RFP #16-1170-3CS
Group Voluntary Short-Term Disability Plan and Group Basic Long-Term Disability Plan with Voluntary Buy-Up Option – County of Henrico General Government and Public Schools
Questions and Answers
May 31, 2016
Please email Debbie Foster at Wells Fargo Insurance Services @ in order to obtain additional attachments that have been referred to in this Q&A.
1. The census includes 1369 employees shown as Henrico VRS Hybrid and our understanding of the RFP is that those employees are not eligible for the Basic LTD program. Is that correct? If so, that would make the total eligible for Basic LTD 9,564 employees which is less than the 10,500 indicated in the RFP. Please confirm or correct our understanding of the eligibility. Based upon the census file revised 5/19/2016, there are currently 9,096 full-time employees eligible to participate in the Basic LTD plan after six months of full time employment. You are correct that employees shown as VRS Hybrid (1,369) are not eligible to participate in the LTD program. Part-time employees are also not eligible to participate in the LTD program. The revised census file shows 467 part-time employees.
2. Please provide a census for Voluntary STD with the options elected (1, 2 or 3). See revised census (Attachment O – Census 5.19.2016).
3. We understand that the current LTD program is self-insured. In order to properly rate this benefit, we will need historical lives covered (preferably by month) and total benefits paid to each claimant. The benefit payment data should be matched with the claim listing provided in Attachment I so that we can determine claims paid by incurred period. Please see the LTD claims files for the period 2011-2016 YTD which have been provided showing payments per individual per month.
4. Additional information for the 1st quarter of 2016 would be helpful. Please see the LTD claims file which has been provided for 2016.
5. Please confirm that employees designated as Part-Time eligible or Part-Time are NOT eligible for LTD. Confirmed.
6. Please confirm that the group also participates in Social Security and whether or not this includes all employees including police and fire. Confirmed. This includes all employees including police and fire.
7. What is the date of disability for the last claim on the list? It appears to be a typo as 10/8/2010. This 2010 claim was included because it is the only claim still open that was outside the 2013-2015 time period in the LTD claims listing provided with the RFP (Attachment I).
8. Are they willing to price this and bill it as a standard core/buy-up? That is, with dollar one billing? We would suggest classing out those earning $50,000 or more as those eligible for the buy-up and all others are simply covered by a non-contributory plan.
8600 STAPLES MILL ROAD / PO BOX 90775/HENRICO VIRGINIA 23273-0775
(804) 501-5660 FAX (804) 501-5693
Henrico will continue to offer the core employer-paid plan up to $50,000 in earnings and allow a buy-up on earnings over $50,000. Please offer your plan design that best accomplishes this goal.
9. It appears that they currently have priced the buy-up ONLY on the covered earnings over $50,000/year. Confirmed.
10. There are currently 3,636 VRS 1 and 2 employees earning $50,000 or more, but only 123 of them have elected the additional coverage. Is there a plan to increase enrollment in this plan? Would they prefer to see a two class plan? Or eliminate the buy-up completely? There are no plans to try to incent enrollment into the buy-up plan. However, as a part of implementation, employee communications may increase awareness of the buy-up option and enrollments may increase. They do not plan to eliminate the buy-up plan.
11. Please provide total paid by claimant and reserves if available. Total payment information by individual is not readily available. For this self-funded plan, reserves are not allocated by individual.
12. May we make enhancements to the plan such as including a Work Incentive Benefit? Yes
13. Is premium tax to be included? If that is standard for your fully-insured product, include premium tax.
14. Please provide enrollment count for the LTD? Please refer to the revised census file (Attachment O – Census 5.19.2016).
15. Please confirm 9,096 is the correct total eligible LTD employees? Representing all full-time employees in VRS Plan 1 and 2. Please see the answer to question #1 above.
16. Please provide the complete STD contract and any amendments. The policy, certificate, SOCs, and riders have been provided.
17. The RFP asks for us to include in tab IV a “Training Plan.” Can you please provide more detail/explanation of what you are looking for as a training plan? Please describe training you would provide to County staff related to any online reporting and to educate on your firm’s claims procedures as part of the implementation process.
18. The RFP asks that in tab II we include “Deviations from the requested plan.” Should this only be plan design deviations only? Address plan design and funding.
19. In the General Contract Terms and Conditions, item G of the RFP it’s asked that we identify any exceptions to the RFP as a separate document. This document should be separate from the Deviations requested in Tab II? If so, what tab should we include our exceptions document to the General Contract Terms and Conditions? Please include in Tab I.
20. Please provide a current bill. The County does not receive a billing invoice; instead, the County self-bills each month by sending the total amount of premiums collected by payroll deduction along with the number of employees enrolled in each waiting period option.
21. For employees electing STD, please indicate their elected plan option. Please refer to the revised census file (Attachment O – Census 5.19.2016).
22. Please verify that all employees on the census are eligible for the Core LTD plan. Full-time eligible employees with six months of service who are not eligible for the Hybrid plan are eligible for the Core LTD plan.
23. What is the current LTD claim review process? Each claim is revised for eligibility and medical support according to the LTD Plan Document (Attachment M of the RFP).
24. What is the LTD claims management program? Each claim is monitored for continued eligibility and medical support according to the LTD Plan Document (Attachment M of the RFP).
25. What is the current level of claims appeals for LTD? Appeals are rare, with approximately two appeals in the past ten years.
26. How are social security offsets calculated for LTD? The LTD benefit for any month is reduced by the amount of benefits paid by Social Security for both the claimant and any family members.
27. Please provide the Premium Equivalent (theoretical) rates for LTD. Premium equivalent rates are not available.
28. The booklet was unclear on the following provisions. Please provide further detail:
• Minimum benefit amount No
• Survivor Income Benefit No
• Substance Abuse limitations No
• Conversion provision No
• Cost of living adjustment No
• Pension Contribution benefit No
• Is there a maximum on the Buy Up option? No
• Is there a minimum LTD benefit? No
• Is the LTD Buy Up first dollar? Please provide an example of how the LTD premium is currently calculated.
LTD buy up protects an employee’s full base salary when the salary is over $50,000. If an employee’s salary is greater than $50,000, he/she may enroll to purchase additional coverage for the difference between $50,000 and the total annual salary. The premium rate is $.50 per $100 of annual salary per year.
Example of Premium for Additional Coverage:
Annual Salary $57,000
Basic Coverage $50,000
Amount to be purchased $7,000
$7,000 ÷ $100 = 70 X $.50 = $35.00 ÷ 24 pay periods = $1.46 per pay period for biweekly employees. This calculation will vary for employees on a 10 or 12-month pay schedule.
29. Please provide 1-5 years of monthly premium, lives and volume. In the LTD plan (which is self-funded), LTD premiums are only paid by employees with salaries above $50,000 /year who elect the optional buy-up coverage.
30. Is there available experience prior to 1/1/2013? Please see the updated LTD claims listing for 2013.
31. Is there available experience after 12/31/2015? Please see the updated LTD claims listing for 2011-2016 YTD.
32. Please provide claim 1-5 years of claim for both open and closed LTD claims. Please see the updated LTD claims listing for 2011-2016 YTD.
33. Open Claim Listing: Please see the updated LTD claims listing for 2011-2016 YTD.
• Date of disability
• Date of birth/Age
• Gender
• Current reserve
• Gross monthly benefit
• Valuation date
• Paid to date amount
• Net monthly benefit
• Diagnosis (ICD0)
• Prognosis
• Benefit duration
• Social Security Status
• Social Security offset amount
• Dependent social security amount
• Workers Compensation
• Pension
• Statutory Disability
• Other offsets beginning and ending dates.
34. Closed Claim Listing: Please see the updated LTD claims listing for 2011-2016 YTD.
• Date of disability
• Date of birth/Age
• Claim term data
• Paid to date amount
• Valuation date
• Net monthly benefit
• Gross monthly benefit
• Date of birth/Age
• Offsets
• Diagnosis
• Interest rate assumption
35. What is the effective date of the rates shown on the “STD SOB” exhibit? 1/1/2012
36. Has there been a rate change in the experience period? No
37. Has there been a plan change in the experience period? No
38. Please confirm that the “recorded claims” on the Experience report are paid claims. Confirmed.
39. If Leave Management is being requested: Leave Management is NOT being requested.
• Please provide 1-2 years of total submitted and approved leaves.
• 1-2 years of covered Leave Management lives by month.
• Leave Management is offered to all payroll employees including: full time, part time, temporary and those on leave – does the census contain all of these groups?
40. Who is the incumbent vendor? Aetna for the voluntary STD. As explained in the RFP, the County of Henrico’s LTD program is currently self-insured and self-administered.
• How long has the incumbent vendor been performing the services? See RFP.
• Will the incumbent vendor be eligible to bid in response to this RFP? Yes.
41. What prompted the release of this RFP? Henrico County is required to publicly procure their contracts at least every 5 years. The current STD contract expires 12/31/2016.
42. Can you please provide a copy of the most recent summary plan description (“SPD”)? A SPD does not exist as public entities are exempt from ERISA; however, the current policy, riders, certificate, SOCs, and Henrico’s STD plan brochure have been provided either as attachments to the RFP or as part of this Q&A.
43. Can you please provide the amount of commissions paid and the commission rate for each of the last three contract years? $0 – No commissions are paid on this contract.
44. Can you please provide the annual premiums for the last 5 years? See RFP Attachment G.
45. Please provide the group’s complete address. See RFP.
46. Please provide census information of all eligible and enrolled employees with date of birth, gender, annual covered salary, occupation. Please see Attachment O (provided with the RFP) and the Revised Attachment O (census data 5/19/16) included with this Q&A.
47. What is Wells Fargo’s role in the RFP and what is the method of compensation? Fee or Commission? Wells Fargo Insurance is the employee benefits consultant for the County of Henrico and assisted the County with this RFP and will assist with the analysis of the proposals received. Wells Fargo Insurance is compensated as a consultant via a fee. No commissions are paid.
48. What are the dates of the annual open enrollment meetings? Open enrollment dates have not been finalized but generally occur in October of each year.
49. Please provide an open and closed claim detail listing for the experience period. Should include the following fields – date of disability, date of birth, gross monthly benefit, net monthly benefit, total benefits paid, social security status, offset amount and type, gender, date of termination, current reserve. Please see update LTD claims listing for 2011-2016 YTD. For this self-funded plan, reserves are not allocated by individual.
50. Can you please clarify information regarding current number of employees? See Attachment O of the original RFP and the revised census (Attachment O – census 5.19.2016.
51. Can you please provide open and closed claims exhibit? Please see update LTD claims listing for 2011-2016 YTD.
52. Does the Henrico County Government expect the vendor to participate in annual benefit fairs? If yes, can you please provide the dates and locations? Henrico expects the Successful Offeror to participate in open enrollment meetings. Times and locations have not been finalized.
53. Is there a consultant assisting in the evaluation of these proposals? If yes, please provide the name of the consultant. See response to Q. 47.
54. Is there a broker assigned to this case being compensated by commissions? If yes, please provide the broker name, percent commission and total annual dollar amount of commissions paid to broker. See response to Q. 47. Also, see Section I of RFP regarding commissions.
55. How are the benefits communicated to employees? Home mailings, electronic messaging, on site group or individual meetings, enrollment meetings, etc.? All of the mentioned communications methods are used.
56. Will the Henrico County Government accept electronic benefit communication materials from vendors and distribute them to eligible employees via work email on a periodic, weekly basis prior to and during open enrollment, and monthly, quarterly and/or semiannually basis thereafter? Henrico will work with the Successful Offeror to develop a mutually agreed upon communication strategy.
57. Is there a summary of benefits for LTD? See Attachment L and Attachment M included in the RFP.