Employees, spouses and children Collective 2 – ORE employees Collective 3 – Retirees

4. With regard to Administrative retention amount, we understand that this portion of the premium is not subject to price adjustment. Please confirm.

That is correct. All explanations concerning Administrative Retention amounts are explained under Section B.3 of the solicitation.

5. Where are all Embassy employees and their dependents geographically located? Is everyone in Madrid?

U.S. Mission Spain has employees in Madrid, Barcelona, Sevilla, Palma de Mallorca, Las Palmas de Gran Canaria, Fuengirola (Málaga), and Valencia.

6. Do we have to offer the same premium for retired people than for employees? There are some employees older than 65 years old. Is it compulsory to offer the same premium to them than the premium offered to younger employees?

In accordance with Section B.1.1. retirees will be included in the contract only as a rider at the prices specified in the proposal. It is up to offerors to offer different premium prices for retirees. Premium are to be included in Sections B.2.3., B.2.4., B.2.5., B.2.6. and B.2.7.

Premiums for retirees are not included in the total price of the proposal.

With regard to employees over 65 years old, premium must be provided in accordance with Sections B.2.3., B.2.4., B.2.5., B.2.6. and B.2.7.

7. (B.4 item) Premium Adjustment Based on Experience:

Can the contractor fix a CRP in the contract? CRP means “Clausula de Renovación de primas”. It´s a mathematical formula based in claims amount and the % comparing that amount with premium and internal and external expenses.

Economic price adjustment shall be made in strict conformance with Section B.4.

ECONOMIC PRICE ADJUSTMENT – HEALTH INSURANCE PREMIUMS

8. 52.2.17-8 OPTION TO EXTEND SERVICES: Following that chapter we have the obligation to continue with the coverage even if the contract finalized, what is the maximum time period of extension? Is it 6 months or up to the maximum 5 years of the contract? How are we going to calculate the premiums?

52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

The Government may require continued performance of any services within the limits and at the rates specified in the contract. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within the performance period of the contract.

Premium prices to be applied if this clause is executed are the ones established in 4th option year of the contract.

9. (C.1.3) “There is no coverage for coverages that will be reimbursed under a host country medical program….” Can we understand that if Spanish Social Security covers it, means the insurance company doesn’t have to pay for it? Could you be more explanatory about it? Can you explain what is included in the US workers Compensation Program?

This means that the Contractor will not cover expenses if they have also been reimbursed/covered by host country medical program, or worker´s compensation program, U.S. Workers compensation program or post LES worker´s compensation program.

10. C.1.3 Exclusions and Limitations. Can we include any other exclusions or is it a closed list? What if those exclusions they are prevailing practice in Spain?

Proposals must comply with requirements established in Section C of the solicitation. If any of the requirements set for in the solicitation cannot be provided in Spain because of local laws, or local insurance regulations, proposals must include full explanation and evidence proving why certain services cannot be provided as stated in the solicitation.

11. Do we have to be registered in SAM.gov? How can I provide proof of registration in

SAM?

Yes, entities must be registered in SAM before contract award. It is highly recommended that all offerors start registration process while proposals are prepared.

Offerors can download proof of SAM registration from SAM.gov and submit it with the proposal.

12. Shall the premium include insurance compensation tax (Recargo de Compensación de Seguros

As stated in Section B.1.1. of the solicitation, The Contractor shall include mandatory insurance compensation tax (Recargo de Compensación de Seguros) in the overall premium rate and as a separate charge on the Invoice.

13. Does health insurance abroad have to meet the same conditions as in Spain, or is it subject to the terms of local emergency insurance policies?

Medical expenses incurred out-of-country are specified in Section C.1.1.17

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