HomeMy WebLinkAbout2025-02-19 - Request for Proposals - Employee Benefits Insurance Brokerage & Consulting Services
REQUEST FOR PROPOSALS FOR BENEFIT BROKER SERVICES
Due by March 10, 2025 by 5:00 pm (Pacific Time)
The City of Tukwila is requesƟng proposals from consultants experienced in benefits plan administraƟon,
financial analysis, monitoring, reporƟng, planning and compliance of self-insured benefits programs.
Please review the full RFP following this noƟce for details.
All materials should be submiƩed by email to:
TC Croone, Chief People Officer
Email: tc.croone@tukwilawa.gov
Subject: RFP for Benefit Broker Services
QuesƟons regarding the proposal will be accepted by email only to TC Croone, Chief People Officer, at
tc.croone@tukwilawa.gov
Materials are due by 5:00 pm (Pacific Time) on March 10, 2025. No submiƩals will be accepted aŌer
this date and Ɵme.
Published SeaƩle Times February 19, 2025
Published Daily Journal of Commerce February 19, 2025
City of Tukwila
Request for Proposal
Employee Benefits Insurance Brokerage & Consulting Services
PURPOSE & SCOPE OF WORK
The City of Tukwila invites you to respond to a Request for Proposal (RFP) for brokerage services for our health
insurance plans and ancillary employee benefit plans. This document includes brief information about the City’s
benefits, instructions and deadlines for submitting a proposal, and an RFP questionnaire.
The purpose of this Request for Proposals (RFP) is to solicit proposals from consultants experienced in benefits
plan administration, financial analysis, monitoring, planning and compliance of self-insured benefits programs.
The scope of work for this project is attached as Attachment A and shall be incorporated into this RFP by this
reference.
ABOUT OUR PLANS
The City provides a comprehensive and affordable benefits program for approximately 345 benefit eligible
employees working 20 or more hours per week. Benefits include a self-funded medical, prescription, dental, and
vision plan administered through Third Party Administrative services from Healthcare Management
Administrators (HMA), and MedImpact We also offer a fully-insured medical plan with Kaiser Permanente. The
health plans are managed through the Human Resources Director and designated human resources staff with
input from our union and non-union representatives via a Healthcare Committee.
The City also provides a separate self-funded medical, prescription, dental and vision plan, to police and
firefighter retirees who are members of the Law Enforcement Officers and Firefighters Plan 1 (LEOFF 1), also
administered through HMA and MedImpact. The plan is coordinated with Medicare Part B secondary payer rules
and is governed in accordance with King County LEOFF Board rules.
As of January 1, 2025, there are 883 active employees and family members enrolled in the medical plans
including 32 LEOFF 1 Retirees.
The City pays 90 – 95% of the monthly premiums for all coverage tiers, except for regular part-time
employees who have a pro-rated cost share. The cost share amounts vary between 90 – 95% depending
on the applicable labor agreement with the city.
The 2025 budgeted IBNR reserve is $1,800,000
The 2025 stop loss deductible is currently set at $685,000.
Benefit plans run on a calendar year.
City of Tukwila RFP
Page 2
The City of Tukwila works collaboratively with our Healthcare Committee, made up of labor (3 unions, 8
collective bargaining units) and management representatives, to find successful health insurance
outcomes with consideration of cost savings measures.
The self-funded plans are not grandfathered under the Affordable Care Act.
The self-funded plans have been in place with the City for over 25 years.
Ancillary benefit plans include employer paid basic and voluntary Group Life and Long-Term Disability
plans currently through The Hartford Insurance Company, Flexible Spending Accounts currently through Benefit
Administration Company, and HRA/VEBA accounts currently through Gallagher.
HMA MEDICAL KAISER PERMANENTE MEDICAL
Overall Deductible: $100 individual/$300 family.
Copay: $25 primary care, $40 specialists.
OOP Max Medical: $375 individual/$1175 family.
OOP Max Rx: $1500 individual/$4500 family
Overall Deductible: $0
Copay: $10 primary care and specialist
OOP Max Medical: $2000 individual/$4000
family.
HMA DENTAL/VISION
Dental $2000 calendar year maximum.
Ortho (does not apply to individuals under the
age of 19) Lifetime max is $1,000.
Incentive Benefit Periods 70%, 80%, 90%, 100%
Vision Exam: One exam per year. Exam is covered
under the medical plan.
Frames/lenses: Up to $250 per individual per
year. Up to $500 per family per year. (
Teamsters #763 members (approx 150) are
covered under a Teamsters plan rather than the
city plan.
HMA LEOFF 1 RETIREE MEDICAL and DENTAL/VISION
Medical: Overall Deductible $100. Copay $0. OOP Max $375.
Dental: No deductible, unlimited coverage excluding cosmetic procedures.
Vision: Benefit limited to $800 annual maximum.
City of Tukwila RFP
Page 3
PROPOSAL SUBMISSION INSTRUCTIONS
Please answer all RFP questions and provide any relevant supplementary information or exhibits demonstrating
how you meet or exceed the scope of work requirements outlined in Attachment A.
Questions/Inquiries:
If you have questions concerning the RFP or our selection process, your questions should be submitted to TC
Croone, Chief People Officer via email to tc.croone@tukwilawa.gov. No questions will be accepted verbally or in
written format other than email. Questions received after March 10, 2025 may not be answered.
Please do not contact the insurance markets. Presently, we are only seeking background information on your
firm and ideas on how you would serve our City.
Proposed Timeline:
The City anticipates selection of a consultant in March/April.
Publish RFP. Send RFP to potential brokers: Feb. 14 – Mar. 7
Deadline for proposals: Mar. 10
Internal review of proposals: Mar. 17-21
Interviews & Scoring: Mar. 24-28
Broker selection: Mar. 31- Apr. 4
Notification to brokers: Apr. 7-11
Due Date/Time:
Responses are due no later than March 10, 2025 at 5:00 p.m. Pacific Standard Time. Respondents must submit
one electronic copy via email, including references from three (3) clients of similar size and nature to:
City of Tukwila
Attn: TC Croone, Chief People Officer
6200 Southcenter Blvd.
Tukwila, WA 98188
tc.croone@tukwilawa.gov
Proposal must be received on or before the deadline. Responses received after such time will be disqualified.
All costs for developing proposals in response to this RFP are the obligation of the Consultant and are not
chargeable to the City. All proposals and accompanying documentation will become property of the City and will
not be returned. Proposals may be withdrawn at any time prior to the published close date, provided
notification is received in writing to the above-mentioned City agent. Proposals cannot be withdrawn after the
published close date.
PUBLIC DISCLOSURE NOTICE
All materials provided by the Consultant are subject to STATE of WASHINGTON public disclosure laws. Marking
the entire proposal as proprietary or confidential, and therefore, exempt from disclosure will NOT be accepted
or honored, and may result in disclosure of the entire proposal or disqualification of the proposal solely at the
discretion of the City. Documents identified as confidential or proprietary will not be treated as such if: public
City of Tukwila RFP
Page 4
disclosure laws take precedence, the information is publicly available, the information is in possession of the
City, the information is obtained from third parties, without restrictions on disclosure, or the information was
independently developed without reference to the confidential information.
SELECTION & AWARD
The City reserves the right to reject any Proposal, which is in any way incomplete or irregular. In deciding to
award a contract, the City may consider any and all factors and information which the City feels has bearing on
the decision. The final decision is the sole decision of the City of Tukwila and the respondents to this request
have no appeal rights or procedures guaranteed to them.
All interested parties are requested to provide a response containing all required elements herein to the City of
Tukwila at the stated address by the deadline given.
The City intends to enter into an agreement with the Consultant who provides a proposal that, in the opinion of
the City in its sole discretion, best meets all the below listed evaluation criteria (receives the highest score) as
determined by a selection committee. Further, the City reserves the right to conduct interviews with selected
respondents as necessary to complete its evaluation. Upon selection of a Consultant, the City intends to enter
into an agreement using its standard Consulting Services Agreement which shall be used to secure these
services.
Evaluation Criteria Weight
Experience (experience with projects of a similar size and nature) 30 pts
Proposed Fees/Costs 20 pts
Qualifications (ability to perform the work outlined in Attachment A) 20 pts
References (from three clients of similar size and nature) 20 pts
Number of public sector clients 10 pts
Total 100
City of Tukwila RFP
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RFP QUESTIONNAIRE
A. Your Company
We would like to learn about your firm.
1. Describe your company including local environment, organizational structure, and number and type
of consultants.
2. Tell us about the profile of your clientele for the local office.
i. How many employers are small under 200, mid-market 200-2500, and large?
ii. How many are self-insured and fully insured?
iii. How many are public sector and private sector?
3. Who are the top three health plan carriers or networks that you use and what percent of your
clients are in each.
B. Consulting Team
Tell us about the team proposed to handle our account.
1. Please provide the bios and experience of the team.
2. Provide the profile of accounts that are handled by this team.
3. How do you communicate and manage turnover or replacement of service team members?
4. What is your firm’s process for ensuring customer satisfaction?
C. Strategic Planning
What is your model for strategic planning?
1. Tell us about your approach to forecasting and setting rates and funding levels.
2. Describe your approach to building strategies based on cost and employee satisfaction.
3. Describe your recommended approach for evaluating and managing high cost claims.
D. Compliance
Tell us how you help in our obligations to be compliant with State and Federal requirements, including your
experience related to requirements for government employers in Washington.
1. How do you provide compliance information, examples are helpful.
2. Does your firm have in-house legal counsel or contract for such services?
3. Do you perform compliance audits of our plans?
4. Do you provide a review of plan documents independent of carriers?
5. How do you assist clients with HIPAA awareness and compliance?
6. Do you provide service or support with 1095 reporting?
7. Do you provide service or support with COBRA administration?
City of Tukwila RFP
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RFP QUESTIONNAIRE (Continued)
E. Annual Renewals
Describe your process for annual renewals, including timelines.
1. How do you assist in selecting the proper risk profile with regard to stop loss?
2. What is your philosophy on frequency of going to market with plans?
3. Describe your experience with evaluating ancillary plans, such as life and disability.
F. Reporting
Tell us about your reporting methods and frequency.
1. Provide samples of monthly, quarterly, and/or annual reports.
2. Would your analysis include actuarial review of our utilization?
3. Do you have benchmark data to assist us in understanding our utilization patterns? What is the
source of this data and how is it used?
G. Participant Advocacy
Plan Participants occasionally have difficulty understanding coverage or claim payments, and errors do
occur. The City has a strong commitment to ensuring our employees receive excellent customer service and
support in claims advocacy.
1. Do you provide direct participant customer service?
2. If so, please describe the services provided and how you measure satisfaction around participant
customer service.
3. If you do not, what other options do you recommend to your clients?
H. Scope of Services and Price
We are interested in the opportunity to purchase services that meet our needs, within our budget. Please
provide a detailed list of services and pricing, broken out with the minimum scope or “standard services”
and pricing, separate from any additional or optional services that you offer, along with pricing.
I. Additional Information
What else would you like us to know about your firm and the services you provide?
City of Tukwila RFP
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ATTACHMENT A
DESCRIPTION OF SERVICES/SCOPE OF WORK
Specific responsibilities of the selected firm will include, but will not be limited to, the following:
A. Plan Administration
Provide insurance brokerage and advisory services associated with employee benefit plans. This includes
acting as an intermediary on the City’s behalf with the underwriting community, conducting marketing
activities, analyzing options and proposing recommendations, assisting the City in administering group
insurance plans, responding to questions from and providing information to staff representatives, settling
claim disputes, and other oversight services during the course of the programs.
Represent the City in all negotiations with carriers on all issues including those related to premiums,
benefit levels, plan design and special terms and conditions.
Assist the City with the implementation of new programs including alternate funding arrangement or
changes to existing programs, which may include attending various onsite meetings.
Assist with benefits committee meetings as needed.
Meet with and provide reports to various City representatives, when requested by the City, including the
City Council, administration, employee groups, and staff.
Provide a central resource for documenting activities surrounding the delivery of benefits. The resource
includes benefit plan objectives, current and historical plan data, documentation of plan issues and
decisions, efficiency of renewal processes, and appropriate federal and state plan compliance.
Review benefit designs and provide recommendations on all health and welfare benefits to provide cost
management and savings to the City.
Provide input and recommendations on any mandated benefit design changes. Support annual benefits
open enrollment by providing one or more staff onsite to assist with benefit awareness (facilitating “lunch
and learns”, meeting in person with employees to explain benefits, etc.).
Support Human Resources staff with one or more staff onsite during and after annual benefits open
enrollment to manage EDI feeds, liaise with vendors, auditing, and compliance.
Manage plan changes with vendors as necessary.
Provide leadership with carrier relationship management.
Assist with contract and policy review.
B. Financial Analysis, Monitoring and Planning
Define objectives and initiatives through strategic planning to assist the City in controlling/reducing health
plan expenditures while retaining a competitive benefits program.
Regularly review claims experience, claims service, and claims administration to ensure maximum benefit
to the City.
Analyze factors driving the City’s plan costs and recommend opportunities to better manage costs, access
and quality. Determine and recommend the most economical funding methods for the benefit programs.
Conduct strategic planning sessions to review the performance of the City’s current employee benefits
coverage and establish future objectives and strategies to manage the employee benefit coverage.
City of Tukwila RFP
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Meet with and provide reports to various City representatives as required on an as-needed basis to discuss
strategy and new issues.
Assist the City with the implementation and communication of new programs or changes to existing
programs, which will include attending and presenting information at Open Enrollment meetings.
Research and advise the City of any new developments in the law and employee benefit programs on an
ongoing basis.
As requested, prepare bid specifications and solicit proposals for insurance markets which specialize in
group insurance plans or self-funded programs as needed. Evaluate bids and bidders, including
administration, claim payment procedures, customer service, provider networks, reserve establishment
policies, financial soundness, and identifying the most cost-beneficial package from the various bidders.
Interface with insurance carriers as needed to assist the City in the resolution of problems associated with
the benefit programs.
Provide market data and recommendations for implementation of benefits and programs as requested.
Monitor current market trends; Proactively notify the City of any anticipated rate changes and suggest
alternatives to support low costs to both the City and employees.
Establish comprehensive claims reports for identified coverage such as medical and pharmacy, detailing
paid claims (and reimbursements, if applicable), premium/funding and enrollment summaries.
Provide ongoing quarterly analysis of plan financial experience.
Provide annual financial reporting
Compare premium rates and employee contributions to local, regional or state public sector norms.
Aid in calculation of plan funding rates and prospective employee contributions.
Coordinate annual actuarial analysis to recommend funding rates for the City’s self-insured plans and to
produce a three-year budget projection.
C. Compliance
Provide updates and ongoing assistance with federal and state reporting and compliance as required by
outside agencies. Assist the City in complying with all related Federal and State laws and regulations, as
well as contract requirements.
Research and advise the City on changes in statutes, rules, and regulations regarding the City’s
responsibility under federal and state laws and develop procedures to ensure its benefit programs are in
good legal standing.
Research and advise the City regarding legal issues; represent the City in legal matters as appropriate, in
partnership with the City attorney.
D. Employee Communications & Claims Resolution Support
Provide custom communications, online tools, and other interactive services so participants understand
their employee benefits and their value thereof.
Develop and maintain an internal and external benefits website.
Provide updated benefit marketing materials such as fliers, brochures, etc.
Facilitate onsite benefit education sessions quarterly and office hours to assist with employees
understanding their benefits
City of Tukwila RFP
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Provide ongoing support, reporting, etc. for Healthcare Committee. Present information to Executive
team, Healthcare Committee, City Council, and other internal partners as needed.
Provide employee assistance for claims resolution through a Benefit Advocate service.
Coordinate with City representatives on employee relations issues concerning group insurance and
benefit programs.
E. Annual Renewals
Represent the City in negotiations with carriers on all issues, including those related to premiums, benefit
levels, plan design and special terms and conditions.
Provide funding rates for renewal year for active employees, retirees, and COBRA participants.
Prepare Requests for Proposals (RFP’s) for City benefit plans, including alternative funding arrangements.
This includes evaluating the responses and recommending changes to the City based on the RFP findings.
Develop Summaries of Benefits and Coverage (SBC)
Assist with preparation of Summary Plan Descriptions (SPD)
Conduct annual competitive bidding for stop loss and present renewal options.
Act as an advocate of the employees and City in resolving difficult claims and administrative problems