Response to Offeror Questions Document.pdf

RFP#24RFP10766, Health Plan Actuary and Benefits Consultant BHRA 500 East Capitol Pierre, SD 57501-5070

Date: January 31, 2025

Subject: Respondent’s Questions & State’s Response, RFP#24RFP10766

In accordance with the subject Request for Proposals (RFP), the following are answers to respondent’s questions which have been submitted prior to the specified deadline of January 24, 2025, 5:00 p.m. CT. These questions are for informational purposes only; they do not alter the requirements specified within the RFP. Any changes to the RFP will be accomplished by the Office of Procurement Management via an addendum.

*The State's response will be in Bold font following the respondent’s questions.

1. Does the State currently have a data warehouse for its medical and pharmacy data? Is a data warehouse solution a requirement of this engagement?

State’s Response: We do utilize a data warehouse currently and would ask that we continue with the utilization of one.

2. How frequently does the State require IBNR estimates be updated/provided?

State’s Response: A formal IBNR letter for the June 30 estimate is required within 45 days following the close of the state fiscal year, typically by mid-August.

3. Please provide a sample of the current monthly cost analysis reports which include medical and prescription drug claims and SDSEHP administrative expenses.

State’s Response: We look forward to working with our selected vendor to develop a reporting structure that best meets our needs while aligning with system capabilities.

This collaboration will ensure that reporting provides meaningful insights while working within system availability and operational requirements.

4. Please provide additional detail regarding the level of communications support required.

Does this include development of the annual Benefits Guide? Other?

State’s Response: We seek a consultant to collaborate with the State of South Dakota to ensure benefit communications are strategic, effective, and well-targeted. Our consultant plays a key role in developing our benefits guide, online flipbook, and various other communication efforts.

5. Please describe assistance direct contracting with health systems and providers groups included in the scope of this engagement if any.

State’s Response: Our organization does not engage in direct contracting with health systems or provider groups as part of this engagement. We utilize a third-party administrator (TPA) for claims processing and leverage Wellmark’s network for provider access. As a result, contracting with providers is managed through Wellmark’s established agreements rather than through direct negotiations by our organization.

6. Please provide a schedule of planned RFP’s for the five years of the contract?

State’s Response: Please see question 16 for chart.

7. Approximately how many in-person meetings in Pierre or Sioux Falls will the consultant be required to attend per year?

State’s Response: We ask our consultant to participate in our annual vendor review meetings and assist with presentations and legislative testimony as needed. Additionally, in-person meetings may be required based on business needs.

8. Who is the incumbent consulting firm for this engagement?

State’s Response: Marsh & McLennan Agency, LLC

9. Please provide the annual total fees for this engagement for the prior three years

State’s Response: FY22-$460,000, FY23-$460,000, and FY24 - $462,474.11.

10. Please provide the annual total hours billed for this engagement for the prior three years

State’s Response: The current contract was not based on hours, but a flat annual total paid in 12 monthly installments. Hours provided were not included in the monthly invoices.

11. Please provide the current hourly rate(s) for services not included under the retainer

State’s Response: Any services outside of the scope of the original contract the consultant and the State will require mutual agreement to the cost of the additional services.

12. Cost Proposal 7.2: Please confirm which scope items are to be billed at an hourly rate vs.

annual fixed fee retainer. 7.2 says to provide an hourly rate for 3.8 Strategy, 3.10 Budget forecasting, and 3.11 Communications. 3.10 is also included under the annual retainer in the same section.

State’s Response: The current contract is structured as a flat annual total, paid in 12 monthly installments, rather than based on hourly billing. For all work within the scope, we prefer to maintain a similar approach unless the vendor determines that an hourly rate breakdown for certain tasks would be a more suitable option.

13. Cost Proposal 7.2: Will the State accept a rate card with different hourly rates by consultant experience level or is one composite hourly rate required?

State’s Response: An annual fee structure is preferred over an hourly rate and materials-based contract.

14. What are the total consulting fees for the current and the prior two years related to this Scope of Work?

State’s Response: FY25 renewal amount is $460,000, FY24 paid $462,474.11, and FY23 $460,000.

15. How many consulting hours were required to complete this scope of services in the current and prior two years?

State’s Response: The current contract was not based on hours, but a flat annual total paid in 12 monthly installments. Hours provided were not included in the monthly invoices.

16. Please complete the following chart as it relates to SDSEHP’s carriers and/or administrators:

Carrier/Administrator Contract Period Year anticipated for Request for Proposal

Comments

Medical Wellmark BCBS 7/1/21-6/30/24 with two additional one-year periods.

FY2026

Pharmacy CVS/BCBS 7/1/21-6/30/24 with two additional one-year periods.

FY2026

Diabetes support

– point Solution

Livongo 7/1/21-6/30/24 with two additional one-year periods.

FY2026

Point Solution Hinge Health 7/1/24-6/30/27 with two additional one-year periods.

FY2029

EAP Guidance Resources and ComPsych

7/1/21-6/30/24 with two additional one-year periods.

FY2025

Virtual Medical Doctor on Demand 7/1/21-6/30/24 with two additional one-year periods.

FY2026

Wellness LIveWellSD 7/1/21-6/30/24 with two additional one-year periods.

FY2025

Vision EyeMed 7/1/23-6/30/26 with two additional one-year periods.

FY2028

Dental Delta Dental 7/1/23-6/30/26 with two additional one-year periods.

FY2028

HSA/HRA/FSAs

(Medical and Dependent Care)

WEX 7/1/20-6/30/25 with two additional one-year periods.

FY2027

Critical Illness, Life Insurance/ Supplemental Life and AD&D, Short- Term Disability, MetLife 7/1/23-6/30/26 with two additional one-year periods.

FY2028

Long Term Care UNUM

Please provide any other carriers or administrators not listed.

State’s Response: We also collaborate with Wondr Health, RAS, Jellyvision, Claims Associates, Precision Bill Review, and Brown & Brown. Each has different contract dates, with anticipated request for proposal timelines generally aligning with those outlined in the chart above.

17. Does the Scope of Work include the management of direct contracting with providers? If so, how many hours are anticipated for this work?

State’s Response: Our organization does not engage in direct contracting with health systems or provider groups as part of this engagement. We utilize a third-party administrator (TPA) for claims processing and leverage Wellmark’s network for provider access. As a result, contracting with providers is managed through Wellmark’s established agreements rather than through direct negotiations by our organization.

18. Please provide details and define the support and communications project requirements under

Section 3.11 of this Scope of Work.

State’s Response: We seek a consultant to collaborate with the State of South Dakota to ensure benefit communications are strategic, effective, and well-targeted. Our consultant plays a key role in developing our benefits guide, online flipbook, and various other communication efforts.

19. Under SDSEHP’s current contract, what communication support is included in the Scope?

What are the current fees associated with communication projects?

State’s Response: We seek a consultant to collaborate with the State of South Dakota to ensure benefit communications are strategic, effective, and well-targeted. Our consultant plays a key role in developing our benefits guide, online flipbook, and various other communication efforts.

20. Is there a file size limit for submitting our proposal via email? If there is a limit, can we submit it by splitting it into parts or through an alternative method if it exceeds the limit? Is there any notation that needs to be put into the subject line to indicate this?

State’s Response: You may submit the proposal in multiple emails as needed, depending on file size. Please include the vendor name in the subject line, along with the email sequence and total number of emails. For example: [Vendor Name] Proposal – Email 1 of 3.

21. Is there an incumbent for the scope of work described in the RFP? If so, who is the incumbent and what were the hours and fees for each year of the agreement?

State’s Response: Marsh & McLennan Agency, LLC. FY22-$460,000, FY23-$460,000, and FY24 - $462,474.11, FY25 renewal amount is $460,000. The current contract was not based on hours, but a flat annual total paid in 12 monthly installments. Hours provided were not included in the monthly invoices.

22. What is the name of the incumbent actuarial firm, and how long have they been providing the services?

State’s Response: Marsh & McLennan Agency, LLC. Contract has been in effect since April 1, 2020.

23. Is the State satisfied with the services provided by the incumbent actuarial firm?

State’s Response: Yes.

24. Was the prior contract set up with the same fee structure as requested under section 7.0 Cost

Proposal?

State’s Response: Yes.

25. Are you able to provide the estimated or actual hours for the services performed under the prior contract for the Scope of Work sections 3.1-3.7, 3.9-3.10,3.12-3.15?

State’s Response: The current contract was not based on hours, but a flat annual total paid in 12 monthly installments. Hours provided were not included in the monthly invoices.

26. Are you able to provide the estimated or actual hours for the services performed under the prior contract for the Scope of Work sections 3.8 and 3.10-3.11?

State’s Response: The current contract was not based on hours, but a flat annual total paid in 12 monthly installments. Hours provided were not included in the monthly invoices.

27. Does the State have a preference for one blended hourly rate for all staff as compared to a set of hourly rates by role?

State’s Response: An annual fee structure is preferred over an hourly rate and materials-based contract.

28. Section 7.2 indicates that "The State asks bidders to submit an annual retainer (with a not-to-exceed maximum)" for the first set of services under the Scope of Work. Can the State clarify whether the state is looking for an annual fixed fee amount for these services or an hourly rate with a not-to-exceed maximum? These two statements seem to contradict each other.

State’s Response: We would prefer to see an annual amount; however, we understand that most contracts include a "not to exceed" clause.

29. Outside of the quarterly and annual onsite meetings noted in section 3.14, is there an expectation of other in-person meetings? If so, how many each year?

State’s Response: We ask our consultant to participate in our annual vendor review meetings and assist with presentations and legislative testimony as needed. Additionally, in-person meetings may be required based on business needs.

30. Would it be possible to receive a copy of the latest annual Actuarial Certification, IBNR and pricings reports prepared by the incumbent?

State’s Response: We look forward to working with our selected vendor to develop a reporting structure that best meets our needs while aligning with system capabilities.

This collaboration will ensure that reporting provides meaningful insights while working within system availability and operational requirements.

31. Could you kindly share the job titles of the expected evaluation committee members?

State’s Response: Commissioner of Bureau of Human Resources and Administration, Director-Executive Management Finance Office, Accountant IV, Benefits Manager, and Director of Total Rewards.

32. What are the historical hours and billing rates for this work?

State’s Response: The current contract was not based on hours, but a flat annual total paid in 12 monthly installments. Hours provided were not included in the monthly invoices.

33. Is there a total contract amount that we should not exceed?

State’s Response: Most contracts include a not to exceed amount clause.

34. Can the physical copies of the submitted proposal be spiral bound? Or is there a preferred method to bind the copies?

State’s Response: Yes, spiral bound is acceptable.