HUMAN RESOURCES DEPARTMENT City of Tulsa Purchasing

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					                              RFP 09-902-Addendum #2
                           EMPLOYEE BENEFITS PROGRAMS
                                Issued: March 3, 2010




                                       RFP 09-902
                                Question/Answer Document

1) Could you confirm the total headcount that the EAP services would cover?
   Approximately 5,200
2) How many ees will be covered for EAP services (we noticed that fire
   and police ees are excluded from current services)?
   Approximately 5,200, sworn Fire and Police will not be eligible
3) Do you have questions that you would like us to answer or just prepare
   an overview of our program with rates?
   The Questionnaire was released with the Q&A in this addendum
4) How many years are you requesting for the rate guarantee?
   2 and 3 year rate guarantees please; in addition you may submit additional years with
   “not to increase” percentages if you choose
5) We would like to submit a proposal only for the Employee Assistance Program portion of the
   RFP. Is this permissible?
   Yes
6) How many copies of the proposal are being requested?
   Two
7) How many employees are eligible to access the EAP program? Are all 5,241 employees
   eligible or just those employees enrolled in the health plan? What number should pricing be
   based on?
   Yes, all 5241 are eligible; pricing should be based on everyone
8) Please disclose the rate history for EAP services from 1998 to 2010.
   1997/1998 (No Increase)
   Uniform $2.00 per employee/yr, Non-Uniform $10.89 per employee/yr
   1998/1999
   Uniform $2.10 per employee/yr, Non-Uniform $11.50 per employee/yr
   1999/2000
   Uniform $2.21 per employee/yr, Non-Uniform $12.08 per employee/yr
   2000/2001 (reset to 1997/1998 rates)
   Uniform $2.00 per employee/yr, Non-Uniform $10.89 per employee/yr
   2001/2002
   Uniform $2.10 per employee/yr, Non-Uniform $11.50 per employee/yr
   2002/2003
   Uniform $2.21 per employee/yr, Non-Uniform $12.08 per employee/yr
   2003/2004

   Uniform $2.21 per employee/yr, Non-Uniform $9.60 per employee/yr

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                              RFP 09-902 Addendum #2
                           EMPLOYEE BENEFITS PROGRAMS
                                Issued: March 3, 2010
   2004/2005
   Uniform $2.32 per employee/yr, Non-Uniform $10.08 per employee/yr
   2005/2006
   Uniform $2.44 per employee/yr, Non-Uniform $10.58 per employee/yr
   2006/2007
   Uniform $2.68 per employee/yr, Non-Uniform $10.56 per employee/yr
   2007/2008
   Uniform $2.95 per employee/yr, Non-Uniform $11.62 per employee/yr
   2008/2009
   Uniform $3.35 per employee/yr, Non-Uniform $12.78 per employee/yr
   2009/2010
   Uniform $3.58 per employee/yr, Non-Uniform $14.06 per employee/yr
9) Please provide the following information regarding the City's current EAP scope of services:
   A) # of On-site Training hours included in contract
   The current contract provides two-hour training for all management staff and a one-hour
   training of non-management employee per quarter, However, CCEAP has maintained
   that trainings and orientations are performed upon request or at the need of the City of
   Tulsa which has gone beyond the contact.
   B) Types of Training included in contract
   There are several standard trainings listed below, however CCEAP has developed
   custom trainings based on requests or need by the City of Tulsa.

Classes for Supervisors and Managers:

DOT Supervisory Training (FTA, FMCSA, FAA, PHMSA, FRA) (3 Hours):
This training is designed to meet the DOT two-year training requirements for supervisors and is led
by a Department of Transportation Substance Abuse Professional. Class material includes
recognizing drug related behaviors and the effects of drugs on employees, defines “Reasonable
Suspicion,” and outlines reasons for referrals of employees.
Drug-Free Workplace Training for Supervisors (2.5 Hours):
This class specifically designed for supervisors and managers assists with recognizing drug
related behaviors, effects of drugs on employees, defines “Reasonable Suspicion,” and reasons
for referrals of employees. This class may be combined with the DOT Supervisory Training for
companies with both DOT and non-DOT employees.
Making Supervisory Referrals (Supervisors – 1.5 Hours):
This workshop presents the steps and sequence that make supervisory referrals most effective
and that best protect the company from litigation or risk of violence.
Conflict Resolution (Supervisors – 2 Hours):
This training is for supervisors, managers and HR staff. The training will address identification of
troubled employees; how to avoid “traps” when attempting to help, and the conflict resolution
process.




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                               RFP 09-902 Addendum #2
                            EMPLOYEE BENEFITS PROGRAMS
                                 Issued: March 3, 2010

Managing Anger (Supervisors – 1 to 1.5 Hours):
This workshop identifies inefficient styles of handling anger and provides suggestions on
managing anger effectively.

Violence in the Workplace (Supervisors – 1 Hour):
This training focuses on violence prevention, early warning signs and what to do when supervision
has identified a potential for violence. Early intervention proves to increase morale, reduces
turnovers and provides for a safer work environment.
Depression in the Workplace (Supervisors – 1 Hour):
This is a brief overview of types and significance of different kinds of depression and predictors of
whether the depression may be chronic. Material includes impact in the workplace & what
supervisors are – and are not – to do.

Classes for General Employees:

Understanding and Treating Depression (1 to 1.5 Hours):
This training is a brief overview of different types of depression and their significance. Class
material assists in identifying the factors affecting whether a depression will be mild or severe, one
time or “forever.” Included are tips for effective and ineffective medication therapy, self-help and
help of others.
Holiday Blues (1 to 1.5 Hours):
This class helps in identifying the difference between “the blues” and clinical depression. Class
material includes tips on behaviors that can decrease stress and increase enjoyment during the
holidays.
Drug-Free Workplace for General Employees (2 Hours):
This class presents information about recognizing drug-related behaviors and descriptions of most
commonly abused substances and their effects on employees in the workplace. Class material
includes a review of facts versus myths and an interactive quiz to emphasize key information.
Sexual Harassment (2 Hours):
This training is open to supervisors, managers, HR professionals and general employees. This
course covers: definition of sexual harassment, different types of sexual harassment recognized
by the EEOC, negative effects it can have on work environment, what can be done to prevent
sexual harassment from occurring, and what steps to take once it has been reported.
Stress Management (1.5 Hours):
This workshop looks at how stress energizes and strengthens, as well as weakens. Identify
primary sources of positive and negative stress (eustress and distress), warning signs of excessive
stress, and additional ways to reduce and/or counter stressors.
Time Management (1.5 Hours):
This workshop will assist with an understanding of time management and how to begin a personal
time management assessment. Material includes time management tips and resources available
for assistance. Learn how to avoid time management pitfalls.




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                              RFP 09-902 Addendum #2
                           EMPLOYEE BENEFITS PROGRAMS
                                Issued: March 3, 2010

Aging in the Workplace (1 Hour):
Aging in the workforce has become a critical issue as people are staying active and working longer
than ever before. The workforce is changing and companies must adapt to respond. This training
is for those who are confronted with the various challenges of a workplace incorporating “Baby
Boomers,” “Generation X-ers” and “Generation Y-ers.”

    C) # of DOT Substance Abuse Evaluations included in contract
    CCEAP provides the two SAPs as required by the Department of Transportation. This
    service is provided at no additional cost to the City of Tulsa and has served over 38 DOT
    SAP referrals. The service is based on the need of the City of Tulsa as well as the
    significantly higher numbers of non-DOT positives for Alcohol/Drug and prohibited
    conduct (tampering and adulteration).
    D) # of hours for Critical Incident Stress Debriefings (CISDs) included in contract
    CCEAP has provided this service and no additional coast as well as upon request or
    need of the City of Tulsa. All CCEAP staff are trained in CISD and CISM procedures
    E) # of Fitness for Duty Evaluations included in contract
    These are conducted by the City of Tulsa Medical Director.
    F) # of hours included for participation at health and wellness or benefits fairs per year
    These services are currently being provided by the request of the City of Tulsa at no
    additional cost. All vendor partners are required to attend the Annual Health Fair
10) Please provide the City's EAP utilization rates for 2008 and 2009 and the number of face-to-
    face visits utilized in each year.
    See attached EAP Utilization Reports
11) Please provide copies of the City's 2008 and 2009 EAP utilization reports.
    See attached EAP Utilization Reports
12) What types of promotional materials are received, in what form (hard copy, electronic), and
    what amount of each is included within the EAP contract?
    Brochures 5,000 base then as needed (hard copy)
    EAP Wallet/purse cards 5,000 base then as needed (hard copy)
    EAP Posters for all sites as needed (hard copy)
    Tear sheet notes pads with EAP information for all sites as needed (hard copy)
    Kopy Kits Flyers (work/life issues) as needed (hard copy)
    Department of Transportation
    Supervisor packets as needed (hard copy)
    General Employee packets as needed (hard copy)
    CISD Packet as needed (hard copy)
    Focus Trainings (Time Management, Harassment, EAP Supervisory Referrals, etc as
    requested (hard copy & Electronic)
    Drug Free Work Place Packet & EAP Orientation (New Hires) as needed (hard copy)
    Health Fairs
    Brochures as needed (hard copy)
    EAP Wallet/purse cards as needed (hard copy)

   Kopy Kits Flyers (work/life issues) as needed (hard copy)


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                               RFP 09-902 Addendum #2
                            EMPLOYEE BENEFITS PROGRAMS
                                 Issued: March 3, 2010
    Pens
13) How many health fairs are held each year? How many hours would the EAP vendor be
    expected to attend during each fair?
    There is one Annual Health Fair. It is typically held for 2 days in May before the plan year
    begins- hours expected should be approximately 15-20 hours. All City vendor partners
    are required to attend.
14) What are the major issues currently facing the City and its employees?
    The City is experiencing layoffs and a substantial reduction in budget. They are also in
    their first year with a new mayor, so in some circumstances reorganization is taking
    place in departments.
15) Employee census with gender and date of birth along with job title an annual salary. We do not
    need names
    Please refer to the Exhibits spreadsheet, Tab 1
16) Participation on Voluntary Life and three year claims history on the life benefit with Minnesota
    Life
    Please refer to the Exhibits spreadsheet, Tabs 1 and 11 , password for Life experience
    files is “C1Tyt1$a”
17) Participation and Claims history to include incurred and paid claims on the Aetna Disability plan
    for three years
    Please refer to the Exhibits spreadsheet, Tabs 13 and 22
18) Dental and Vision participation and three year claims history for Guardian and VSP
    Please refer to the Exhibits spreadsheet, Tabs 5, 7, 18, and 20 and the attached Dental
    Utilization Report.
19) Current per employee per month cost on the FSA plan
    $2.29 is a bundled rate for FSA and COBRA, 1.76 FSA and 0.53 COBRA
20) Current per employee per month and services offered on the COBRA plan
    $0.53 PEPM for COBRA services below:
    •   Qualified Event Processing
    •   COBRA Notifications
    •   FMLA
    •   List Bill for Employer Portion
    •   CEM Services (Carrier Eligibility & Billing Management)
    •   Online Services (Both HR & COBRA Participant)
    •   Online Reporting (Both HR & COBRA Participant)
    •   Complete Customer Service
    •   Renewal (all standard services)
    Optional Services include:
    •   Per Qualifying Event Fee Circuit Breaker – If the number of Qualifying Event Notices
        exceeds 1,000 in any one year, a rate of $20.00 per notice will apply to all Qualifying Events
        in that year exceeding 1,000 $ 20.00
    •   Scrub/formatting charge (for files not meeting our file specification); and customized, ad-hoc
        reports or audits, minimum one hour upon advanced approval by the City of Tulsa.




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                               RFP 09-902 Addendum #2
                            EMPLOYEE BENEFITS PROGRAMS
                                 Issued: March 3, 2010

   •    COBRA Administrator completing request, per hour: $75
   •    Management and/or IT completing request per hour: $150
    •   Customization of Materials (charged on the basis of time and materials, i.e. printing costs)
        Actual Cost
    •   Rates may be reasonably adjusted to compensate for federal postal rate increases or in the
        event that either City of Tulsa or legal mandates require changes to the processes or
        volumes upon which this proposal was based. As Applicable
    •   Overnight / Bulk Shipments – UPS Charge passed through to client TBD.
21) We usually send our generic RFP response with pricing and documentation on who we are and
    what our service is. If we send a generic response will we be considered? If we are chosen as
    a finalist, we will respond to all questions and attend interviews as scheduled.
    Everyone who provides a quote matching current plan design along with any requested
    plan designs using the Exhibits template provided and answers all questions listed on
    their benefit tabs on the Questionnaire will be considered. You may not be considered if
    you do not follow this format.
22) In order to provide you with the best pricing for COBRA, we need to know the current turnover
    rate for the City.
    8.9%
23) In order to provide you with the best pricing for FSA, we would like information on the number
    of current participants.
    There are 1103 enrolled in Healthcare and 68 in Dependent Care
24) Can I get a copy of the benefits so that we can provide a similar Benefit Schedule?
    Benefits are provided in the Exhibits spreadsheet, Tabs 2-26
25) Is a census of the enrolled employees available? How many employees are eligible for the
    Voluntary Plan?
    Yes, please refer to the Exhibits spreadsheet, Tab 1. Non-eligible members have an
    “N/A” in the election columns
26) Are the current rates and claim experience from the current carrier available?
    Yes, these are included for most benefits in the Exhibits spreadsheet and/or the
    attachments provided with this addendum
27) The dental claims experience provided within the Request for Proposal reflects enrollment by
    month based on total lives, is it possible to break down the enrollment by month based on
    coverage tier (EE Only, EE + Fam)?
    This group is self-administered. Guardian does not generate bills, so tier breakdowns
    are not available. We only have a total unit count provided in the attached report.
28) The current dental participation assumption is 45.3%, could you please provide the total
    number of eligible employees?
    According to the census provided 4,269 are eligible
29) Could you please confirm that the employer contribution towards the employee only cost is
    100%, and the employer contribution towards the dependent cost is 0%?
    This is correct for dental
30) Are you able to provide a detailed description of covered Classes I, II, III and IV services or a
    copy of the current Summary of Benefits?



                                            Page 6 of 43
                              RFP 09-902 Addendum #2
                           EMPLOYEE BENEFITS PROGRAMS
                                Issued: March 3, 2010

31) How are employees paid – weekly, bi-weekly, semi-weekly – monthly?
    Semi-monthly
32) Do you only enroll once a year or are new employees allowed to enroll during the year after
    their probation period?
    Annually during open enrollment, or 31 days of a Qualifying Event
33) What is the new employees waiting period to be eligible to enroll in benefit plans?
    Waiting period is 30 days from hire, employees may enroll the first of the following
    month for that 30 day waiting period
34) What kind of access would we have to employees for enrolling the products –especially the
Long Term Insurance?
    You would have access to most employees during the City’s Health Fair in May (prior to
    OE); it has very high attendance.
35) Not all job titles are provided on the census. Please include.
    We do not have titles for 170, they are on the City’s benefit plans but not on their payroll.
36) Not all employees are eligible for benefits as indicated on the census however still show
    coverage on some fields
    Different groups are eligible for different benefits, so N/A is shown sometimes
37) Will you be seeking Legal quotes?
    Yes
38) Are there any service, product, or reporting needs that are not currently being met or need
    expansion?
    Not certain which benefit you are referring to, but the City is marketing their entire
    benefit package to ensure they have 1) accurate, complete and transparent reporting, 2)
    exceptional service and 3) efficient administration and 4) professional communications
39) Please provide the complete Guardian booklets
    Attached
40) Any Dental plan changes or changes in employer contribution since July 2007?
    No, please refer to the Exhibits spreadsheet, Tab 5 for rate information
41) Please provide the dental experience (monthly claims, premium, lives) for 1/1/2007 to
    12/31/2007
    See attached Dental Utilization Reports
42) Please explain the reimbursement for Dental out of network claims. Are they paid at a
    particular R&C (ie 90th or 80th percentile) or paid at a Maximum allowable charge (ie the
    network discounted fee)?
    90% UCR, Guardian utilizes “Ingenix” for their R&C data
43) Is the dental renewal available?
    No
44) Please provide the complete Minnesota Life booklet
    Attached, “COT Life Certificate”
45) Any there been any Life plan changes since July 2006?
    12/1/2007 - The police department broke off from the City's life plan and
    now have their own plan, as a result the basic rate increased from .14 to




                                           Page 7 of 43
                               RFP 09-902 Addendum #2
                            EMPLOYEE BENEFITS PROGRAMS
                                 Issued: March 3, 2010

    .147 effective 7/1/2008 as the volume on the City plan changed by more than 25% (it was
    a 31% change in volume)
    4/2008 - Implemented the Minnesota Life beneficiary management system to manage the
    life insurance beneficiaries for the City of Tulsa.
46) Have the current life rates remained the same since July 2006? If not, please provide.
    No, 2009-1.78/1000, 2008- .147/1000, 2007 and 2006-.140/1000-
47) All classes eligible for life insurance?
    Yes, (but as previously indicated NOT sworn police and fire)
48) Please provide an individual life claims listing including any waiver claims
    Attached, password for Life experience files is “C1Tyt1$a”
49) Please provide Life premium, lives, volume by month from 7/1/2006
    Attached, password for Life experience files is “C1Tyt1$a”
50) Please provide Optional Life and Dependent Life Census with election amounts
    Attached, report “COT Life Elections”
51) Please provide the complete Aetna LTD booklet
    Attached, “LTD Benefit Summary”
52) What are the employer/employee contributions for LTD?
    LTD is 100% paid by the employer
53) Please include the individual total paid or monthly LTD benefit on the detailed claim listing (net
    and gross)
    Attached
54) The LTD paid claims by date incurred information does not indicate for the open vs closed
    claims - please include the status of these claims.
    Attached
55) Please provide LTD paid premium and LTD rate history for the time periods that the claims
    information was provided
    Attached
56) Provide the LTD covered lives by period of the experience provided.
    Attached
57) Can you provide the most recent Aetna LTD paid and incurred analysis?
    Attached
58) Is the LTD participant group part of the OPERS or some other Public Retirement System?
    The LTD group is part of our (City of Tulsa) retirement system - Municipal Employees
    Retirement Plan (MERP).
59) Do the LTD participants participate/contribute to Social Security
    If you are referring to Social Security as FICA withholdings, yes.
60) What is the current STD program? Do employees have a sick bank? If so, what is the average
    number of days or hours provided to each employee and do you have the Sick Bank available?
    Would you ask for the employees to first use the sick bank before the STD benefit would
    begin?




                                             Page 8 of 43
                             RFP 09-902 Addendum #2
                          EMPLOYEE BENEFITS PROGRAMS
                               Issued: March 3, 2010

    The City does not currently have an STD program. Their sick pay is:
    Labor Trades employees receive 5 days of short term and 10 days of long term every
    year, with a maximum 120 days
    Exempt, Administrative and Technical employees accrue 1 day a month with a
    maximum of 150 days
    The City has not decided how they will administer sick and STD days yet. Please quote
    both ways if needed.
61) Please provide the full plan contracts / booklets for the Life and LTD
    programs so we can review all provisions for deviations.
    Life Certificate and LTD Summary are attached
62) Have there been any plan changes in the experience periods?
    See question #45
63) Have there been any rate changes in the Life and LTD plans in the
    experience periods shown? If yes, what is the history?
    Yes for Life- See question #46
64) What is the number of covered lives per year by line of coverage?
    Refer to the Exhibits spreadsheet, Rate tabs per line of coverage, See attached invoice
    and files, password for Life experience files is “C1Tyt1$a”
65) Please provide individual paid claims detail separated by basic and
    supplemental life. This will help the underwriting effort.
    See attached, password for Life experience files is “C1Tyt1$a”
66) We need to know the face amount of any premium waiver claims.
    See attached, password for Life experience files is “C1Tyt1$a”
67) Please provide the carrier LTD "incurral" exhibit to include paid
    premium, paid claims and reserves. This is a standard carrier report.
    See attached
68) How many proposals are needed?
    Two
69) Census - can we get the actual elected supplemental life volumes? The
    census just has Yes or No indicated. This would allow for more accurate
    underwriting.
    Attached, report “COT Life Elections”. City is self-bill, most recent Invoice with total
    volume has been included
70) Census - there are some employees on the census that are not retirees,
     fire or police and do not appear to be in a waiting period but they do
     not have any Life or LTD coverage indicated. Please advise if they
     should be covered.
    MTTA employees do not have ltd and life through the city. There are non-sworn
    employees in the police and fire departments that have benefits (i.e. admin staff)
71) In regard to the RFP's request for an STD quote, please describe Tulsa's
     current sick leave plan including benefit levels and provisions.
         Labor Trades - 5 short-term, and 10 long-term/year, maximum 120
         Exempt- accrue 1 day month, to a maximum of 150



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                               RFP 09-902 Addendum #2
                            EMPLOYEE BENEFITS PROGRAMS
                                 Issued: March 3, 2010

        Admin/Technical-accrue 1 day month, to a maximum of 150
72) Is there a formal questionnaire or would you like us to fill in the areas where the RFP describes
    the current carrier?
    The Questionnaire was released with the Q&A in this addendum, it is in the RFP
    Attachment spreadsheet
73) Would you like to look at a DHMO option for the Dental?
    Yes, please submit that option in addition to matching current
74) We intend to bid Voluntary Benefits for Tulsa City Employees covering Cancer and Group
    Term Life. Since these are voluntary benefits provided at no cost to the City, what is the best
    format to make our proposal?
    The City is not accepting proposals for these benefits at this time
75) Do you currently offer any supplemental products to your employees and if so which
    companies are involved and what types of policies?
    None other than what was provided in the RFP Exhibits
76) Please provide an additional 3 years of Life experience (premium and claims) prior to July
    2007.
    Attached, password for Life experience files is “C1Tyt1$a”
77) Please provide a rate history with any associated Life plan changes as well as a history of
    covered lives.
    Attached, password for Life experience files is “C1Tyt1$a”
    see also questions #45 and #46
78) Please provide a list of approved waiver of Life premium claims.
    Attached, password for Life experience files is “C1Tyt1$a”
79) Please provide a copy of the Life certificate/policy.
    Life Certificate is attached
80) Please provide a copy of the LTD cert/policy.
    LTD Summary is attached
81) Please provide a rate history with any associated LTD plan changes as well as a lives history.
    Attached
82) Please provide earned LTD premium for the last 3-5 years by month or year as available.
    Attached
83) Please provide total amounts paid and individual LTD net benefit (or gross benefit with offsets)
    by claimant. We have received some information, but it only includes reserves by claimant and
    not enough detail to evaluate the experience.
    Attached
84) Please confirm that police and fire personnel are not eligible for LTD. Please explain the
    employees in these categories on the census who are listed with LTD amounts.
   No, sworn police and fire personnel are not eligible for LTD or any other City benefit.
   There are non-sworn employees in the police and fire departments that have benefits
   (i.e. admin staff) though.
85) Please provide the job titles for those eligible employees for whom the job title column was left
    blank on the LTD census.



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                              RFP 09-902 Addendum #2
                           EMPLOYEE BENEFITS PROGRAMS
                                Issued: March 3, 2010

    We do not have job titles for some employees because they are on a different payroll.
    MTTA employees do not receive LTD through the City plan.
86) Please confirm the administration of the LTD contributions. Is it considered contributory or
    non-contributory from a claims perspective? In other words, is the payment deducted from a
    person's check before or after taxes?
    LTD contributions are post-tax.
87) If the LTD plan is technically non-contributory, please clarify why there are $0 amounts for
    many individuals in the LTD column.
    Some members do not receive an LTD benefit
88) A self-insured option has been requested. Does this apply to LTD as well?
    No
89) Please clarify if the Dental plan is voluntary or employer paid.
    Employer paid for Employee only tier, Voluntary for EE+ Family
90) Can you forward certificates or policies for your life, ad&d, and ltd coverage?
    Yes, see attached Life Certificate and LTD Summary
91) On the Life Insurance can you share your experience back to 7/1/06 when you started
    coverage with Minnesota Life?
    Yes, see attached - password for Life experience files is “C1Tyt1$a”
92) Can they provide a lives history on the life experience?
    See # 90 and #91
93) Have you had any Life plan design changes during the experience period you provided?
   12/1/2007 - The police department broke off from the City's life plan and
   now have their own plan, as a result the basic rate increased from .14 to
   .147 effective 7/1/2008 as the volume on the City plan changed by more than 25% (it was
   a 31% change in volume)
   4/2008 - Implemented the Minnesota Life beneficiary management system to manage the
   life insurance beneficiaries for the City of Tulsa.
94) Any Life Plan rate changes during the experience period?
    See # 93
95) On the Voluntary life, can you provide a census that shows the employee's voluntary life
    election amounts? Or just a bill that gives us the total volume on the voluntary life?
    Yes, see attached “COT Life Elections”, Most recent invoice is attached
96) Can we get an open/closed Life claims listing with gross and net benefits along with total
    amount paid to date per claim?
    Yes, see attached
97) Can Aetna provide a paid LTD premium and paid on incurred claims? Do they have any more
    experience dating as far back as 2003?
     Yes, see attached , we have experience dated back to 2006
98) Can they provide lives history on the LTD experience?
    Yes, see attached
99) Any plan design or rate changes throughout the experience periods?
100) Are detailed SPD's available? Yes, see attached



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                              RFP 09-902 Addendum #2
                           EMPLOYEE BENEFITS PROGRAMS
                                Issued: March 3, 2010

101) There is a tab on the excel worksheet with three short plan summaries. Which plan is in
   force after the move from 3 plan options to 1?
   There is only one plan currently in force (with 3 networks available). Previous plan
   designs are attached
102) Is a more extensive pharmacy report available detailing generic and brand name utilization,
   retail and mail utilization?
   Yes, see attached Pharmacy Utilization Report
103) Will the City be sending a complete file of pharmacy claims?
   Yes, see attached Pharmacy Utilization Report
104) Will the City confirm if both hard copies and an electronic response to the proposal
   response are required?
   Yes, both. The electronic version is required on disc-no email responses
105) Presuming hard copies are required, how many binders would the City of Tulsa like to
   receive?
   Two
106) Please provide both a physical address and e-mail address for the proposal response.
   175 E. 2nd Street, City Clerk's Office, Tulsa, OK 74103. Responses will not be accepted
   by email or fax. Electronic files must be submitted on a CD (All requested tabs within
   the Questionnaire and Exhibits must be provided in the excel format presented through
   the RFP process).
107) Can the signature authority be someone with binding authority?
   Yes
108) Please provide Geo Access criteria.
   Refer to the RFP Attachments/Questionnaire released with this Q&A (in same
   addendum)
109) Will the City provide updated medical, pharmacy and dental claim experience, along
   with large claimant details paid through January? This will allow us to more accurately price
   each product line.
   Yes, see attached Utilization Reports
110) Commissions: If applicable, what level of commissions should be included in each of the
   lines of coverage (medical, dental, life, disability, dental, etc.)?
   Please quote everything NET of commissions
111) Based on the below information, does the City want a COBRA and FSA quote?
   Yes
           1. COBRA Administration
              COBRA is currently administered by Benesyst. Please refer to the attached SPD of
              this RFP for more detail. The City seeks to continue to outsource these services.
           2. FSA Administration
              FSA is currently administered by Benesyst. Please refer to the attached SPD of this
              RFP for more detail. The City seeks to continue to outsource these services.
112) Please define how the medical plan is currently administered, specifically what criteria
   constitutes the different tiers and how they were determined?



                                          Page 12 of 43
                              RFP 09-902 Addendum #2
                           EMPLOYEE BENEFITS PROGRAMS
                                Issued: March 3, 2010
   This is a fully-insured medical plan with one two-tiered contribution structure.
   Employees have the option to visit whatever provider they would like- thus the 3
   different networks and associated benefit levels.
113) Can we get the monthly claims experience and enrollment broken out for the three
   medical plans the group had prior to the move to the standalone PPO?
   Please refer to the RFP Exhibits, Tab 14 (we have combined experience)
114) What is the current pooling point for medical? Has it changed in the last 3 years?
   The pooling level for Plan Year July 1 2009 was $285,000. For prior years, a group the
   size of the City of Tulsa was considered to be 100% experience rated, therefore there
   were no pooling fees charges and they did not apply pooling levels.

115) Are claim dollars over the medical pooling point included in the monthly claim experience?
   Yes
116) Is the medical census a member census? There are over 5,000 lines on the census, yet
   the information shows approximately 2,500 are enrolled. Is this a result of participation at near
   50%, or do blanks in the medical election column represent members?
   The census is for all benefits offered; medical enrollment reflects participation
   2658/5247.
117) Please outline the current disease, case and patient management programs in place today
   with BCBSOK.
   Personal Patient Management
        BlueCare Connection offers guidance at every stage of a member’s health to help them
   make more informed, decisions and take charge of their health. Predictive modeling tools are
   used to identify members who are at risk with a complex or catastrophic health condition.
   Detecting at-risk members’ health care needs early, allows appropriate interventions to be
   initiated improving health outcomes.
   o            Personal Health Manager - online suite of wellness resources helps members
   manage their health and adopt healthier behaviors
   o            Health Risk Assessment – a confidential online tool that evaluates and recognizes
   where a member is doing well and identifies risks and opportunities for improving health
   o            Special Beginnings Maternity Program – voluntary program that includes personal
   telephone contact with expectant mothers offering support and education from prenatal through
   postpartum care including, nutrition, fetal development, risk factor identification, assistance
   managing high-risk conditions and newborn care
   o            Lifestyle Management programs - voluntary programs to assist members on their
   journey to manage weight, tobacco cessation or change their behaviors; offers personal
   coaching, online support tools and resources
   o            24-Hour Nurseline -       registered nurses offer health information by toll-free
   telephone day or night in English or Spanish; an audio library of health topics also is available
   o            Worksite Wellness Resources
        Case Management/Utilization Management – Care/Utilization management and case
   management programs are a collaborative process that engages the member, provider and
   Blue Care Advisor to establish goals, utilize resources, maximize benefits and promote cost-

   effective outcomes, services help members cope with acute care or complex medical situations


                                           Page 13 of 43
                               RFP 09-902 Addendum #2
                            EMPLOYEE BENEFITS PROGRAMS
                                 Issued: March 3, 2010
   and access medical equipment or other health care services they may need
       Blue Care Advisors – Registered nurses and other health care professionals who reach
   out to members experiencing certain health challenges or chronic conditions; working with the
   member’s physician, the advisors provide education and coaching to improve self-care
   techniques, prevent unnecessary emergency room visits and encourage members to obtain
   recommended preventive health screenings to close gaps in care
       Condition Management – Blue Care Advisors provide education and support to higher-risk
   members with specific conditions, helping them enhance their self-management skills and
   change behaviors to improve their overall health and help prevent or delay disease progression
       Programs include;
   o            Maternity
   o            Diabetes
   o            Asthma
   o            Coronary Artery Disease
   o            Congestive Heart Failure
   o            Chronic Obstructive Pulmonary Disease
   o            Gastroesophageal Reflux Disease
   o            Hypertension
   o            Migraines
118) Please outline any additional medical services/buy ups that have been purchased by the
   City of Tulsa, that they would like to continue to offer.
   There were no buy ups purchased by the City within their health plan. BCBSOK and
   Hillcrest have partnered in offering two onsite clinics to the City of Tulsa employees and
   dependents. In addition, they have committed to providing $25,000 in wellness funds.
119) Please provide the medical plan designs for the plans that were in place prior to the move
   to the standalone PPO plan.
   Attached, files are titled “Previous Medical Plan HMO, Premier HMO and POS”
120) Does the City want to look at a medical stop loss quote? If so, what contractual specifics
   should be quoted, levels of Individual Stop Loss and Aggregate?
   Yes, please refer to the RFP Attachment/Questionnaire sent with this addendum
121) The City supports wellness initiatives with funding and resources and assistance from
   BCBSOK. What specifically is being done? What wellness programs are underway?
   Complete Health and Wellness Coordination including but not limited to: Onsite Clinics,
   Weekly Lunch and Learns, Annual Health Fair, Clinical Intervention Programs as
   mentioned above in #117
122) Two on-site clinics are in operation and the City wants to partner with a vendor that can
   support its current initiatives. What currently is provided at these clinics? What are the staffing
   levels, number of staff and hours of operation?
   The Minor Illness Clinic have two staff members, one administrative staff member and
   one nurse practitioner. The Clinic does not treat Workers Comp, Chronic Disease,
   Emergencies, or Injuries. Each clinic is open 6-8 hours a week on different days. Clinic

   1: M/T 8-10, R 3-5 and Clinic 2: M/W/F 9-11




                                            Page 14 of 43
                              RFP 09-902 Addendum #2
                           EMPLOYEE BENEFITS PROGRAMS
                                Issued: March 3, 2010
123) We would like to know how the various In Network benefit levels work. Are they all under
   one plan where the Preferred is are City specific contracted facilities, then Choice are Aetna
   facilities?
   These three networks are all under one plan. The network discounts are solely based
   on contracts between BCBSOK and the provider community. Depending on the level of
   contract the provider is taking, the larger discount.
124) On the Traditional plan, please clarify if the out of network is true out of network.
   BlueOptions is one plan design allowing members the freedom to choose their benefits
   and receive the lowest out of pocket cost. BlueTraditional is a network within the
   BlueOptions plan. Members can take full advantage of our negotiated pricing
   arrangements between providers that are in the network. The In Network providers are
   BluePreferred, BlueChoice, and BlueTraditional. These providers have agreed to hold
   the line of Health cost down and adhere to the allowable charge within their provider
   contracts.
125) Is the Preferred in Network, 20% with copays for City of Tulsa facilities only?
   Providers that contract as BluePreferred providers generally are taking a deeper
   discount than a BlueChoice provider. There is no differential with the City of Tulsa
   facilities vs. BCBSOK facilities. The benefits are determined by a member utilizing the
   network of providers they choose.
126) Is the Choice in Network, 30% with higher copays for Aetna facilities only?
   Providers that contract as BlueChoice providers generally are taking a deeper discount
   than a BlueTraditional provider. There is no differential with the City of Tulsa facilities
   vs. BCBSOK facilities. The benefits are determined by a member utilizing the network of
   providers they choose.
127) Does the Traditional in Network, 50% with even higher copays, cover preventative care at
   100% (Separate plan? Third in Network level?)
   BlueTraditional is the third network level on the plan design (see question 123 for
   clarification of the plan design). For preventative care the member is responsible for a
   $15.00 copayment, and then services are covered at 100% of allowable charge.
128) Is the Out of Network, 50% all benefits, no copays a true out of network level?
   Yes, the 4th level of network is out of network meaning there is no provider contract with
   BCBSOK or through their World Wide Coverage. These services would be subject to the
   limitations of deductible and coinsurance set forth in the contract for out of network and
   providers are able to bill the member over the allowable.
129) Does the clinic relationship provide pharmacy services - in-house pharmacy ?
   No, clinical staff does have the capability to write prescriptions though.
130) Who is the City's current PBM?
   BlueCross BlueShield of Oklahoma
131) If so, please provide Pharmacy plan design - Copays, clinical programs, any special or
   unique arrangements we would be asked to duplicate.
   Refer to the Exhibits spreadsheet, Tab 2. (No special arrangements)

132) Can we get a detailed claim file for the pharmacy benefit?
   Yes, see attached Pharmacy Utilization Report



                                          Page 15 of 43
                              RFP 09-902 Addendum #2
                           EMPLOYEE BENEFITS PROGRAMS
                                Issued: March 3, 2010
133) Can we get pharmacy utilization data (e.g. monthly scripts for the last 24 months, % brand
   vs. generic, % mail order vs. retail, % brand vs. generic within the mail order)?
   Yes, see attached Pharmacy Utilization Report
134) Will the City consider a self insured Dental quote, or is the strategy to remain fully insured?
   The City would consider self funding; you may quote both options
135) Page 10-11 of the RFP indicates the dental plan is "voluntary". However, the dental tab
   #5 of the RFP exhibits indicates that employees pay $0 towards the cost of coverage. Dental
   enrollment of 2,507 employees is consistent with employee-only coverage being non-
   contributory. Is the term 'voluntary' used to describe the enrollment for family coverage?
   Please clarify the term voluntary and the contribution structure.
   Yes, the employee only tier is paid for by the City
   Employee only $0.00;              Employee + Family $54.42
136) Would the City consider a hybrid DHMO/DPPO product (Aetna Freedom-of-Choice plan)?
   Yes, please quote this in addition to matching current
137) What is the Dental Out of Network reimbursement percentile (80th, 90th, etc)? What is the
   source of R&C data? The benefit grid indicates "varies according to area", however, we need
   more specific data.
   90% UCR, Guardian utilizes “Ingenix” for their R&C data
138) Tab 19, Top Dental Provider data has been provided. Is this provided as "information only",
   or is a disruption report being requested and submitted to the responders?
   Yes, a disruption report is being requested; there is more information available in the
   Questionnaire released with this addendum
139) Is the LTD benefit included in the Flex Plan? No
140) Should LTD premium tax be included? If not, please reference applicable statute.
   LTD deductions are taken out after tax
141) Please provide the Life/ADD rate history back to 2005.
   Attached with history back to 2006, password for Life experience files is “C1Tyt1$a”
142) Please provide volume LIFE/ADD history back to 2005.
   Attached with history back to 2006, password for Life experience files is “C1Tyt1$a”
143) Please provide Life/ADD lives history back to 2005.
   Attached with history back to 2006, password for Life experience files is “C1Tyt1$a”
144) Please provide Life/ADD claim detail listing to 2005.
   Attached with history back to 2006, password for Life experience files is “C1Tyt1$a”
145) Please provide Life/ADD Premium Waiver listing to include face amount and date of
   incurral.
   Attached, password for Life experience files is “C1Tyt1$a”
146) Please provide Life/ADD certificate of coverage.
       Attached “COT Life Certificate”
147) Please provide Life/ADD census showing supplemental amount for each enrolled
   employee.
   Attached, report “COT Life Elections”. Most recent invoice with total volume by

   coverage is also included
148) Will you provide utilization data/reports for the EAP Community Care manages for the City?
   Yes, See attached EAP Utilization Reports


                                           Page 16 of 43
                             RFP 09-902 Addendum #2
                          EMPLOYEE BENEFITS PROGRAMS
                               Issued: March 3, 2010
149) How long has the City been with Community Care's EAP?
   In April of 1987 the City of Tulsa entered into a contract with St. John Health System for
   EAP services. In 1991 St. John Health System entered into a partnership with Corp
   Health and continued providing EAP services. In August of 1995 the partnership with
   Corp Health was dissolved and CommunityCare of Oklahoma was formed continuing to
   offer the EAP to the City of Tulsa to the present day. This is a combined total of 23
   years.
150) Please confirm the total headcount (Total number of City of Tulsa employees eligible for
   benefits) that would be covered for the EAP?
   All employees are eligible, which is approximately 5200 employees.
151) Please provide historical data and/or reports on the EAP utilization.
   See attached EAP Utilization Reports as well as question #8




Please visit our website at www.cityoftulsapurchasing.org to
download a copy of the required Questionnaire and other data files.




                                         Page 17 of 43
                        RFP 09-902 Addendum #2
                     EMPLOYEE BENEFITS PROGRAMS
                          Issued: March 3, 2010




February 18, 2010
Addendum #1 is published to change the opening and due date of RFP
responses. All responses are now due to the City Clerk’s office no later than
5:00 pm on Wednesday, March 17, 2010. RFP’s will be opened at 8:30
a.m. on Thursday, March 18, 2010.




                                 Page 18 of 43
           RFP 09-902 Addendum #2
        EMPLOYEE BENEFITS PROGRAMS
             Issued: March 3, 2010




INVITATION FOR SEALED PROPOSAL

                RFP 09-902

               DESCRIPTION:

      EMPLOYEE BENEFITS PROGRAMS

      Department: HUMAN RESOURCES

 NIGP Commodity Code(s): 958-61-00-000-0

     Total pages including this page is 43

 NOTE: FAXING OF PROPOSAL NOT ACCEPTED




                   Page 19 of 43
                             RFP 09-902 Addendum #2
                          EMPLOYEE BENEFITS PROGRAMS
                               Issued: March 3, 2010


                                  TABLE OF CONTENTS



Q&A Document                                                                   2-17


Addendum #1                                                                    18


Table of Contents                                                              19


Invitation for Sealed Proposal                                                 20-22


General Terms and Conditions                                                   23


Interest Affidavit                                                             24


Non-Collusion Affidavit                                                        25


Affidavit of Claimant                                                          26


Employee Benefits Programs                                                     27-29


City of Tulsa’s Flexible Benefits Plan                                         30-43




  Your proposal response should follow the same format listed above plus any additional
                 format requested in the body of the proposal invitation.




                                         Page 20 of 43
                             RFP 09-902-Addendum #2
                          EMPLOYEE BENEFITS PROGRAMS
                               Issued: March 3, 2010


                          INVITATION FOR SEALED PROPOSALS
                                           TO
                                      City of Tulsa
                             175 E. 2nd Street, Suite 865, TULSA, OKLAHOMA 74103

                 Proposal number and date of proposal opening must appear on the lower
                   left outside corner of proposal envelopes and all related containers .



DATE OF OPENING: March 18, 2010                             PROPOSAL NUMBER: RFP 09-902


PROPOSAL MUST BE IN THE CITY CLERK'S OFFICE AT THE ABOVE ADDRESS BY
5:00 P.M. THE DAY PRECEDING THE "DATE OF OPENING" SHOWN ABOVE.

PROPOSALS WILL BE OPENED AT 8:30 A.M. IN THE CITY COUNCIL ROOM ON THE DAY SPECIFIED UNDER
"DATE OF OPENING."




PUBLISHED IN THE TULSA DAILY COMMERCE AND LEGAL NEWS:     __February , 2010_____________

                     MUST BE SIGNED BY AUTHORIZED AGENT TO BE VALID

Bidder’s Exact Legal Name:
(Must be Bidder’s name as reflected on its organizational documents, i.e., not a DBA)

List the U. S. State in which Bidder’s Legal Entity is organized:

Bidder’s Type of Legal Entity: (check one)
      ( ) Sole Proprietorship                                     (    ) Limited Liability Company
      ( ) Partnership                                             (    ) Limited Liability Partnership
      ( ) Corporation                                             (    ) Other:


Bidder’s Taxpayer ID No.:

Bidder’s Address:
                      Street                             City              State        Zip Code

Bidder’s Website Address:                                                  ____________________

Email Address:        ____________________________________




                                              Page 21 of 43
                         RFP 09-902 Addendum #2
                      EMPLOYEE BENEFITS PROGRAMS
                           Issued: March 3, 2010




Project Manager:                                     Legal Contact:
Name:                                                Name:                              _

Street:                                              Street:                            __

City:                                  _____         City:                              __

State:                                 _____         State:

Phone:                                               Phone:

Fax:                                   _____         Fax:

Email:                                               Email:


Alternate Project Contact:                           Alternate Legal Contact:

Name:                                                Name:

Phone:                                               Phone:

Fax:                                                 Fax:                       _____

Email:                                               Email:

If you are not a registered supplier and would like notices of future opportunities,
please register at: www.cityoftulsapurchasing.org.




                                     Page 22 of 43
                  RFP 09-902 Addendum #2
               EMPLOYEE BENEFITS PROGRAMS
                    Issued: March 3, 2010


      GENERAL TERMS AND CONDITIONS OF SEALED PROPOSALS

   THESE ITEMS APPLY TO AND BECOME A PART OF THE PROPOSAL

NO EXCEPTIONS TO THESE TERMS & CONDITIONS WILL BE CONSIDERED


     1.      PROPOSALS MUST BE SUBMITTED ON THIS FORM ONLY
             INCLUDING A SIGNATURE OF AN AUTHORIZED AGENT. Each
             proposal shall be placed in a separate envelope. Be sure envelope
               is completely and properly identified and sealed, showing the
             proposal number and date in the lower left hand corner. Proposals
             must be time stamped in the office of the City Clerk by 5:00 P.M. on
             the day before date of opening.

     2.      No vendor may withdraw his proposal for a period of thirty (180) days
             after the date and hour set for the opening of proposals.

     3.      Any exceptions or deviations from written specifications shall be
             shown in writing and attached to the proposal form.

     4.      Each vendor agrees to comply with the terms of Title 5, Chapter 1, of
             Tulsa, Oklahoma Charter and revised ordinances relating to equal
             employment opportunity.

     5.      THE ENCLOSED FORMS REGARDING NON-COLLUSION AND
             FINANCIAL INTEREST MUST BE SIGNED, NOTARIZED, AND
             RETURNED WITH THE PROPOSAL.

     6.      The City of Tulsa reserves the right to reject any and all proposals, to
             waive any technicalities in the proposal, and to award each item to
             different vendor or all items to a single vendor.

     7.      Vendor agrees to defend and save City of Tulsa from and against all
             demands, claims, suits, costs, expenses, damages and judgments
             based upon infringement of any patent relating to services specified
             in this order or the ordinary use or operation of such services by City
             or use or operation of such services in accordance with vendor’s
             direction.

     8.      If the vendor requires a written contract, the successful proposal shall
             execute a written contract with the City of Tulsa and return the
             required bonds and insurance certificates within ten (10) days after
             submission of contracts to said vendor by the City.

                               Page 23 of 43
                            RFP 09-902 Addendum #2
                         EMPLOYEE BENEFITS PROGRAMS
                              Issued: March 3, 2010



                             INTEREST AFFIDAVIT


STATE OF ________          }
                           } ss
COUNTY OF _______          }


I, _____________________________________, of lawful age, being first duly sworn, state
that I am the agent authorized by Seller to submit the attached bid. Affiant further states that
no officer or employee of the City of Tulsa either directly or indirectly owns a five percent (5%)
interest or more in the bidder's business or such a percentage that constitutes a controlling
interest. Affiant further states that the following officers and/or employees of the City of Tulsa
have less than a controlling interest, either direct or indirect, in Seller’s business:
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________


                                           By:
                                                    Signature
                                           Title:




Subscribed and sworn to before me this ________day of ______________, 20____.



Notary Public

My Commission Expires:

Notary Commission Number:


 The Interest Affidavit must be completed, signed by an
            authorized agent, and notarized.

                                          Page 24 of 43
                             RFP 09-902 Addendum #2
                          EMPLOYEE BENEFITS PROGRAMS
                               Issued: March 3, 2010
                              NON-COLLUSION AFFIDAVIT
                      (Required by Oklahoma law, 74 O.S. §85.22-85.25)

STATE OF                             )
                                     )ss.
COUNTY OF                            )

I,                                                           , of lawful age, being first duly
sworn, state that:
      (Seller’s Authorized Agent)

       1.       I am the authorized agent of Seller herein for the purposes of certifying facts
                pertaining to the existence of collusion between and among bidders and
                municipal officials or employees, as well as facts pertaining to the giving or
                offering of things of value to government personnel in return for special
                consideration in the letting of any contract pursuant to the bid to which this
                statement is attached.

       2.       I am fully aware of the facts and circumstances surrounding the making of
                Seller’s Bid to which this statement is attached, and I have been personally and
                directly involved in the proceedings leading to the submission of such bid; and

      3.      Neither the Seller nor anyone subject to the Seller’s direction or control has
been a party:
              a.    to any collusion among bidders in restraint of freedom of competition
                    by agreement to bid at a fixed price or to refrain from bidding,
              b.    to any collusion with any municipal official or employee as to quantity,
                    quality, or price in the prospective contract, or as to any other terms of
                    such prospective contract, nor
              c.    in any discussions between bidders and any municipal official
                    concerning exchange of money or other thing of value for special
                    consideration in the letting of a contract.

                                                    By:
                                                             Signature

                                                    Title:

Subscribed and sworn to before me this ________day of ______________, 20____.


Notary Public

My Commission Expires:
Notary Commission Number:
                                            Page 25 of 43
                             RFP 09-902 Addendum #2
                          EMPLOYEE BENEFITS PROGRAMS
                               Issued: March 3, 2010

                               AFFIDAVIT OF CLAIMANT


STATE OF                           )
                                   )ss.
COUNTY OF                          )
The undersigned person, of lawful age, being first duly sworn on oath, says that all invoices to
be submitted pursuant to this agreement with the City of Tulsa will be true and correct. Affiant
further states that the work, services or material furnished will be completed or supplied in
accordance with the plans, specifications, orders, requests or contract furnished or executed
by the affiant. Affiant further states that (s)he has made no payment directly or indirectly to
any elected official, officer or employee of the City of Tulsa or of any public trust where the
City of Tulsa is a beneficiary, of money or any other thing of value to obtain payment of the
invoice or procure the contract or purchase order pursuant to which an invoice is submitted.
Affiant further certifies that (s)he has complied with the terms of Title 5, Chapter 1, Section
110 of Tulsa Revised Ordinances relating to equal employment opportunity.

              COMPANY NAME:____________________________________

              Remit to:     _________________________________________
              Address:      __________________________________________

              City,State,Zip: _________________________________________

              Phone:        __________________________________________

              Signature: _________________________________________

              Title:


Subscribed and sworn to before me this            day of                    , 20     .

_______________________________________________
           Notary Public

My commission expires: ____________________

My commission number: ____________________

     The Affidavit must be signed by an authorized agent and
                                          notarized

                                          Page 26 of 43
                           RFP 09-902 Addendum #2
                        EMPLOYEE BENEFITS PROGRAMS
                             Issued: March 3, 2010




                     REQUEST FOR PROPOSAL 09-902
                       HUMAN RESOURCES DEPARTMENT

                    EMPLOYEE BENEFITS PROGRAMS


INTRODUCTION / OVERVIEW

Introduction
The City of Tulsa (City) is soliciting proposals from qualified vendors to provide quotes for
most (but not all) of its benefits programs with an effective date of July 1, 2010. The City
seeks to contract with vendors that exhibit the ability to partner with the City over a multi-
year period of time assuming selected vendors performance is according to expectations.

In 2009, the City only marketed medical/prescription services (and those services
associated with medical/prescription) due to procurement requirements. This provided the
City with an opportunity to express to the markets the goods/services that were deemed
most important to the health plan. The marketing process yielded significant creativity and
flexibility from vendors resulting in innovative solutions with multiple elements of cost
containment. It was ultimately determined that BlueCross BlueShield of Oklahoma
(BCBSOK) offered the most advantageous offering for the City.

Prospective vendors should realize that the City is willing to:
    Communicate effectively with the markets
    Engage in creative solutions that will ultimately benefit participants
    Partner with a vendor that best positions the organization to achieve optimal results

The City’s objectives have remained unchanged as they strive to:
    Ensure employee access to quality care
    Maintain a strategy which will effectively reduce the rate at which health benefits
      costs increase in the future for all employees
    Maintain maximum benefit flexibility while controlling cost objectives
    Improve the health status of its members



                                         Page 27 of 43
                           RFP 09-902 Addendum #2
                        EMPLOYEE BENEFITS PROGRAMS
                             Issued: March 3, 2010

In 2010, the City is marketing multiple lines of coverage including medical/prescription
benefits. Those eligible to participate in the City’s plan include:

 BENEFITS                                           CURRENT (’09-’10)
 Medical/Prescription (includes                           Active Employees of the City
 Wellness/Clinic)                                     of Tulsa or associated agencies
 Dental                                               (union and non-union employees);
 Vision
                                                          Retirees under the age of 65
 Life/Accidental Death & Disability
 Long Term Disability                                 *
 Employee Assistance Program                              COBRA participants
 Flexible Spending Administration
 COBRA Administration                               * Retirees are only eligible for
                                                      Medical/Prescription Benefits

Overview
Medical/Prescription/Wellness/Clinic Benefits
The City has approximately 2,600 employees participating on a fully insured
medical/prescription benefit plan currently administered by BCBSOK. The City offers a
single plan design with benefit incentives for employees to utilize preferred providers as
defined by BCBSOK. A summary plan description has been provided in the Exhibits
Section of this RFP.

Although the City has been fully insured for years, we would like to explore self-funded
funding options. Therefore, the City has asked all providers to quote both fully insured
and self-funded options if applicable.

The City has been committed to wellness and prevention initiatives for its plan participants
for years. Under its current arrangement, the City supports these initiatives with
considerable time, money, and resources with the support, coordination, and additional
funding from BCBSOK. The City seeks to partner with a vendor that can not only support
its current initiatives, but also provide fresh and innovative approaches that enhance the
education and compliance of plan participants resulting in healthier and happier plan
participants.

In 2009, the City expressed its desire to explore the possibility of a City-managed on-site
minor illness clinic. The result was a partnership among BCBSOK, Hillcrest, and Utica
Park Physicians Clinic to set up two on-site clinics. The City provides space and other
organizational services while Hillcrest, Utica Park, and BCBSOK provide set-up, staffing,
operational, and management services for these two sites. The City seeks to partner with
a vendor that can not only support its current initiatives, but also provide new initiatives in
this space.

Dental
The City has approximately 2,500 employees participating on the fully insured voluntary
                                         Page 28 of 43
                          RFP 09-902 Addendum #2
                       EMPLOYEE BENEFITS PROGRAMS
                            Issued: March 3, 2010


dental plan currently administered by Guardian. The current plan design is a single PPO
Dental. The City seeks to match as closely as possible its current plan design, but
welcomes review and analysis of alternative plan design options.

Vision
The City has approximately 1,600 employees participating on the fully insured voluntary
vision plan currently administered by VSP. The current plan design offers a 12/24/12
(Exam/Frame/Lenses or Contacts) with co-pays for standard plastic lenses and discounts
for most other benefits. The City seeks to match as closely as possible its current plan
design but welcomes review and analysis of alternative plan design options.

Life and Accidental Death & Dismemberment
The City currently offers a fully insured basic and voluntary life and accidental death &
dismemberment benefit through Minnesota Life. Benefit details are outlined in the
Exhibits Section of this RFP. The City seeks to match as closely as possible its current
plan design, but welcomes review and analysis of alternative plan design options.

Short Term Disability
The City does not currently offer this benefit to its employees on a group or voluntary
basis. The City seeks to obtain quotes from vendors that will provide options for review
under an employer contributory and/or non-contributory basis.

Long Term Disability
The City currently offers LTD benefits through Aetna. The City seeks to match as closely
as possible its current plan design, but welcomes review and analysis of alternative plan
design options.

Employee Assistance Program (EAP)
The City’s EAP benefits are currently administered by Community Care. The City offers a
standard 3-visit face-to-face model. The City seeks to match as closely as possible its
current plan design but welcomes review and analysis of alternative plan design options.

COBRA Administration
COBRA is currently administered by Benesyst. Please refer to the attached SPD of this
RFP for more detail. The City seeks to continue to outsource these services.

FSA Administration
FSA is currently administered by Benesyst. Please refer to the attached SPD of this RFP
for more detail. The City seeks to continue to outsource these services.




                                       Page 29 of 43
                                 RFP 09-902 Addendum #2
                              EMPLOYEE BENEFITS PROGRAMS
                                   Issued: March 3, 2010


                                           CITY OF TULSA
                                      FLEXIBLE BENEFITS PLAN

                                   SUMMARY PLAN DESCRIPTION

                                           INTRODUCTION
We are pleased to announce that we have established a “Flexible Benefit Plan” for you and other
eligible employees. Under this Plan, you will be able to choose among certain benefits that we make
available. The Plan is designed to work in conjunction with a variety of health plans we may sponsor
and you may choose to enroll in from time to time. The benefits that you may choose are outlined in
this Summary Plan Description. We will also tell you about other important information concerning
the Plan, such as the rules you must satisfy before you can join and the laws that protect your rights.
One of the most important features of our Plan is that the benefits being offered are generally ones
that you are already paying for, but normally with money that has first been subject to income and
Social Security taxes. Under our Plan, these same expenses will be paid for with a portion of your
pay before Federal or state income or Social Security taxes are withheld. This means that you will
pay less tax and have more money to spend and save.

Read this Summary Plan Description carefully so that you understand the provisions of our Plan and
the benefits you will receive. You should direct any questions you have to the Administrator. There
is a Plan Document on file that you may review if you desire. In the event there is a conflict between
this Summary Plan Description and the Plan Document, the Plan will control. Also, if there is a
conflict between an insurance contract and either the Plan Document or this Summary Plan
Description, the insurance contract will control.


ELIGIBILITY

When Can I Become a Participant in the Plan?

Before you become a member or a “participant” in the Plan there are certain rules which you must
satisfy. First, you must meet the “eligibility requirements.” After that, the next step is to actually join
the Plan on the “entry date” that we have established for all employees. You will also be required to
complete certain application forms before you can enroll in the Health Care Reimbursement Plan or
Dependent Daycare Assistance Plan.
In some circumstances, owners of the Employer are not eligible to participate. For example, if the
Employer is an S corporation, 2% or more shareholders could not participate. Also, members of a
limited liability company (“LLC”) are not eligible to participate. Please contact the Administrator if you
are an owner and want more information about these restrictions.




                                               Page 30 of 43
                                RFP 09-902 Addendum #2
                             EMPLOYEE BENEFITS PROGRAMS
                                  Issued: March 3, 2010


What Are the Eligibility Requirements for Our Plan?

You will be eligible to join the Plan once you have satisfied the conditions for coverage under our
group medical plan.


When Is My Entry Date?

You can join the Plan on the same day you can enter our group medical plan.


What Must I Do to Enroll in the Plan?

 Before you can join the Plan, you must complete an application to participate in the Plan. The
application includes your personal choices for each of the benefits that are being offered under the
Plan. You must also authorize us to set some of your earnings aside in order to pay for the benefits
you have elected. However, if you are already covered under any of the insured or self-funded
benefits, you will automatically participate in this Plan to the extent of your premiums unless during
the “election period” you elect not to participate in this Plan.


OPERATION

How Does This Plan Operate?

Before the start of each Plan Year, you will be able to elect to have some of your upcoming pay
contributed to the Plan. These amounts will be placed in special funds or accounts that must be set
up for you in order to pay for the benefits you have chosen. The portion of your pay that is paid to
the Plan is not subject to Federal or State income or Social Security taxes. In other words, this
allows you to use tax-free dollars to pay for certain kinds of benefits and expenses that you normally
pay for with out-of-pocket, taxable dollars. However, if you receive a reimbursement for an expense
under the Plan, you cannot claim a Federal income tax credit or deduction on your tax return.


CONTRIBUTIONS

How Much of My Pay May the Employer Redirect?

Each year, for the premium payment benefits provided under this plan, we will automatically
contribute on your behalf enough of your compensation to pay for the coverage provided. In addition,
you may elect to pay for the benefits that you elect under the Plan. These amounts will be deducted
from your pay over the course of the year.


                                             Page 31 of 43
                                 RFP 09-902 Addendum #2
                              EMPLOYEE BENEFITS PROGRAMS
                                   Issued: March 3, 2010


How is My Compensation Measured Under Our Plan?

Compensation under our Plan means the total cash amount that is paid to you each year.


What Happens to Contributions Made to the Plan?

Before each Plan Year begins, you will select benefits you want and how much of the contributions
should go towards each benefit. It is very important that you make these choices carefully based on
what you expect to spend on each covered benefit or expense during the Plan Year. Later, they will
be used to pay for the expenses as they arise during the Plan Year.


When Must I Decide Which Accounts I Want to Use?

You are required by Federal law to decide before the Plan Year begins, during the “election period.”
You must decide two things. First, which benefits you want and second, how much should go toward
each benefit.

If you are already covered by any of the insured or self-funded benefits offered by this Plan, you will
automatically become a Participant to the extent of the premiums for such benefits unless you elect,
during the “election period,” not to participate in the Plan.


When Is the “Election Period” for Our Plan?

Your election period will start on the date you first meet the “eligibility requirements” and end 30 days
after your “entry date.” (You should review Section I on Eligibility to better understand the terms
“eligibility requirements” and “entry date.”) Then, for each following Plan Year, the election period will
be the 60-day period prior to the beginning of each Plan Year. (See the Article entitled “General
Information about Our Plan” for the definition of Plan Year.)


May I Change My Elections During the Plan Year?

Generally, you cannot change the elections you have made after the beginning of the Plan Year.
However, there are certain limited situations when you can change your elections. You are permitted
to change elections if you have a “change in status” and you make an election change that is
consistent with the “change in status.” Currently, Federal law considers the following events to be
“changes in status”:




                                              Page 32 of 43
                                RFP 09-902 Addendum #2
                             EMPLOYEE BENEFITS PROGRAMS
                                  Issued: March 3, 2010


      Marriage, divorce, death of a spouse, legal separation or annulment;

      Change in the number of dependents, including birth, adoption, placement for adoption, or
       death of a dependent;

      Any of the following events for you, your spouse or dependent: termination or
       commencement of employment, a strike or lockout, commencement or return from an
       unpaid leave of absence, a change in worksite, or any other change in employment
       status that affects eligibility for benefits;

      One of your dependents satisfies or ceases to satisfy the requirements for coverage due to
       change in age, student status, or any similar circumstance; and

      A change in the place of residence of you, your spouse or dependent.

In addition, if you are participating in the Dependent Daycare Assistance Plan, then there is a
“change in status” if your dependent no longer meets the qualifications to be eligible for dependent
daycare.

There are detailed rules on when a change in election is deemed to be consistent with a “change in
status.” In addition, there are laws that give you rights to change accident and health coverage for
you, your spouse, or your dependents. If you change coverage due to rights you have under the law,
then you can make a corresponding change in your elections under the Plan. If any of these
conditions apply to you, you should contact the Administrator.

If the cost of a benefit provided under the Plan increases or decreases during a Plan Year, then we
will automatically increase or decrease, as the case may be, your salary redirection election. If the
cost increases significantly, you will be permitted to either make corresponding changes in your
payments or revoke your election and obtain coverage under another benefit package option with
similar coverage.

If the coverage under a benefit is significantly curtailed or ceases during a Plan Year, then you may
revoke your elections and elect to receive on a prospective basis coverage under another plan with
similar coverage. In addition, if we add a new coverage option or eliminate an existing option, you
may elect the newly-added option (or elect another option if an option has been eliminated) and
make corresponding election changes to other options providing similar coverage. There are also
certain situations when you may be able to change your elections on account of a change under the
plan of your spouse’s, former spouse’s or dependent’s employer.




                                             Page 33 of 43
                               RFP 09-902 Addendum #2
                            EMPLOYEE BENEFITS PROGRAMS
                                 Issued: March 3, 2010

These rules on change due to cost or coverage do not apply to the Health Care Reimbursement
Plan, and you may not change your election to the Health Care Reimbursement Plan if you make a
change due to cost or coverage for insurance.

You may not change your election under the Dependent Daycare Assistance Plan if the cost change
is imposed by a dependent daycare provider who is your relative.


May I Make New Elections in Future Plan Years?

Yes, you may. For each new Plan Year, you may change the elections that you previously made.
You may also choose not to participate in the Plan for the upcoming Plan Year. New elections must
be made during the “election period” prior to the beginning of each Plan Year.


BENEFITS

What Benefits Are Available?

Under our Plan, you can choose to receive your entire compensation in cash or use a portion to pay
for the following benefits or expenses during the year:

Health Care Reimbursement Plan:
      The Health Care Reimbursement Plan enables you to pay for expenses which are not
      covered by our insured or self-funded group medical plan and save taxes at the same
      time. The General Purpose Health Care Reimbursement Account allows you to be
      reimbursed by the Employer for out-of-pocket medical, dental and vision expenses
      incurred by you and your dependents. The expenses that qualify are generally those
      permitted by Section 213 of the Internal Revenue Code, including over-the-counter
      drugs as defined by the IRS; however, long-term care expenses may not be reimbursed
      to you through the Health Care Reimbursement Plan. In addition, you may not be
      reimbursed for the cost of other health care coverage maintained outside of the Plan.
      The most that you can contribute to your General Purpose Health Care Reimbursement
      Plan each Plan Year is $5,000. In order to be reimbursed for a health care expense, you
      must submit to the Administrator an itemized bill from the service provider. Amounts
      reimbursed from the Plan may not be claimed as a deduction on your personal income
      tax return. Reimbursement from the account shall be paid at least once a month.

Dependent Daycare Assistance Account:
     The Dependent Daycare Assistance Account enables you to pay for out-of-pocket, work-
     related dependent daycare cost with pre-tax dollars. If you are married, you can




                                           Page 34 of 43
                                RFP 09-902 Addendum #2
                             EMPLOYEE BENEFITS PROGRAMS
                                  Issued: March 3, 2010
      use the account if you and your spouse both work or, in some situations, if your spouse
      goes to school full-time. Single employees can also use the account.

      An eligible dependent is any member of your household for whom you can claim
      expenses on Federal Income Tax form 2441 “Credit for Child and Dependent Care
      Expenses.” Children must be under age 13. Other dependents must be physically or
      mentally unable to care for themselves. Dependent Daycare Arrangements that qualify
      include:
          A Dependent Daycare Center, provided that if care is provided by the facility for more
            than six individuals, the facility complies with applicable state and local laws.

             An Educational Institution for pre-school children. For older children, only expenses
              for non-school care are eligible.

             An “Individual” who provides care inside or outside your home. The “Individual”
              may not be a child of yours under age 19 or anyone you claim as a dependent for
              Federal tax purposes.


      You should make sure that the dependent daycare expenses you are currently paying
      for qualify under our Plan. The law places limits on the amount of money that can be
      paid to you in a calendar year from your Dependent Daycare Assistance Account.
      Generally, your reimbursements may not exceed the lesser of:

          a. $5,000 (if you are married filing a joint return or you are head of a household) or $2,500 (if
             you are married filing separate returns);

          b. Your taxable compensation; or

          c. Your spouse’s actual or deemed earned income (a spouse who is a full-time student or
             incapable of caring for himself/herself has a monthly earned income of $200 for one
             dependent or $400 for two or more dependents).

Also, in order to have the reimbursements made to you from this account be excluded from your income,
you must provide a statement from the service provider including the name, address, and, in most cases,
the taxpayer identification number of the service provider on your tax form for the year, as well as the
amount of such expense, as proof that the expense has been incurred. In addition, Federal tax laws
permit a tax credit for certain dependent daycare expenses you may be paying for even if you are not a
participant in this Plan. You may save more money if you take advantage of this tax credit rather than
using the Dependent Daycare Assistance Account under our Plan. Ask your tax adviser which is better
for you.

Premium Expense Account:




                                              Page 35 of 43
                                RFP 09-902 Addendum #2
                             EMPLOYEE BENEFITS PROGRAMS
                                  Issued: March 3, 2010
      A Premium Expense Account allows you to use tax-free dollars to pay for certain
      premium expenses under various insurance programs that we offer you. These
      premium expenses include:
          Health care premiums under our insured or self-funded group medical plan.

The Administrator may terminate or modify Plan benefits at any time, subject to the provisions of any
contracts providing benefits described above. Also, your coverage will end when you leave
employment, are no longer eligible under the terms of any coverage, or when coverage terminates.
Any benefits to be provided by insurance will be provided only after (1) you have provided the
Administrator the necessary information to apply for insurance, and (2) the insurance is in effect for
you.


BENEFIT PAYMENTS

When Will I Receive Payments From My Accounts?

During the course of the Plan Year, you may submit requests for reimbursement of expenses that
you have incurred. Expenses are considered “incurred” when the service is performed, not
necessarily when they are paid for. The Administrator will provide you with acceptable forms for
submitting these requests for reimbursement. If the request qualifies as a benefit or expense that the
Plan has agreed to pay, you will receive a reimbursement payment soon thereafter. Remember,

these reimbursements which are made from the Plan are generally not subject to Federal income tax
or withholding. Nor are they subject to Social Security taxes. The provisions of the insurance
contracts will control what benefits will be paid and when. You will only be reimbursed from the
Dependent Daycare Assistance Account to the extent that there are sufficient funds in the Account to
cover your request.


What Happens If I Don’t Spend All Plan Contributions?

In general, any monies left at the end of the Plan Year will be forfeited. Obviously, qualifying
expenses that you incur late in the Plan Year for which you seek reimbursement after the end of such
Plan Year will be paid first before any amount is forfeited. However, you must make your requests
for reimbursement no later than two-months after the end of the Plan Year. Because it is possible
that you might forfeit amounts in the Plan if you do not fully use the contributions that have been
made, it is important that you decide how much to place in each account carefully and conservatively.
 Remember that you must decide which benefits you want to contribute to and how much to place in
each account before the Plan Year begins. You want to be as certain as you can that the amount
you decide to place in each account will be used up entirely.




                                             Page 36 of 43
                                RFP 09-902 Addendum #2
                             EMPLOYEE BENEFITS PROGRAMS
                                  Issued: March 3, 2010


What Happens If I Terminate Employment?

Under Federal law, you, your spouse, and/or your covered dependents lose coverage under this
Plan, and your pre-tax contributions to all of your accounts will stop. However, you, your spouse,
and/or your covered dependents may be entitled to continuation of health care coverage, including
the Health Care Reimbursement Plan. The Administrator will inform you of these rights.

Please refer to the COBRA Continuation Coverage section under Article IX for further information.


Will My Social Security Benefits Be Affected?

Your Social Security benefits may be slightly reduced because when you receive tax-free benefits
under our Plan, it reduces the amount of contributions that you make to the Federal Social Security
system as well as our contribution to Social Security on your behalf.


HIGHLY COMPENSATED AND KEY EMPLOYEES

Do Limitations Apply to Highly Compensated Employees and Key Employees?

Under the Internal Revenue Code, “highly compensated employees” and “key employees” generally
are Participants who are officers, shareholders or highly paid. You will be notified by the

Administrator each Plan Year whether you are a “highly compensated employee” or a “key
employee.”

If you are within these categories, the amount of contributions and benefits for you may be limited so
that the Plan as a whole does not unfairly favor highly compensated or key employees, their spouses
or their dependents. Federal tax laws state that a plan will be considered to unfairly favor the highly
compensated or key employees if they as a group receive more than 25 percent of all of the
nontaxable benefits provided for under our Plan.

Plan experience will dictate whether contribution limitations on “highly compensated employees” or
“key employees” will apply. You will be notified of these limitations if you are affected.




                                             Page 37 of 43
                                RFP 09-902 Addendum #2
                             EMPLOYEE BENEFITS PROGRAMS
                                  Issued: March 3, 2010


PLAN ACCOUNTING

Periodic Statements

The Administrator will provide you with a statement of your account periodically during the Plan Year
that shows your account balance. It is important to read these statements carefully so you
understand the balance remaining to pay for a benefit. Remember that you want to spend all the
money you have designated for a particular benefit by the end of the Plan Year.


GENERAL INFORMATION ABOUT OUR PLAN

This Section contains certain general information that you may need to know about the Plan.


General Plan Information

City of Tulsa Flexible Benefits Plan is the name of the Plan.
Your Employer has assigned Plan Number 501 to your Plan.
The provisions of the Plan become effective July 1, 1986, which is called the Effective Date of the
Plan. The Plan is amended effective July 1, 2009.
Your Plan’s records are maintained on a twelve-month period of time. This is known as the Plan
Year. The Plan Year begins on July 1 and ends on June 30.


Employer Information

Your Employer’s Name, address, and identification number are:

   City of Tulsa
   175 East 2nd, Ste 585
   Tulsa, OK 74103
   Employer ID #73-6005470
Plan Administrator Information

The name, address and business telephone number of the Plan Administrator (the “Administrator”)
are:
   City of Tulsa
   175 East 2nd, Ste 585
   Tulsa, OK 74103
   (918) 596-1214




                                             Page 38 of 43
                                 RFP 09-902 Addendum #2
                              EMPLOYEE BENEFITS PROGRAMS
                                   Issued: March 3, 2010
The Administrator will also answer any questions you may have about our Plan. You may contact the
Administrator for any further information about the Plan.


Third-Party Administrator Information

Your Employer has hired a third-party administrator to assist with the administration of your Plan.
The name, address and business telephone number of that third-party administrator are:
   Benesyst, Inc.
   800 Washington Avenue North
   8th Floor
   Minneapolis, MN 55401
   (800) 670-7131

The third-party administrator keeps the records for the Plan and, together with the Plan Administrator,
is responsible for the administration of the Plan.


Service of Legal Process

The name and address of the Plan’s agent for service of legal process are:
   City of Tulsa
   175 East 2nd, Ste 585
   Tulsa, OK 74103

Type of Administration

The Employer is the Plan Administrator for purposes of ERISA. The Employer may, in its sole
discretion, hire a third-party administrator to assist it with the day-to-day administration of the Plan.


Plan Amendments

Congress or the IRS could issue new rules that would require the Plan to be changed or terminated
in the future. Also, new rules could cause your payments made under the Plan to be partially or fully
taxed. If taxes were imposed on the payments made, it would be your responsibility to pay the
resulting taxes, interest and penalties. We mention these tax issues not to discourage you from
participating, but to alert you to the uncertainties in the law. Finally, the Employer has necessarily
reserved the power to amend the provisions of the Plan or terminate the Plan in the future. The
Employer cannot guarantee that the Plan will be permanent or that the desired tax results will in all
events occur.




                                               Page 39 of 43
                                 RFP 09-902 Addendum #2
                              EMPLOYEE BENEFITS PROGRAMS
                                   Issued: March 3, 2010


ADDITIONAL PLAN INFORMATION

Your Rights Under ERISA

Plan participants, eligible employees and all other employees of the Employer may be entitled to
certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA)
and the Internal Revenue Code if ERISA is applicable. These laws provide that participants, eligible
employees and all other employees are entitled to:

       a. examine, without charge, at the Administrator’s office, all Plan documents, and copies of all
          documents filed by the Plan with the U.S. Department of Labor, such as detailed annual
          reports and Plan descriptions; and

       b. obtain copies of all Plan documents and other Plan information upon request to the
          Administrator. The Administrator may charge a reasonable fee for the copies.

In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are
responsible for the operation of an employee benefit plan. The people who operate your Plan, called
“fiduciaries” of the Plan, have a duty to do so prudently and in the best interest of you and other Plan
participants.

No one, including your employer or any other person, may fire you or otherwise discriminate against
you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA.
If your claim for a benefit is denied in whole or in part, you must receive a written explanation of the
reason for the denial. You have the right to have your claim reviewed and reconsidered.

Under ERISA there are steps you can take to enforce the above rights. For instance, if you request
materials from the Plan and do not receive them within thirty (30) days, you may file suit in a Federal
court. In such a case, the court may request the Administrator to provide the materials and pay you
up to $110 a day until you receive the materials, unless the materials were not sent because of

reasons beyond the control of the Administrator. If you have a claim for benefits which is denied or
ignored, in whole or in part, you may file a suit in a state or Federal court.

If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against
for asserting your rights, you may seek assistance for the U.S. Department of Labor, or you may file
a suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are
successful, the court may order the person you have sued to pay these costs and fees. If you lose,
the court may order you to pay these costs and fees; for example, if it finds your claim is frivolous.



                                              Page 40 of 43
                                RFP 09-902 Addendum #2
                             EMPLOYEE BENEFITS PROGRAMS
                                  Issued: March 3, 2010
If you have any questions about your Plan, you should contact the Plan Administrator. If you have
any questions about this statement or about your rights under ERISA, you should contact the nearest
Area Office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in
your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits
Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington,
D.C. 20210.


Claims Process

You should submit reimbursement claims during the Plan Year, but in no event later than two-months
after the end of a Plan Year. Any claims submitted after that time will not be considered. Claims for
benefits that are insured or self-funded will be reviewed in accordance with procedures contained in
the policies. All other general claims or requests should be directed to the Administrator of our Plan.
 If a claim under the Plan is denied in whole or in part, you or your beneficiary will receive written
notification. The notification will include the reasons for the denial, with reference to the specific
provisions of the Plan on which the denial was based, a description of any additional information
needed to process the claim and an explanation of the claims review procedure. If we fail to respond
within 30 days (45 if special circumstances apply), your claim is treated as denied. Within 180 days
after denial, you or your beneficiary may submit a written request for reconsideration of the
application to the Administrator.

Any such request should be accompanied by documents or records in support of your appeal. You
or your beneficiary may review pertinent documents and submit issues and comments in writing. The
administrator will review the claim and provide, within 60 days (120 days if special circumstances
apply), a written response to the appeal. In this response, the Administrator will explain the reason
for the decision, with specific reference to the provisions of the Plan on which the decision is based.
The Administrator has the exclusive right to interpret the appropriate plan provisions. Decisions of
the Administrator are conclusive and binding.


COBRA Continuation Coverage

Under Federal law, you, your spouse, and your dependents may be entitled to continuation of health
care coverage. The Administrator will inform you, your spouse and your dependents of these rights.
Generally, if we (and any related companies) employed twenty (20) or more employees “on a typical
business day” in the preceding calendar year, health plan continuation must be made available for a
period not to exceed eighteen (18) months if a loss of benefits occurs because of your termination of
employment or reduction of hours, or for a period not to exceed three (3) years for any of the other

reasons given in (b) and (c) below. Under certain circumstances, persons who are disabled at the


                                             Page 41 of 43
                                 RFP 09-902 Addendum #2
                              EMPLOYEE BENEFITS PROGRAMS
                                   Issued: March 3, 2010
time of termination of employment or reduction in hours, or within the first 60 days of COBRA
coverage, may be eligible for continuation of coverage for a total of 29 months (rather than 18). You
should check with the Administrator for more details regarding this extended coverage. However, in
certain circumstances, this continuation coverage may be terminated for reasons such as (i) failure to
pay continuation coverage cost, (ii) coverage under another employer’s plan (whether as an
employee or otherwise, provided the other employer’s health plan does not contain any exclusion or
limitation with respect to any pre-existing condition of the beneficiary, unless the pre-existing
condition limit does not apply to, or is satisfied by, the qualified beneficiary by reason of the group
health plan portability, access and renewability requirement of the Health Insurance Portability and
Accountability Act, ERISA, or the Public Health Services Act), (iii) termination of our health plan, (iv) a
termination of employment for gross misconduct, such as fraud, or (v) you (or the person entitled to
continued coverage) become entitled to Medicare benefits. However, if you become enrolled in
Medicare, your dependents may still qualify for continuation coverage. The cost of continuation
coverage must be paid by the individual choosing such coverage; however, the cost may not exceed
102% of the cost of the same coverage for a “similarly situated” employee or family member. When
the continuation coverage for a disabled person is extended from 18 months to 29 months, the
disabled person may be charged 150% (rather than 102%) of the cost of the coverage after
expiration of the initial 18-month period.

       a. If you, your spouse and your dependents would otherwise lose health plan coverage under this
          Plan because of your termination of employment or reduction in hours, you, your spouse or
          your dependents may continue the health plan coverage provided under this Plan. However,
          this will not be a tax-deductible expense to you, absent unusual circumstances.

       b. Your spouse may choose continuation coverage for himself/herself if he/she loses group
          health coverage for any of the following reasons: (1) your death; (2) your divorce or legal
          separation; or (3) you become entitled to Medicare.

       c. Your dependent children, including a child born to or placed for adoption with the Participant
          during the period of COBRA coverage, may choose continuation coverage for themselves if
          they lose group health coverage for any of the following reasons: (1) death of a parent;
          (2) your divorce or legal separation; (3) you become entitled to Medicare; or (4) your
          dependent ceases to be a dependent child under the Plan.


It is your responsibility to notify the Plan Administrator of a divorce, legal separation or other change
in marital status, change in a spouse’s address, or a child losing dependent status under the plan,
within sixty (60) days of the event. It is our responsibility to notify the Plan Administrator of your
death, termination of employment or reduction in hours, or Medicare entitlement.

Special rules apply to the Health Care Reimbursement Plan. Generally, you can elect to continue
your participation in the Health Care Reimbursement Plan only for the remainder of the Plan Year,


                                               Page 42 of 43
                                RFP 09-902 Addendum #2
                             EMPLOYEE BENEFITS PROGRAMS
                                  Issued: March 3, 2010

subject to the following conditions. You may only continue to receive reimbursements if you have
contributed more money than you have taken out in claims. For example, if you elected $500 and by
the day you terminate, you have contributed $300, but only claimed $150, you may continue to
receive your health care reimbursement up to the $500. However, you must continue to pay into your
account, just as the money has been taken out of your paycheck, but on an after-tax basis. The Plan
can also charge you an extra amount to provide this benefit. See your Plan Administrator for details.


SUMMARY

The money you earn is important to you and your family. You need it to pay your bills, enjoy
recreational activities and save for the future. Our Flexible Benefits Plan will help you keep more of
the money you earn by lowering the amount of taxes you pay. The Plan is the result of our
continuing efforts to find ways to help you get the most from your earnings.
If you have any questions, please contact the Administrator.




                                             Page 43 of 43

				
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