State of Nebraska Short-Term Disability (STD) and Long-Term Disability (LTD) Insurance

The State of Nebraska, through its Department of Administrative Services (DAS) and State Purchasing Bureau (SPB), is seeking a qualified vendor to provide Short-Term Disability (STD) and Long-Term Disability (STD) insurance services for approximately 17,221 state employees who work 20+ hours per week. The Request for Proposal (RFP 120084 O5) requires a fully insured disability insurance program with STD offering first-day accident and eighth-day illness coverage at 60% income replacement for up to six months, and LTD providing a six-month elimination period with 60% income replacement. Mandatory deliverables include comprehensive plan administration, claims processing, customer service, and reporting capabilities. The procurement will be evaluated using a 100-point scoring system: 25 points for Corporate Overview, 65 points for Technical Approach, and 10 points for Cost Sheet, with potential additional 20 points from oral interviews. Key dates include questions due by November 27, 2024, proposal submissions due December 19, 2024, at 2:00 PM Central Time, Intent to Award posting on January 8, 2025, and contract award on February 10, 2025. The initial contract term runs from July 1, 2025, through June 30, 2027, with three optional one-year renewal periods.

The procurement does not appear to have specific set-aside designations or restrictions limiting respondent types. Two vendors, MetLife and UnitedHealthcare, have submitted responses, with UnitedHealthcare serving as the incumbent vendor since July 1, 2019. The current program is 100% voluntary, with employees paying full premiums through post-tax deductions, and existing enrollment shows 3,100 employees in STD and 5,763 in LTD coverage. Monthly premiums are approximately $172,798.51 for STD coverage and $87,366.51 for LTD coverage, suggesting an annual contract value around $3.1 million. The incumbent vendor has demonstrated significant program growth, with STD premiums increasing from $1.15 million in 2019/20 to $1.95 million in 2023/24, and LTD premiums rising from $822,725 to $1 million during the same period. Vendors must maintain comprehensive insurance coverage including workers' compensation, commercial general liability, automobile liability, professional liability, and cyber liability, and provide a true open enrollment with no Evidence of Insurability requirement for current enrollees.