Short- and Long-Term Disability

Collin County is seeking a vendor to provide comprehensive group benefits administration and insurance for its Short- and Long-Term Disability Programs through Request for Proposal (RFP) #2024-335. The procurement targets a vendor capable of administering disability insurance for 1,697 full-time employees and elected officials, with coverage providing 67% of weekly/monthly earnings for short-term disability (up to 26 weeks) and long-term disability (with benefits varying based on age at disability onset). Key deliverables include claims processing, online administrative platforms, customer service, reporting capabilities, and compliance with HIPAA standards. The RFP requires vendors to demonstrate financial stability, electronic capabilities, and provide references from similar public sector clients. Proposals are due by September 19, 2024, at 2:00 pm, with an anticipated contract award date of October 29, 2024, and a contract effective date of January 1, 2025. Vendors must complete detailed questionnaires addressing operational, administrative, claims processing, and technological requirements, with comprehensive documentation evaluating their ability to manage disability benefits efficiently.

The current disability insurance is administered by Dearborn National dba Blue Cross Blue Shield, with the short-term disability plan being self-insured and the long-term disability plan being fully insured. No specific set-aside designations or restrictions on respondent types were explicitly mentioned in the documentation. The existing infrastructure includes an administrative services only (ASO) arrangement, with coverage currently provided at no cost to employees working a minimum of 30 hours per week. The experience report from 2020 to May 2024 reveals varying loss ratios for long-term disability (ranging from 0% to 307%) and total short-term disability claims of $1,026,898. While specific budget ranges were not directly stated, the pricing information document includes detailed pricing tables for disability insurance administration from 2025 to 2031, suggesting the county is seeking comprehensive, multi-year pricing proposals. The census data indicates a workforce with annual rates spanning from approximately $35,000 to over $434,000, which will likely influence vendor pricing strategies.