HomeMy WebLinkAboutExhibit8Benefit and Capabilities Outline
Be Prepared for:
City of Miami
Prepared by:
Cathy Krumpos
CIGNA Healthcare
January, 2008
Valid for Effective date of July 1, 2008
Unless extended in writing by CIGNA HealthCare
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Executive Summary
City of Miami RFP & Questionnaire
CIGNA HealthCare Voluntary Limited -Benefit Plans
Starbridge Choices
Enrollment Options
Enrollment Strategy
Starbridge Choices Website
Claims Administration/Customer Service
Plan Administration
Addendum
Executive Summary
As the incumbent carrier, CIGNA Voluntary is pleased to present this renewal opportunity to
the City of Miami. We understand that as an employer, you want a benefit program that
provides access to quality health care for your part time and temporary employees and their
families, yet respects everyone's need to manage expenses.
In this proposal we describe the products and services you requested, as well as the value of
these products and services. We want you to have a clear understanding of how CIGNA
Voluntary can continue to provide health care advantages for your employees.
Starbridge Choices is a voluntary limited -benefit medical plan that provides part-time and
hourly employees with coverage to help with minor medical expenses. It requires no
employer contribution and has no minimum participation requirements.
Starbridge Choices offers:
Provider Networks: Starbridge utilizes the Beech Street network for Proposed Option 1.
Starbridge will utilize the CIGNA PPO network for Starbridge Choices Proposed Option 2.
The City of Miami's employees have the best of both worlds; the opportunity to receive up-
front network discounts by choosing a network provider and the freedom to choose any
provider with no out -of -network penalty.
Affordability: Starbridge plans are designed to cost only one and a half to two hour's pay
per week. Experience has shown that for hourly employees the cost of the plan is the most
important factor in purchasing insurance. The ability to customize your plan designs around
City of Miami's average hourly wage provides the flexibility needed to optimize participation.
Plan Choices: Our multi -level medical plans give your employees the ability to choose a
plan that best fits their day-to-day medical and financial needs. Additionally, supplemental
benefits are available on a stand-alone basis. Employees do not need to select a medical
plan in order to participate in supplemental plans. This makes the program attractive to more
employees, thereby increasing employee satisfaction.
Simplicity: Starbridge was designed to provide coverage for the day-to-day medical
expenses most often incurred. The benefits are straight forward and easy to understand.
Insured employees receive access to healthcare with low co -payments and low deductibles.
Employee Assistance: The CIGNA 24-Hour Employee Assistance Program is available to
City of Miami's employees. The Health Information Line is always open to help direct
employees to appropriate sources of medical care. Your employees can call anytime for
helpful answers and reliable information on a wide range of health -related topics.
Additionally, up to 3 face-to-face visits with local counselors are also provided. This benefit is
especially valuable to first time insured employees as many of them do not have a primary
care physician. The access to medical assistance and advice 24/7 gives your insured
employees additional peace -of -mind.
Executive Summary
Healthy Rewards: Healthy Rewards provides members with access to a variety of health
and wellness products and services arranged by CIGNA affiliates. These are programs and
services often not covered by many traditional benefit plans. Program features include
discounts on vision care, weight management, tobacco cessation, fitness club memberships,
magazines and much more. Healthy Rewards discounts include brand names, such as
Weight Watchers, Lasik Vision Correction, Jenny Craig and more. As a discount program,
there are no claims to file, no enrollment forms or paperwork. The choice to use Healthy
Rewards is completely up to your employees.
Online Tools: Our comprehensive online tools provide employees access to information and
advice that will help them save money and stretch their benefit dollars. Online capabilities
enable them to
• Locate participating physicians
• Research medical conditions and treatments
• View their medical plan and benefit information
• Check claims status and history
Ease of Administration: The CIGNA Voluntary years of experience has produced an
infrastructure that provides for smooth implementation of the programs and ongoing
administrative support that ensures that administration for our clients is kept to a minimum. A
2005 client survey indicates that 76% of our large national clients spend less than 5 hours per
week on Starbridge administration attesting to the ease of administration of our programs.
Member Advocacy: Many Starbridge insureds are new to medical insurance. Often their
only experience with the medical system has been trips to the Emergency Room. Starbridge
helps teach your employees the most cost-effective way to seek treatment.
We teach insureds:
• The Value of using network providers (Geo-coded provider lists, steerage
activities)
• How to find a network provider and schedule an appointment
• The benefit of using the Web portal and CIGNA 24-hour Employee Assistance
Program
• Why they should avoid the ER if it's not an emergency
These messages are facilitated by our Customer Services teams, SPDs, and other member
collateral. Starbridge helps insureds manage their out-of-pocket costs by avoiding
unnecessary ER visits, utilizing network providers, and seeking preventative care.
Certifications
Legal Name of Firm:
CIGNA Voluntary
Entity Type: Partnership, Sole Proprietorship, Corporation, etc.
Corporation
Address, City, State, Zip
2222 West Dunlap Avenue, Suite 350, Phoenix, AZ 85021
Office Location: City of Miami, Miami -Dade County, or Other
CIGNA Voluntary, 2222 West Dunlap Avenue, Suite 350, Phoenix, AZ 85021
Occupational License Number:
N/A
Occupational License Issuing Agency:
N/A
Occupational License Expiration Date:
N/A
Respondent certifies that (s) he has read and understood the provisions of City of Miami
Ordinance No. 10032 (Section 18-105 of the City Code) pertaining to the implementation of a
"First Source Hiring Agreement.": (Yes or No)
N/A
Do you expect to create new positions in your company in the event your company was awarded
a Contract by the City? (Yes or No)
No, since the City of Miami is an existingcustomer, no additional positions are expected.
In the event your answer to question above is yes, how many new positions would you create to
perform this work?
N/A
Please list the title, rate of pay, summary of duties, number of positions, and expected length or
duration of all new positions which might be created as a result of this award of a Contract.
N/A
Minority/Women Business Affairs Registration Status: Hispanic, Female, Black or None
CIGNA has dedicated resources to promote our Supplier Diversity Program, with the goal
of increasing our Minority and Women Business Owned Enterprises (MBE/WBE) spends
from the current five percent to six percent over the next year.
Will Subcontractor(s) be used? (Yes or No)
Yes. Medlmpact is used for our prescription benefit.
Does the City of Miami Living Wage Ordinance apply to this formal solicitation? ( See Section
1.40 of the General Terms and Conditions) (Yes or No)
N/A
Service Total Contract Amount (which includes base term and renewal options):
N/A
Is this service contract a citywide contract? (Yes or No)
CIGNA Voluntary currently administers the City of Miami's contract. The City has
designated the contract to cover all Part-Time/Temporary Employees are eligible,
excluding seasonal & board members, after 90 continuous days of employment.
If the above answer is no, please indicate the name of the city (end user) department that your
contract will serve:
Provide brief description of the project or service to be provided
Limited benefit medical insurance to the City of Miami's part time and temporary
employees (excluding seasonal and board members) after 90 days of continuous service
I/We hereby state compliance with the City of Miami Living Wage Ordinance, Section 18-556
through Section 18-559 as summarized in Section 1.40 of the General Terms and Conditions?
N/A
Reference — CIGNA Voluntary already partners with the City of Miami and has since 2004.
CIGNA Voluntary is committed to continuing our partnership with the City. We are
extremely excited to be a part of CIGNA HealthCare and are already reaping the benefit of
synergies from CIGNA to increase our offerings for the City of Miami.
Subcontractor (If Applicable)- Company Name
Medlmpact - PBM
Subcontractor (If Applicable)- Address
10680 Treena Street
Subcontractor (If Applicable)- City, State, Zip
San Diego, CA 92131
Include Current National Committee for Quality Assurance (NCQA) Accreditation Rating of
Commendable or higher for Commercial HMO/POS business combined (Yes/No)
CIGNA completed its first NCOA PPO/OAP survey in 4th quarter 2007—preparations and
the submission process are completed. The decision should be received in early in 2008.
CIGNA has a history of very strong results on NCOA surveys and expects the same on the
PPO survey.
Include AM Best rating of A or A+ and financial size category of X (ten) or higher and State of
Florida Department of Insurance letter stating you are meeting current State of Florida Reserve
Factors.
A.M Best
Date Rating
December 2006
Fitch, Inc.
March 2007
A+
Moody's
February 2007
A2
Standard & Poor's
March 2007
A
3.3.1. Provide various Levels of the Plan for the employee and/or family, based upon cost and
service(s) offered, and allow the part-time / temporary employee(s) make a choice based upon
Level of Service and cost, that which is in his/her best interest.
See Plan Design portion of the proposal.
3.3.2. Offer no waiting period or be required to provide medical evidence of insurability prior to
enrollment.
The City of Miami has specified a 90 day waiting period in its current contract with CIGNA
Voluntary. The City determines eligibility requirements and can set the business rules
regarding the waiting period. Starbridge plans do not require a waiting period for
coverage. There is no medical evidence required prior to enrollment because these
are group plans.
3.3.3. Require no minimum number of hours worked for eligibility or minimum number of
employee participation.
The City of Miami determines eligibility requirements and can set the business rules
regarding the hours worked.
3.3.4. Provide low health premiums to each enrolled part-time / temporary City employee.
Starbridge plans are impacted by age, gender and turnover. Rates are also adjusted for
plan design.
3.3.5. Provide a "self -bill" Program instead of billing statements.
Employers follow the "self -bill" approach, meaning the employer reports to CIGNA
Voluntary the employees on each plan and how much was deducted by pay period.
Payments can be made either by check or via ACH transfer. Since premiums are paid in
arrears, the employer submits to CIGNA Voluntary only the amount that was deducted
during the previous payroll cycle as well as any employer contribution amounts.
3.3.6. Provide free COBRA Notification and premium collection.
CIGNA Voluntary handles all of the COBRA and HIPAA administration for the Starbridge
plans. This includes the pre and post termination notifications, billing and premium
collection. These services are provided at no additional cost. CIGNA Voluntary accepts
and issues Certificates of Creditable Coverage for the Starbridge plans.
3.3.7. Provide an Enrollment Center for direct communication to eligible employees.
The Enrollment Center's inbound call center is staffed with licensed, bilingual Benefit
Specialists who can answer your employees' questions and work with them to determine
which coverage is best suited for their individual needs. The additional service takes the
burden off your benefit staff and site managers in answering questions about the plans.
3.3.8. Provide all premium/fee accounting services necessary to administer the Plan, and any
banking charges that may apply, in addition to any other related costs to administer said Plan.
All costs are included in the premium.
3.3.9. Provide booklets or booklet certificates, approved by the City, in sufficient quantity for all
potential Plan participants and reprint as required by the City. Booklets or certificates are to be
sent directly to insured's homes.
Summary Plan Description books are created based upon the individual insured's plan
choice(s) and are mailed directly to each insured's home.
3.3.10. Provide applicable network directories in sufficient quantity for all potential Plan
participants and reprint as required by the City. Directories are to be sent to insured's homes
during initial enrollment period and at applicable periods thereafter.
CIGNA Voluntary does not provide hardcopies of the Provider Directory. Since both the
Beech Street network and the CIGNA network are national PPO networks, the size of a
national PPO network directory makes it prohibitive to produce one national network
directory. This information can be obtained through our website. The Getting Started
packet also will include a Geo Report of 10 providers in the insureds area sent with the ID
Cards. CIGNA Voluntary's Customer Service line is also equipped to assist any insured in
locating a participating provider.
Medical - The City of Miami employees currently enrolled in the Starbridge plan (Option 1)
utilize the Beech Street network, a Concentra Company.
The alternative (Option 2) Starbridge plans included in this proposal use the National CIGNA
PPO Network for your members.
Dental — The supplemental dental plan included in this proposal utilizes the CIGNA Dental
Network. This program provides reimbursment on 45 of the most common preventive and
basic dental procedures. Enrolled members will receive discounts on an additional 200+
dental procedures when they visit a participating CIGNA Dental network provider.
Vision — A City of Miami employee who enrolls in the Dental Plan also has Vision Discount
Plan in Vision One discount network. Vision One discount network provides discounts on
frames, lenses and exams.
3.3.11. Provide appropriate I.D. Cards as specified and approved by the City.
Once enrolled, employees will receive a geo-coded Getting Started Packet mailed to their
residence that includes a list of ten in -Network Primary Care Physicians located in their
area as well as confirmation of the benefits in which they are enrolled, their ID cards and
EAP/Nurseline information.
3.3.12. Provide all related enrollment materials to insured's homes.
Currently CIGNA Voluntary sends pre -enrollment material to the City of Miami to distribute
to eligible employees. This is our standard practice.
Insured employees will receive a geo-coded Getting Started Packet mailed to their
residence that includes a list of ten in -Network Primary Care Physicians located in their
area as well as confirmation of the benefits in which they are enrolled, their ID cards and
EAP/Nurseline information. This is followed by a Summary Plan Description booklet that
that is created for the insured based upon the plan(s) chosen.
3.3.13. Provide an 800 phone number as well as dedicated representatives (for long distance
calls) for claims service and plan information and related customer services.
A single total free number is provided to all eligible employees and permits the calls to be
answered by a designated team of Customer Service Representatives skilled for this
product. CIGNA Voluntary has bi-lingual CSR's and utilizes the AT&T language line for
further assistance.
3.3.14. Provide technical/sales staff, as may be required, for: initial enrollment, open enrollment,
claim resolution and plan information and interpretation and costing of alternative benefits from
time to time.
Cathy Krumpos is the Client Manager for the City of Miami. Cathy is based in Arizona and
has over 30 years experience in the health care industry. She has been with Star HRG
since 1999..She will continue to oversee the account management process for the City of
Miami and is responsible for being engaged in strategic account oversight. She will also
continue to be the point of contact for plan information, interpretation and costing of
alternative benefits.
Lara Perez is the Client Specialist who will assist Cathy in the day to day interface with
City of Miami.
Rose Lopez is the File Analyst who is responsible for the processing of enrollment files,
as well as maintenance of the ongoing eligibility.
Claims Resolution - CIGNA Voluntary provides a special Client Service Unit for our HR
professionals. This unit is staffed by supervisory level employees who work only with our
clients' HR Departments to assist with eligibility questions or other issues regarding their
employees.
3.3.15. Provide EOBs which are to be sent to the employee's home.
An Explanation of Benefit (EOB) is sent to the member and/or provider whenever a claim is
processed. A description of that claim's status is provided on the EOB.
3.3.16. Provide the City and its agent with paid claims and premium reports on a quarterly basis
and with a complete financial analysis for the plan year within four (4) months after the end of the
Plan year.
Reports regarding the turnaround time, member numbers, utilization, and claims per
member are available by request on a quarterly basis.
3.3.17. Provide complete COBRA/HIPAA administration, including certification of coverage, under
the City's plans according to the applicable Federal regulations.
CIGNA Voluntary will continue to handle the COBRA/HIPAA administration for the City of
Miami. Once we receive termination information for an insured we will then send out the
COBRA notification and HIPAA certificates. If the insured elects COBRA they will work
directly with CIGNA Voluntary.
3.3.18. Provide a minimum guarantee premium cost per part-time and temporary employee for an
initial period of eighteen (18) months through December 31, 2009, followed by a minimum
guarantee premium cost per part-time and temporary employee for each annual twelve (12)
month renewal period.
Rates reflected in the proposal are for 18 months through December 31s`, 2009.
3.3.19. Provide upon request, City's logo to appear on various printed materials. Successful
Proposer must agree to do this at no additional cost and must ensure that logo placement and
color requirements are met, as applicable.
Company logos can be reflected on various enrollment communication pieces at no
additional cost.
3.3.20. Provide an electronic enrollment option.
CIGNA Voluntary offers flexible enrollment options depending on the needs and
capabilities of City of Miami. General options include:
• THE CIGNA Voluntary On-Line/Web Enrollment (Available only for the 170 Series
Plan)
• The CIGNA Voluntary Interactive Voice Response System (IVR)
• The CIGNA Voluntary Enrollment Center
• Paper Enrollment Forms
The CIGNA Voluntary Web enrollment process is available to further meet the employees'
needs. The Web enrollment process will provide employees with answers to most all of
their benefit questions.
The CIGNA Voluntary state-of-the-art IVR system for telephonic enrollments provides
employees a quick and easy enrollment experience 7 days a week, 24 hours a day.
Employees have the ability to speak with a Benefit Specialist during regular business
hours.
The Enrollment Center's inbound call center is staffed with licensed, bilingual Benefit
Specialists who can answer your employees' questions and work with them to determine
which coverage is best suited for their individual needs. The additional service takes the
burden off your benefit staff and site managers in answering questions about the plans.
3.4 Proposed Options
Proposers are to submit within its Proposal, responses based on each of the following: Census
data
(Exhibit A) and, Claims Experience data (Exhibit 8) are attached.
3.4.1. City of Miami spent $85,647.44 during Calendar Year 2006.
3.4.1.1. Part time employees working 35 hrs or Tess weekly.
(Approximately 187 employees working with the City as of the issuance of the RFP)
3.4.1.2. Temporary employees working 40 hours or more weekly.
(Approximately 221 employees working with the City as of the issuance of the RFP)
Description: Monthly Rate for Part -Time Employees Working 35 Hours or Less Weekly
Description: Monthly Rate for Temporary Employees Working 36 Hours or More Weekly
Option 1 - Monthly Medical Rates (128 series
Medical Plan Series
EE
EE+1
FAM
128
$41.17
$101.23
$152.88
148
$75.70
$186.77
$283.40
168
$115.61
$286.43
$435.02
Option 2 - Monthly Medical Rates (170 series
Medical Plan Series
EE
EE+1
FAM
170 Choices Standard
$44.20
$108.42
$163.80
171 Choices Standard
$84.93
$208.22
$314.47
172 Choices Standard
$130.26
$319.19
$482.08
4. Overall Qualifications and Experience
a) Describe the Proposer's organizational history and structure; years Proposer and/or its
partner(s), principal(s), officer(s) or owner(s) has been in business providing a similar service(s),
and indicate whether the City has previously awarded any contracts to the Proposer/firm.
CIGNA and its predecessor companies have a long history of supporting the health care
needs of Americans. Starting with the formation of Connecticut General Life Insurance
Company and Insurance Company of North America (INA) in 1792, we have more than 200
years of history.
In 1990, CIGNA became the largest investor -owned managed care organization in the
country and still concentrates on meeting customer needs for best -in -class health care
and employee benefit products and services. The rich and exciting history of CIGNA
reveals the foundation of experience that shapes our current products and business
strategies. Today, CIGNA companies comprise one of the nation's leading providers of
employee benefits, health care coverage, and insurance products to businesses and
individuals worldwide.
In 2006, CIGNA acquired Star HRG, one of the premier providers of health plans for non -
benefited hourly and part-time workers in the U.S. Star HRG was founded in 1989 and
developed rapidly into a well -established organization, offering insurance to more than
1,000 corporate clients, including several Fortune 500 companies. Their market -leading
products satisfy the basic, everyday medical needs of hourly employees, while helping our
clients to reduce turnover, improve recruiting, and stabilize expenses within their hourly
workforce. Star HRG's name was changed to CIGNA Healthcare Voluntary Limited -Benefit
Plans.
City of Miami is currently offering their Limited Benefit Plan through CIGNA Voluntary.
b) Provide a list of principals, owners or directors.
Robert H. Campbell
H. Edward Hanway
Isaiah Harris, Jr.
Jane E. Henney, M.D.
Peter N. Larson
Roman Martinez IV
James E. Rogers
Harold A. Wagner
Carol Cox Wait
Eric C. Wiseman
Donna F. Zarcone
William D. Zollars
c) Provide a verification letter from State of Florida, Department of Insurance, reflecting Proposer
is currently and properly authorized to conduct business in the State of Florida.
See attached
d) As indicated before, provide current NCQA Accreditation Letter for commercial/HMO/POS
combined business, and AM Best certificate, and State of Florida Department of Insurance letter,
stating you are meeting current Reserve Factors.
CIGNA Voluntary is not NCOA accredited.
e) Demonstrate your qualifications and other relevant experience in areas similar to the Scope of
Work, magnitude, and complexity identified within this RFP.
CIGNA Voluntary is currently administering the Group Health Benefits for City of Miami
Part -Time Temporary employees.
f) Provide a complete list of clients for which Proposer has provided a similar service(s) as
required in this RFP, particularly those of governmental entities, for whom similar services have
been performed during the past three (3) years. Include the name, address, name of contact, and
telephone number of each reference. The City reserves the right to contact any reference as part
of the evaluation process.
CIGNA Voluntary provides insurance for hourly and part time workers for over 1000 clients
as noted above. The City of Miami has been an existing customer since 2004.
g) Provide a complete list of the personnel, including the Account Representative and any sub -
consultants that will be assigned to handle the work to be performed for the City. Include a
resume describing their experience, training, certifications, and other relevant details.
Cathy Krumpos is the Client Manager for the City of Miami. Cathy is based in Arizona and
has over 30 years experience in the health care industry. She has been with Star HRG
since 1999. She will continue to oversee the account management process for the City of
Miami and is responsible for being engaged in strategic account oversight. She will also
continue to be the point of contact for plan information, interpretation and costing of
alternative benefits.
Lara Perez has been with CIGNA for the past 7 years. 4 years as File Analyst, and 3 years
as a Sales Assistant. She has worked with large accounts on our National Sales team.
Rose Lopez has been with CIGNA Voluntary for over four years, and has a total of five
year's experience in the healthcare insurance industry. Rose is focused on ensuring
member eligibility data is efficiently and accurately loaded to the CIGNA Voluntary claims
system.
h) Provide a minimum of one (1) Letter of Reference on letterhead from one of the entities
referenced in this proposal, particularly from a governmental entity of a similar size for whom
similar services have been performed.
The City of Miami has been an existing client since 2004.
5. Proposed Plan(s), Network, and Employee Cost(s)
a) Detail its overall Plan and its approach to provide a Health Benefit Plan for the City's part-time /
temporary employees.
See Plan Design and Enrollment Strategy in the proposal
b) Provide description of Levels of coverage and applicable premiums, prescription benefits, and
co -pays for each Level of Service proposed.
See Plan Design in the proposal.
c) Detail its Network, including hospitals, physicians, specialists, etc. in Miami -Dade, Broward,
Monroe and Palm Beach Counties.
See attached GEO Access Report.
d) Provide monthly cost, per part-time / temporary City employee, for each proposed Level of
Service. Proposed cost(s) must include each of the following:
See Plan Design in the proposal.
Exhibit A:
a) Part time employees working 35 hours or less per week.
(Approximately 187 employees currently working with the City as of the issuance of the RFP)
b) Temporary employees working 36 hours or more per week.
(Approximately 221 employees currently working with the City as of the issuance of the RFP)
6. Proposer's Ability and Capability to Provide Required Services
a) Describe the overall size of Proposer and include a description of how the Proposer intends to
staff this engagement. List the office from where the work for the City is to be performed, and
discuss any additional needs that might be requested of the City pursuant to the Scope of Work.
Customer Service for the City of Miami is administered in our Phoenix, AZ office, where
the CIGNA Voluntary team has easy access to the benefits and services for the City of
Miami through advanced claim and call systems.
CIGNA Voluntary
2222 West Dunlap Avenue, Suite 350
Phoenix, AZ 85032
CIGNA Voluntary has over 300 employees. No additional staffing or procedures will be
necessary as we are currently handing the administration for City of Miami
b) Provide copy of the most current audited or current unaudited Financial Statement, for the past
year.
See attached.,
c) Provide information as to any and all pending or previous lawsuits, including the disposition of
same, filed against the Proposer relating to similar services being sought within this RFP.
In an industry where lawsuits are commonplace, CIGNA receives an insignificant number
of lawsuits per year. Confidentiality concerns preclude further comment or description.