Second_Set_of_Questions_Health_and_Life_Insurance_Contract_SolicitationQ_and_A.docx

Health and Life Insurance Contract Solicitation

RFP: SMY30015R0004

Second Set of Questions Note to Offerors:

The information contained within these questions and answers and in Exhibit C is provided for information purposes and under no circumstances shall it be construed to change any terms and conditions or requirements within the solicitation.

If any answer does address a change in the solicitation, it will reference an Amendment. In addition, for any answer provided regarding the claims data incurred under the existing contract, please be advised that this data may not be indicative of future claims and could change.

Also, offerors are advised that there are changes in requirements in this solicitation which were not in the previous contract to include an increase in the number of participants. However, the U.S. Government is not going to describe the changes from the current contract to new contract and it is not going to identify the increase in the number of participants.

Consequently, it is each offeror’s decision on whether to use or not to use this information after carefully reviewing the requirements and terms and conditions of this solicitation and determining its proposed premiums. Under no circumstances shall the U.S. Government be liable for this data or shall it become basis for a request to adjust the premium rates once the contract is awarded. Rather, offerors are advised any adjustments to contract premium rates shall be in accordance with the Price Adjustment clauses B.4 and B.8 of the contract awarded.

Questions:

1. In Exhibit C (Historical Claims), the Health Insurance section is missing the calendar month - is it from 04/01 to 03/31 of the following year? This is most important for the 2014/2015 period; we want to makes sure the premium and claims are for a full 12 month period. So please provide the start and end months in the Health Insurance section of Schedule C

Answer:

The health insurance coverage is for a year (exp:- Feb 01 2014 thru January 31 2015). See Amendment A005, Exhibit C for further changes to the Health insurance chart.

2. In Exhibit C (Historical Claims), the Life Insurance section is missing the premium information (it lists only the claim amounts). Please update the Life Insurance section of Schedule C with the premium information. Without the premium history we are unable to determine the loss ratios (claims/premium ratio) which is instrumental in assessing risk correctly (neither over nor under) to determine the best value premium.

Answer:

Exhibit C for the life insurance chart has been revised in Amendment A005, as set forth below:

Term Life Insurance

Premiums

Claim Paid

3. As per the Diplomatic Ordinance 1949 and Diplomatic Privileges (Vienna Convention) Act 1996 [Act 636] and to the best of our knowledge, the US Embassy and other Diplomatic Missions in Malaysia are exempt from GST. With reference to the above would you please clarify the following:

a. Do the Premiums in Exhibit C include or exclude the 6% GST?

Answer:

GST must be entered as a separate line item for health insurance and as set forth in the solicitation. Also, GST is included in the premium rates provided for health insurance in Exhibit C. See Answer B. below for life insurance.

b. Confirm if the pricing tables B.2.3 to B.2.6 should indeed include 6% GST ?

Answer:

GST is not required for Life Insurance in Malaysia but it is required for health insurance . Offerors must include GST for health insurance as set forth in the solicitation.