Life and Disability Insurance

The City of Madison Human Resources Division is requesting proposals for Basic Life and AD&D, Voluntary Life and AD&D, Short-Term Disability, and Long-Term Disability insurance coverage for approximately 3,103 active employees, 230 early retirees, and 1,232 post-65 retirees, with proposals due August 31, 2026 at 2:00 PM Central Time and two question-submission rounds (July 31 and August 14, 2026). A local-vendor preference of 5 points on an 100-point evaluation scale applies. The contract will be administered by the City's Human Resources Department with M3 Insurance Solutions Inc. as the City's broker agent and becomes effective July 1, 2027.

The procurement seeks comprehensive life and disability insurance replacing The Hartford, the incumbent carrier since February 1, 1993. Basic Life coverage is calculated as the employee's highest annual salary rounded to the next thousand dollars (minimum $10,000, maximum $200,000), with three supplemental tiers at 50%, 100%, or 200% of annual salary (respective maxima $100,000, $200,000, $400,000). Dependent coverage includes spouses to age 65 and children to age 26 (or older if disabled before age 26). Short-Term Disability pays 65% of pre-disability earnings capped at $1,875 weekly; Long-Term Disability provides 65% monthly income to a maximum of $8,175. Proposers must submit firm rate guarantees of no less than three years; longer guarantees are strongly preferred. Pricing must be submitted using the standardized Form A Price Proposal template with rates per $1,000 of coverage across ten age bands (14–24 through 65+) or per-payroll composite rates.

Evaluation allocates 65 points for technical merit, 30 points for cost, and 5 points for local-vendor preference. Cost scoring uses a formula-based methodology with the lowest-cost proposer receiving full points. Proposers are encouraged to submit implementation credits, transition credits, or other one-time financial concessions. Contractors with 15 or more employees earning $50,000 or more in aggregate annual business with the City must file an Affirmative Action Plan. The City conducted a 2024 Wage & Life Equity Analysis identifying disparities in wage insurance participation and premium burden across demographic groups and issued a comprehensive Needs Analysis emphasizing financially stable administration, 24/7 customer service, rapid claims payment within 5–10 business days, and user-friendly online enrollment platforms.