Request for Proposal/Qualifications For Insurance Broker
Request for Proposal for Professional Services Purpose: In accordance with all applicable state, federal and local regulations and ordinances, the following procedures are designed to provide for a fair and open process in awarding professional services based on qualifications, merit and cost effectiveness through a fair and open process. Scope: To any person or firm interested in providing professional services to the Housing Authority of the City of Fort Wayne (FWHA) for “Insurance Broker” or “Broker of Record” (BOR) General Requirements 1. Once a need is established for professional services, a Request for Proposal (RFP) for the specific service or contract will be prepared and advertised. 2. Advertising of the RFP will, at a minimum, include the official paper(s) of the FWHA and any other sources deemed appropriate by the FWHA for the specific professional service, posted on the FWHA website www.fwha.org and available the FWHA Finance Office at least thirty (30) days prior to the submission deadline. 3. The advertisement will include a summary of the specific service or activity and who to contact at the FWHA to receive a copy of the RFP. 4. The RFP will, at a minimum, include: A. A description of the professional service needed, including the scope of activities involved. (Attached) Contact information to obtain the RFP. (Attached) Submission Deadline, including date and time. (Attached) Submission Location will be to the Finance Department of the FWHA at 2025 S. Anthony Blvd, 2nd Floor. Submissions will be in a sealed envelope marked “Insurance Broker”.
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5. All submissions shall be kept on file during the term of the contract. 6. All submissions remain the property of the FWHA upon submission and can not 2
withdrawn for 60 days. 7. The FWHA shall award all professional service contracts or agreements based on qualification, merit and cost competitiveness. Selection criteria will also include: A. B. Name and titles of individuals who will perform the service and/or activity. A description of the individuals or firms experience with similar services for agencies such as public housing authorities or similar municipal agencies. A list of references and record of success. Include Contact name, phone number, emails and address. A description of the individual or firms ability to provide the service or complete the activity in a timely fashion or as required by the FWHA. Statement of Compliance with all applicable state, federal and local ordinances relating to professional insurance brokers.
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8. The FWHA reserves the right to conduct an interview or interviews with the prospective professional to discuss the scope of the project as outlined in their proposal. 9. All awards or waivers will be by resolution acted on by the FWHA Board of Commissioners at its October 2008 meeting. 10. All awards are subject to availability of funds. 11. This policy will include, but not be limited to, all of the above listed requirements.
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RFP Issue Where to get RFP
August 22, 2008
FWHA Finance Department 2025 S. Anthony Blvd, 2nd Floor Fort Wayne, Indiana 46803 Carolyn Nichter, Finance Director cnichter@fwha.org OR FWHA website at www.fwha.org
RFP Submission Deadline Committee Review Board of Commissioners Review/Approval Award
September 16, 2008 September 23, 2008 October 14, 2008 October 15, 2008
ALL SUBMISSIONS MUST BE IN A SEALED ENVELOPE, CLEARLY MARKED “INSURANCE BROKER SERVICES”
The FWHA will award a contract pursuant to FWHA Procurement Policy. The FWHA reserves the right, however, to reject any and all proposals as deemed in the best interest of the FWHA. All Brokers submitting proposals shall be currently licensed and authorized by the State of Indiana, Department of Insurance, to do business in the State of Indiana and must have a favorable record. The FWHA will exercise its right to review, revise, and approve written and other communication materials. Upon any award, a contract will be issued for a three year conditional term, subject to annual review and renewal as elected by the FWHA. The length of term of the initial contract shall commence upon award of the contract and shall expire September 30, 2009. The FWHA reserves the right to extend the contract through September 30, 2011. The successful broker shall comply with all local, state and federal directives, orders, regulations, or laws as applicable to this agreement. Submission of Proposal One original and 3 copies of the proposal must be submitted by the prevailing time listed above. Late proposals will not be accepted. The FWHA will not accept responsibility for late proposals that may be improperly routed in the mail. Proposals must be written in concise and clear language. The Broker acknowledges and affirms, by submission of a proposal that he/she agrees to be bound by the terms and conditions of the request for proposal. Any departures, exceptions, deviations, or inclusions to the terms of this specification will not be considered. Proposals shall
remain firm for a period of sixty (60) days after the date specified for the receipt of proposals. For coverages written, timeliness is essential and the selected broker shall agree to place coverage and issue binders prior to each policy’s respective expiration. Policies and/or endorsements are expected to be provided as soon as practicable after inception or renewal of the respective contract. The selected broker will negotiate on the FWHA’s behalf for the renewal of policies/endorsements. The Broker will maintain open communication with the FWHA about trends of the market and impacts anticipated on the financial budget of the FWHA as requested or as dictated by critical market activity. The broker shall agree to provide full and free access to records maintained with respect to the insured, as well as any other books records, and information reasonably related to the scope of services provided by the broker to the FWHA. The broker will provide to the FWHA, on an annual basis, a schedule detailing the coverages placed through the firm. Allocation of any premium will be provided to the FWHA as required. Additional schedules will be provided to the FWHA as required. The following documents are required for submission with the proposal: Statement of Ownership Non-collusion Affidavit Affirmative Action Statement Broker Response Form A list of carriers represented. Successful broker shall provide within one week of award, evidence of affirmative action compliance by 1) copy of letter of state insurance license, 2) evidence of insurance coverage acceptable to FWHA. Evaluation of and Award of Proposals The FWHA will revi ew and ev aluat e propos als submitted for recommendation of a broker to be considered by the FWHA Board of Commissioners. Proposals will be evaluated primarily on the basis of responses to questions 1 through 27 in the “Broker Response Format” Section and the general criteria outlined in the “Evaluation, Review and Selection Process” Section. The FWHA, or selected representatives of the FWHA, may elect to conduct interviews with finalists selected for purpose of reviewing the broker’s proposal, credentials, performances, and references. Interviews may be scheduled for evening sessions. Interviews will be conducted such that the Broker will be provided with a 15 minute period to provide introductions and offer highlights of elements of their firm or services which will be followed by a period of no less than 15 minutes during which the FWHA may direct questions to the Broker. If proposals require additional clarification or supplementary information for evaluation, brokers must submit requested information in a timely manner for the interview process. Proposals should be submitted to include the
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most complete and favorable terms from an underwriting standpoint which are capable of being recommended to the FWHA for interview. The FWHA reserves the right to make on-sight visitations to assess the capabilities of Brokers and to contact references provided in the proposal.
Scope of Services The scope of services to be included in the proposals must include the following: 1. Negotiating annual renewal of coverages from carriers for Health, Major Medical, Prescription Drug, Dental, Life, Long and Short Term Disability, and Vision coverage. Seek competitive quotes from other health benefit carriers and provide advice and recommendations for consideration. Preparation of all necessary bid specifications, evaluation of bids, coverage and premium analysis, and recommendation of carrier.
2. Review policies and endorsements for accuracy and conformance with negotiated coverages. Insure the timely issuance of policies and endorsements to the FWHA. 3. Analyze and review all health benefit carrier proposed settlements, claims history, group utilization, reserves, claims processing, and other plan costs and expenses to provide information and recommendations to the FWHA. 4. Assisting the FWHA employees in setting claims or grievances relating to insurance benefits issues. Assist the FWHA with health benefit plan administration, wellness and preventive insurance management and provide advice and guidance on new laws, regulations and procedures in the area of health benefit administration. 5. Assisting the FWHA’s personnel in processing of enrollments, terminations, changes, COBRA notification processes and applications, and other forms for administration and claims. 6. Providing the FWHA administration with reasonable preliminary renewal figures during the budget process. 7. Attend on request FWHA meetings, Finance and Insurance Committee meetings, budget meetings, and other negotiation meetings, whenever necessary. 8. Assist the FWHA’s Human Resources Officer with required employee presentations. 9. The Respondents ultimately selected through this RFP will be responsible for assisting FWHA with all aspects of its health insurance consulting/brokerage services and for the management of all aspects of the FWHA’s health and welfare insurance programs; this includes but not limited to Medical, Prescription, Dental, Life, Long and Short Term Disability, and Vision programs, including but not limited to: A. Identifying issues and exposures and negotiating on FWHA’s behalf with insurance carriers; keeping 7
FWHA informed of significant developments affecting its insurance coverage. The Respondent selected as FWHA’s broker of record (“Broker”) shall be authorized to represent and assist FWHA in discussions and transactions with all insurance carriers, provided that the Broker shall not place any insurance on behalf of FWHA unless so authorized in writing by FWHA. B. Following up with insurance carriers for timely issuance of policies and endorsements placing coverage delivery binders to FWHA prior to the expiration of the current policies. Reviewing policies and endorsements for accuracy and conformity to specifications and negotiated coverages. Providing coverage summaries to FWHA for all new coverages and updates on changes to existing coverages. Forwarding FWHA’s claims to the insurance carrier. The Broker shall monitor the claim status and assist FWHA in obtaining timely resolution of the submitted claim. Reviewing all correspondence referred by FWHA, and preparation of correspondence on behalf of FWHA, if requested. The Broker will be required to perform the following services: o Assistance with the development of and planning of long range health insurance strategies o Recommendations and negotiations to procure health insurance coverages, prescription coverage, including assisting the Finance Department in the preparation of Requests for Proposals o Assist in managing of all aspects of the FWHA’s welfare insurance program o Anal ysis of proposals in connection with health insurance procurement, including, but not limited to, recommending selection criteria, marketplaces and assisting in an advisory capacity the evaluation of same. o Participation in on-going meetings with FWHA personnel regarding insurance strategies and day to day operations of the FWHA’s health insurance needs o Assistance in the development of alternative strategies to reduce risk to assets and resources; consultation as to the probable impact of strategies elected by the FWHA.
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Assist the FWHA as a resource during employee education sessions Facilitate employee group sessions at open enrollments and/or when changes are introduced Create employee communication pieces/surveys as necessary/requested by the FWHA. Monitor/ensure carrier compliance with plans, commitments, and facilitate carrier relationship with FWHA Market programs periodically
All annual rate renewal reports shall include the following: Executive Summary – include key findings and recommendations; (recommendations can include, in addition to rate actions, the removal plans or corrective actions, the issuance of a request for proposal, new benefit recommendations or deletions of old benefits, revised programs, etc), and historical highlights (overall historical trends in membership, reserves, trends, etc.) Enrollment history and claims trends Analysis of Health Care trends: methodology for prediction of trend Financial Projections – determination of past period to project need for renewal Development of Rate Renewal – as part of the analysis, for medical, prescription and dental plans analysis will include identification of plan costs and utilization trends and how those trends parallel or vary from known general experience for other carriers Statewide. Presentation of Premium Rates FWHA claims experience will be provided to the Contractor on a quarterly basis by the Plan Administrator for the Medical and Prescription Drug Plan. Claims experience provided shall be analyzed upon receipt by the Contractor and any concerns that the Contractor may have relating thereto shall be immediately reported to the Executive Director. During the spring of each year, the administrator for each plan will provide the Contractor with a written projection of costs and proposed rate renewal for the following calendar year. For each Plan noted, the Contractor will independently develop rate renewal projections based upon the Contractor’s review of the FWHA’s experience, cost and utilization trends.
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Assistance in the Preparation of Written Materials o Upon the written request of the FWHA, the Broker shall provide expert assistance in the writing of technical brochures or technical sections of the FWHA handbooks, language for rule revisions in the FWHA Personnel Policy and other written materials.
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Design of New Programs or Benefits o Upon the written request of the FWHA, the Broker shall provide expert assistance, underwriting/actuarial services, advice in the design of new benefits, and will independently recommend new programs. Evaluation of Proposed or Enacted Legislation o The Broker is expected to immediately advise the FWHA of pending or enacted Federal and State legislation affecting the FWHA. Upon the written request of the FWHA, the Broker shall advise of the financial/administrative impact of State or Federal legislation on the FWHA and assist in the implementation of changes made necessary by such legislation. Analysis of Covered Service Area Expansion o For the purposes of providing an adequate choice of plans for the FWHA’s employees, the Broker, upon written request of the FWHA, shall analyze service areas of current plans and provide recommendations regarding design and expansion of coverage plans.
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Broker Response Format The following items are to be clearly addressed in the proposal responses for broker services for health insurance. If an item is not applicable to your proposals, clearly indicate “not applicable” for the item and the reason it is not applicable. 1. Name of firm 2. Location of the office that would service our account. 3. A narrative statement (no more than 1 page) of the Respondent’s understanding of the FWHA’s needs and goals. 4. How many years has the firm been dealing in the Indiana public employer arena? 5. What percentage of your firm’s current clients are public employers? 6. Describe the proposed management of the account as detailed as possible, (use bullet listing) including the identification of the account executive directly responsible for the overall management of the account. The industry-specific experience and functions of the account executive are to be clearly outlined along with the roles and identification of support personnel for the account. 7. Identify the other employees who will be assigned to service the account of the FWHA. Highlight their experience in the service area they will provide, along with resumes. 8. Outline the program the account team will implement in working with FWHA administration and staff to provide transition in new and/or existing programs, to communicate the scope of benefits program with employees. Outline the administrative support and organization included by the broker services team for carrier changes. Outline how a change of carries, if warranted, would be disseminated to employees, including the means to convey the implication of the changes in their personal benefits. 9. Describe your experience and relationship with the FWHA’s existing health (PHP), dental and prescription program carriers. 10. Provide three (3) current Public Employer client references in INDIANA with covered employees in the range of 150-300 employees. List the lines of coverage you service for each reference. At least one of the representations will have resulted in a program change in the health insurance carriers within a municipal type organization.
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11. Provide a list of three current or former private clients in Northeast Indiana with a contact name, title, address, email and telephone number. 12. Provide a sample of the information which would be provided to the FWHA detailing the outcome of your renewal negotiation efforts, ongoing service efforts and analysis of competitive markets. 13. Specify in detail the claims administration services and covered employee support that will be provided to the FWHA of, such as hours of availability, extent of clinical and insurance expertise and number of employees rendering this service. 14. How will the firm routinely serve the FWHA and its administration in the annual and intermittent enrollment processes, written communications, employee meetings, employee information updates, employer responsibilities updates, benefits usages and limitations, etc. 15. Does your firm provide a toll free number and/or internet access and support? What access will be made available to administrators and to employees? Outline the response process and timeframe for addressing needs and/or concerns of the FWHA’s administration and/or the FWHA’s employees. 16. Describe the firms’ methods for development of specifications to obtain competitive health insurance policy quotes and the means of communicating with the FWHA administration the results. Outline the calendar for the process to be followed. 17. Describe the support and resource services that will be available to the FWHA employee committee. Kindly include a sample of cost containment information which you have used previously. 18. Describe how your firm will review plan documents for compliance with applicable laws and contracted agreements. Describe how the firm will support the FWHA personnel in comprehending and implementing compliance and processes for HIPAA. 19. Describe your firm’s commitment to the responsibility for representing accurately the scope of coverages being made available by the carriers recommended and selected in the quoting process. 20. Does your firm have proprietary access or relationships that could conceivably compromise your ability to objectively serve the FWHA’s needs?
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21. Please cite which, if any, public employer groups in INDIANA you have willingly moved into a program, like the Indiana State Health Benefits Plan, that pays no commission simply because it represented the best option for the client. 22. Respondents shall provide the following: o List all immediate relatives of Principal(s) of Respondents who are FWHA employees or commissioners of the FWHA. For purposes of the above, immediate relative means a spouse, parent, stepparent, brother, sister, child, stepchild, direct-line aunt or uncle, grandparent, grandchild, and in-laws by reason of relation. List any company or any employee(s) of Respondent’s company barred from working with any major insurance carriers within the State of Indiana. Qualifications of all significant subcontractors used in connection with the servicing of this account.
Bid Proposal Fees
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23. It is anticipated the broker will be paid for all services based on a fixed annual fee (Option 1). However, the proposal should include a fee schedule based on both a flat fee and a commission basis (Option 2).
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Specify broker’s fixed annual fee. This may be a flat fee or a combination of a retainer and/or specific services billed through hourly rates. The FWHA does not provide payment for or reimbursement for travel time and expenses. • Under Option 1, the broker must also disclose all anticipated (low and high range) commissions, contingencies, overrides or other added compensation as a result of either having obtaining coverage with a specific carrier or general agent on behalf of the FWHA. The FWHA shall determine the disposition of said commission or compensation.
Option 2: The FWHA has the option to compensate broker on a commission basis. If so, explain how, in spite of having financial incentives to place coverage through certain carriers, you would be capable of objectively serving the FWHA’s needs.
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24. Identify the fees, if any, which would be assessed to administer third party administrative services for COBRA, HRA, FSP, Dependent Care, and Retiree Billing. Include an outline of your firm’s role in the administration of COBRA notifications, enrollments, and billing processes. 25. Outline the resources that your firm includes to provide “risk management” within the delivery of the FWHA’s health insurance program. Cite the specific services that would be included and the fee, if any, associated with their implementation. For example, the FWHA currently receives and hopes to continue to offer the following to its employees.
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Approximately 16 hours per month of on-site wellness coaching that includes seminars, one-on-one wellness coaching, follow-up research and materials, blood pressure and other wellness indicator screenings and record keeping. Health advocate services to intercede on employees behalf when warranted by unique and unexpected circumstances.
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EVALUATION, REVIEW AND SELECTION PROCESS 1. RFP responses shall remain open for a period of sixty (60) calendar days from the stated submittal date. The FWHA will either award the contract within the applicable time period or reject all proposals. 2. The FWHA may extend the decision to award or reject all proposals beyond the sixty (60) calendar days when the proposals of an y respondents who consent thereto may, at the request of the FWHA, be held for consideration for such longer period as may be agreed. 3. The FWHA reserves the right to reject any or all proposals, or to reject any proposal if the evidence submitted by, or investigation of such respondent fails to satisfy the FWHA that such respondent is properly qualified to carry out the obligations of the RFQ and to complete the work contemplated therein. The FWHA reserves the right to waive any minor informality in the RFP. 4. An evaluation team will review all proposals to determine if they satisfy the Proposal Requirements, determine if a proposal should be rejected and evaluate the proposals based upon the Evaluation Criteria. The highest-ranking respondent will then be recommended to the FWHA Board of Commissioners for award of contract. 5. The criteria considered in the evaluation of each proposal is as follows: A. Proposal conforms to format provided. B. Resume and qualifications of broker. C. Qualifications of team. D. References and record of success in similar sized municipal-type organizations. E. Ability to respond to the Scope of Services previously outlined. F. Competitiveness of Fee Proposal. 6. Non-compliance with significant instructions will be grounds for disqualification of proposals.
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