RFP #16-1137-2CS
REQUEST FOR PROPOSAL
ANNUAL CONTRACT FOR FLEXIBLE SPENDING ACCOUNTS
CLAIMS ADMINISTRATION
COUNTY OF HENRICO, VIRGINIA
Questions & Answers
March 30, 2016
Q1.Does County of Henrico work with an employee benefits consultant?
A1. Yes, the County works with Wells Fargo Insurance Services.
Q2.Are there any specific reasons for marketing at this time?
A2.Yes, our contract with our current vendor expires on December 31, 2016.
Q3.Who are the medical, dental, vision carriers for County of Henrico?
A3.Our medical carrier is Anthem and our dental carrier is Delta Dental. We do not have a separate vision carrier.
Q4.Is County of Henrico utilizing any platforms for payroll?
A4.The County uses Oracle HRMS for payroll.
Q5.Is County of Henrico utilizing any technology platforms for HRIS, enrollment, or ben admin?
A5.The County uses Oracle for HR management including Oracle Advanced Benefits (OAB) for benefits administration. Currently, employees enroll online through Oracle Employee Direct Access during open enrollment; however, new hires and employees making mid-year changes currently enroll by paper form.
Q6.Is County of Henrico offering a HDHP/HSA health plan currently or considering offering HDHP/HSA in the future?
A6.The County has offered a HDHP/HSA plan optionsince January 2015.
Q7.Section II.A.1.a. Source of Funds - Employee pretax contribution (no employer funds). Can you give a brief overview of your current funding and/or pre-funding arrangement for the FSA and DCFSA?
A7. The County promptly sends employee payroll deduction amounts to our vendor after each payroll. Currently, the County does not pre-fund the health care FSA at the beginning of the Plan year. DCFSA must be funded as payroll deductions occur and are not pre-funded.
Q8.Does the County have an account set up for this currently?
A8.Because the County does not have a pre-funding arrangement, there is no account set up for this.
Q9.Is it safe to assume that there are no advanced funding expectations of the administrator chosen?
A9. The County would like to consider vendor options that do not require the County to pre-fund claims early in the Plan year.
Q10.If there are advanced funding expectations of the administrator, please describe in detail.
A10.The County would like vendors to describe any options for administering January claims prior to receiving funds from the first payroll in January. For example, the first employee contributions in 2017 would be sent to the vendor in the second week of January 2017.
Q11.Section II. A.1.k. Debit Cards – Debit cards are provided to all health care FSA participants and, upon participant request, to dependent care FSA participants. The Treasury Department and Internal Revenue Service regulations stipulate reimbursement is limited to what is available in the account and can only be made after services are rendered. With that said, to comply with the regulations, it is our best practice (and an industry wide best practice) to require documentation for dependent care claims and not accept payment by a payment card. Participants can easily submit documentation with our CYC Mobile application or online upload on the Participant Portal. Alternatively, participants may send in documentation with a cover sheet by fax or U.S. mail. These documentation submissions are read electronically and attached to the participant’s record. The claims are then automatically assigned to our adjudicators by our system, and we will review documentation ensuring:
-The expense is eligible based on the plan design.
-The expense was incurred during the account plan year.
-Sufficient documentation has been provided by the participant which includes:
a. -Date of service
b. -Provider
c. -Amount of funds requested
d. -Type of expense
If the Treasury and IRS were to change the regulations, our industry-leading technology would allow us to accept Dependent Care Claims by payment card.
Please confirm that not offering a payment card to Dependent Care participants will not disqualify our bid.
A11. Confirmed.
Q12.Section II. A. 1. d. Carryover Provision – Unused health care account funds up to $500 at the end of the plan year will be carried over into the next plan year. However, employees that enroll in the County’s high deductible/HSA plan for the next plan year will not be eligible to carryover unused funds.
Does the County currently offer an HDHP with HSA?
A12. Yes. The County has offered a HDHP with HSA since January 2015.
Q13.If so, provide details on that plan (administrator, fees, participant level, Limited Purpose FSA also offered, etc.)?
A13.Our HDHP/HSA plan is the Lumenos HSA plan is administered by Anthem. The deductible is $3,000/$6,000 (combined with out-of-network). The plan pays 100% of most expenses and standard prescription drug copays begin after this deductible is met. The out-of-pocket maximum is $4,000/$8,000. The County contributes to an enrolled employee’s HSA: $1200 annually for employee only and $2400 for employee with any dependent coverage; these employer contributions are prorated and provided along with payroll throughout the year. Currently, 153 employees are enrolled in the Lumenos HSA plan. The County does not offer a Limited Purpose FSA.
Q14. Is it up for bid now; and if not, will it be in the future?
A14.Currently, the County is not in a procurement process for a TPA for our self-funded health plan. The County’s current TPA contract for our health plan will end on December 31, 2017 and we will procure a new contract by that time.
Q15.Section II.A.6: “Provide up to 8 employee open enrollment sessions annually”. Provide more details on the logistics and the expectations of these enrollment sessions.
A15.Employee attendance at these sessions is voluntary and family members are welcome to attend. In a large room, we provide a “station” of tables and chairs for each of our benefit vendors who will be available to describe the benefit offered, provide informational materials and answer employee questions. Typically, one session per day may be held from 1 p.m. – 6 p.m. Sessions are scheduled in a series of two consecutive days. For example, on one day a session is held at our western location and on the next day, a session is held at our eastern location. Each year, we determine how many sessions to hold; the number may be fewer than eight and may vary from year to year based on the complexity of benefit changes overall.
Q16.As an example, will these be over 8 days or are these 4 back to back sessions over 2 days?
A16.Please see the answer to Question #15.
Q17.What percentage of the eligible employee population does the County expect to attend the sessions?
A17.Annual attendance will vary depending on the complexity of benefit changes overall. An estimate of typical attendance might range from 300 to 700.
Q18.What additional ways do you communicate and educate benefits to your employees that you have found effective?
A18Employees use our benefits Web site as the go-to resource for the latest benefits information including benefit brochures, FAQs, forms and links to vendor resources.All benefit options for our annual open enrollment period are posted on our site as well. We use broadcast emails, printed benefit booklets (Schools) and an electronic newsletter (General Government) for specific communication needs. Vendor customer service is also an important educational resource.
Q19.Is increasing plan participation important?
A19. Yes, we would like to increase participation of well-informed employees.
Q20.Would the County be open to additional methods of communications to increase understanding and participation assuming there isn’t an additional cost?
A20. The County would consider additional communication methods.
Q21.Section VII. 6. b. Provide a sample of your Explanation of Benefits (EOB) statement and management reports with your proposal. Does the County have the ability to customize the EOB and at what cost?
A21. Our use of “EOB” refers to any statement of benefits/claims processed, including a statement and explanation of FSA claim payment or denial. A vendor might use another name for this type of participant communication.
Q22.In conjunction with the subject RFP would the county be able to provide the following information?
- Experience
- Plan and rate history
- Current plan design
- Census with gender, DOB, occupation, and salary
A22. Please see the Request for Proposal for the current plan design. In addition, the current design includes a claims run-off period from January 1 – March 31following the end of each Plan Year. Please see the Request for Proposal for the number of eligible employees and participation numbers. Included in these participation numbers, there are 55 General Government and 96 Schools employees who have both HCFSA and DCFSA accounts.
Q23.Page 3, Item E states “the County does not prefund claims at the beginning of the plan year”, is this true for Debit Card transactions that occur before payroll is received? Would an otherwise qualified TPA which required pre-funding of 4-5% of total elections be disqualified from consideration?
A23:This would not disqualify a firm from consideration.
Q24.Should our response include Henrico offering a limited FSA to work with the HSA for dental and vision expenses?
A24:No, the County is not seeking a limited FSA. Dental and vision expenses are reimbursed through the HCFSA.
Q25.Does Navia Benefit Solutions currently charge an annual renewal fee to Henrico County?
A25:No, Henrico is not charged an annual renewal fee.
Q26.Is there currently paper notification for required substantiation (or only email notification)?
A26:Paper notification is used if an email address is not available or accessible.
Q27.Will participant email addresses be provided?
A27:Participant email addresses can be provided; however, some employees may not have an accessible County email address.
Q28.Page 3, Item G, please clarify the comment “Participants can request debit cards for dependent care FSAs by paper sent directly to the vendor.” Are you stating that the participant may use the debit card for dependent care FSA transactions or are you stating that participant may submit paper claims for dependent care FSA expenses?
A28:This means that a participant who wishes to use a debit card for dependent care FSAs transactions must request a debit card. To request the debit card, the participant can submit a paper request form to the vendor.
Q29.Is direct deposit reimbursement optional, as opposed to mandatory direct deposit reimbursement for manual claims?
A29:Direct deposit is optional.
Q30.Does Navia currently provide a mobile solution?
A31. Yes.
Q31.Would Henrico entertain ACH debit of funds in addition to wire transfer?
A31.Henrico may consider ACH debit of funds at a later date.
Q32.Item 6 Page 8 – Are these employee meetings (up to 8) in addition to or in place of the informational meetings on page 4 Item J?
A32.The meetings described in Item 4 and Item 6 both refer to the same set of meetings that provide employees with an opportunity to talk with benefit vendors and have their questions answered.
Q33.Please define the expected date for a final decision. Also, what is the allowable time period for setup and testing prior to going live?
A33.We expect to have a final decision by July if not before. We would likely begin implementation by August for a January 1 effective date.
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