Agenda 06/26/2018 Item #16E206/26/2018
EXECUTIVE SUMMARY
Recommendation to award Group Vision insurance to Vision Service Plan (VSP) for a four-year
period effective January 1, 2019, in the estimated annual amount of $54,566.
OBJECTIVE: To continue to provide a core County paid group vision plan and offer a new voluntary
buy-up option to employees and their eligible dependents as part of a comprehensive, competitive group
benefits program.
CONSIDERATIONS: The Board of Commissioners through the Risk Management Division
administers the group benefits program for the County Manager’s agency and participating Constitutional
Officers. A core group vision plan is offered as part of the program. Coverage is provided under a PPO
arrangement with a $10 co-pay for exams and a discount for frames and lenses. Vision Service Plan is the
current carrier.
In anticipation of the January 1, 2019 renewal of policy number 30036242 (County’s #13 -6041), staff
directed the County’s contracted benefits broker, Willis Towers Watson, to seek proposals from interested
carriers. Willis Towers Watson performed an analysis of each carrier’s proposal to review price;
multiple year price guarantees; coverage terms; provider network size and composition; out of network
reimbursement rates; and voluntary buy-up options.
After reviewing each quotation against the measures noted above, the list was narrowed to the following
three carriers who offered the lowest cost and best possible terms for the core program, which is fully
paid by the County.
Carrier Total Annual Price
VSP $54,566
NVA $52,961
EyeMed $51,891
All carriers offered a four-year rate guarantee. Willis Towers Watson negotiated a favorable renewal with
VSP, which is 10% less than the current rates.
Although the cost of NVA and EyeMed’s proposals were slightly less than VSP’s rates, the networks did
not include certain highly utilized providers under the current plan. This would require about 300
members to change eye doctors. Staff believes that the disruption to members does not justify a modest
annual savings of $2,675.
Staff also reviewed a buy-up option to allow members to expand coverage for frames, lenses and contacts.
In addition, the VSP plan offered the following advantages:
No minimum participation requirement
More generous coverage for eye glass lenses
More generous coverage for elective contact lenses
Based on the above, staff recommends the selection of VSP, for both the core County paid and employee
paid buy-up coverages. The current provider is VSP and there are no other changes to the terms and
conditions of the program. The current policy number 30036242 (County’s #13-6041) will be renewed
for a four-year period effective January 1, 2019 and includes the County paid core program as well as the
employee paid buy-up coverage.
06/26/2018
FISCAL IMPACT: The estimated annual cost of the core County paid coverage in 2019 will be
$54,566, based on 2,229 employees. This represents a reduction in cost of $6,152 over 2018. Coverage
commences on January 1, 2019. Sufficient funds are available within Fund 517, Group Health and Life
Insurance for this purchase.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority
vote for Board approval. -SRT
RECOMMENDATION: That the Board approve the purchase of Group Vision coverage from Vision
Service Plan, authorize the County Manager or his designee the authority to execute the attached renewal
letter (and any other required documents necessary to renew and commence coverage under policy
#30036242), which includes the County paid core program, as well as the employee paid buy-up
coverage, for a four-year period effective January 1, 2019.
Prepared by: Sonja L. Sweet, Group Benefits Manager, Risk Management
ATTACHMENT(S)
1. VSP Vision Care Letter and Marketing reviewed by Legal - Final (PDF)
06/26/2018
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.2
Doc ID: 5877
Item Summary: Recommendation to award Group Vision insurance to Vision Service Plan (VSP)
for a four-year period effective January 1, 2019, in the estimated annual amount of $54,566.
Meeting Date: 06/26/2018
Prepared by:
Title: Benefits Analyst – Risk Management
Name: Sonja Sweet
06/07/2018 4:15 PM
Submitted by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
06/07/2018 4:15 PM
Approved By:
Review:
Procurement Services Sandra Herrera Additional Reviewer Completed 06/07/2018 4:44 PM
Risk Management Jeff Walker Additional Reviewer Completed 06/07/2018 4:45 PM
Procurement Services Ted Coyman Additional Reviewer Completed 06/07/2018 6:21 PM
Administrative Services Department Paula Brethauer Level 1 Division Reviewer Completed 06/08/2018 3:04 PM
Procurement Services Ted Coyman Level 1 Purchasing Gatekeeper Completed 06/08/2018 5:51 PM
Administrative Services Department Len Price Level 2 Division Administrator Review Completed 06/12/2018 11:50 AM
County Attorney's Office Scott Teach Level 2 Attorney Review Completed 06/14/2018 2:52 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/14/2018 3:16 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/14/2018 4:29 PM
Budget and Management Office Mark Isackson Additional Reviewer Completed 06/15/2018 10:30 AM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/15/2018 3:35 PM
Board of County Commissioners MaryJo Brock Meeting Pending 06/26/2018 9:00 AM
VS
Vision care for life
June 11, 2018
Lisa Whiteman
Willis Towers Watson
Via email
RE: COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS — January 1, 2019 Vision Plan Renewal
Dear Lisa:
Mark Tafuri
Market Director
Pursuant to your request, I am providing renewal information for Collier County Board of County Commissioners, effective January 1,
2019. 2,217 employees are currently covered under VSP's Choice Exam Plus Plan (exam every 12 months) with$10 exam copay. The
current rates for this coverage are $2.27.
VSP has reviewed the current plan and developed rates based on the experience of the program over the recent contract term. VSP
considers many factors when determining rates including, claim cost, utilization, claim frequency and trend. As a result of this analysis,
our underwriters have calculated the renewal rates described below and guaranteed them for 48 months.
Plan Enhancements (Buy Up Option): In addition, to the renewal, we have created a Buy Up Plan Option to offer the eligible
employees of Collier County the opportunity to purchase a full service vision program from VSP which includes Lenses and Frames or
Contacts every 12 months as described below. All Rates are guaranteed for a term of 48 months.
Standard Progressives: VSP Vision Care continues to lead the industry in plan design innovation and as a result, raises the bar on
what is considered standard in quality eyecare. Effective July 1, 2018, all standard progressive lenses ("K" category progressives) will be
covered in full for all current fully -insured clients /members. Additionally, Ethos, a new digital progressive lens that leverages new
technology for better precision and a faster adjustment period, will be included. This is a global enhancement to VSP's program and
there will be no impact to the rates.
4521 PGA Blvd., #161, Palm Beach Gardens, FL 33418 1 P: 561.410.0394 1 F: 404.816.1914 1 vsp.com
Current Contract Plan Rates
Group Name:
Collier County Board of County Commissioners
Group Number:
30036242
Plans:
Choice Exam Plus
Plan Frequency:
Exam every 12 months
Co -payments:
$10 Exam
Current Rates:
$2.27
Renewal Current Exam Plus
Renewal Period:
January 1, 2019 — December 31, 2022 (48 months)
Plans:
Choice Exam Plus
Plan Frequency:
Exam every 12 months
Co -payments:
$10 Exam
Renewal Rates w/o commission:
$2.04
4521 PGA Blvd., #161, Palm Beach Gardens, FL 33418 1 P: 561.410.0394 1 F: 404.816.1914 1 vsp.com
Combined Plans
Exam (County Paid) with Buy Up wlCommission
Exam
Renewal Period:
Plans:
Plan Frequency:
Co -payments:
Renewal Rates w/o commission:
Buy Up
Plans:
Plan Frequency:
Co -payments:
Contact (fitting and exam) copay:
Frame Allowance:
Elective Contact Lenses:
Rates Include commission:
January 1, 2019 — December 31, 2022 (48 months)
Choice Exam Plus
Exam every 12 months
$10 Exam
$2.04
Choice Plan
Lens& Frames or Contacts every 12 months
$10 Materials
Not to exceed $60
$150
$150
$7.331$19.93
Please check the renewal options.-
F]
ptions:❑ Current Plan Renewal Exam
❑ Buy Up Options with Lens& Frames or Contacts every 12 months
Please have the appropriate group representative sign the renewal below and email a copy to Fabian Whipple @
Fabian.Whipple@vsp.com.
We appreciate your business and value our relationship with your organization.
Thank you,
Mark Tafud
Ifw
Collier County Board of County Commissioners:
Authorized Group Representative Signature
Edward F. Coyman, Jr., Director of Procurement Services
Approved as to Form and Legality:
Scott R. Teach
Deputy County Attorney
7
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Collier County Government
Request for Proposal
Vision
March 2018
Wil I isTowers Watson 1u1'14,11
Collier County Government
Request for Proposal
•" •_•1'
Section1 : Introduction.........................................................................................................................1
Section 2 : General Information............................................................................................................2
Section 3 : Requirements.......................................................................................................................3
Section 1: Introduction
Willis Towers Watson, acting on behalf of our client, the Collier County Government (CCG), is
requesting a proposal for vision insurance.
Your proposal must conform to the conditions set forth in this RFP. Any deviations from the requested
information should be clearly explained and noted on the questionnaire included with this RFP.
Questions
Any questions concerning the content of these requirements must be presented to the following Willis
Towers Watson team members in writing via email by 4:00 p.m. on March 29, 2018. Any additional
information or clarifications that are provided to one respondent will be provided to all respondents.
Lisa Whiteman
Senior Placement Specialist
Willis Towers Watson
262 780 3920
Tisa.Whiteman()WillisTowersWatson.com
Additional Contacts
Douglas Ley
Senior Vice President/Director
262 780 3340
Douglas.ley@willistowerswatson.com
Jill Goehrig
262 780 3284
Jill.goehrig@willistowerswatson.com
Please note that the client is not to be contacted under any circumstances. Any contact with
employees or elected officials concerning this RFP will result in your response being
disqualified.
Bid Schedule
The dates set forth below are for informational purposes only. All dates are tentative and subject to
change.
March 2018 WillisTowers Watson 1.14'111
t 1��Willis Towers Watson Confidential
Collier County Government
Request for Proposal
Issue RFP
Questions
Responses Due
Finalist Interviews
Program implemented
Proposal Format
March 23, 2018
March 29 2018
April 5, 2018
April 26 or 27, 2018
January 1, 2019
Your proposal must include the following by the stated due date:
■ Electronic (e-mail) copy of the following:
• Proposed Rates/Benefit Offering — your quote
M Questionnaire
These will be interpreted as your company's proposal. Therefore, it is important that any exceptions,
deviations, etc, are noted on these forms.
2
All information contained in this Request for Proposal is confidential and proprietary. This information
must be used solely for the purpose of responding to Willis Towers Watson' Request for Proposal.
As noted, all proposals are due in the office of Willis Towers Watson by 4:30 p.m. CT on April 5, 2018.
The proposal is binding during the 180 day period following the due date. A proposal may not be
withdrawn or changed during this period without written agreement from Willis Towers Watson.
Submit your proposal to Willis Towers Watson via electronic format:
Lisa Whiteman
Senior Placement Specialist
Willis Towers Watson
262-780-3920
lisa.Whiteman a WillisTowersWatson.com
Thank you for considering this request.
Profile
Collier County is located on southwest Florida's Paradise Coast, on the Gulf of Mexico. The county,
including the communities of Naples, Marco Island, Everglades City and Immokalee, is famous for its
pristine beaches, magnificent sunsets, parks, art galleries, theaters, museums, universities and an
abundance of championship golf courses. Collier County is the western gateway to the world famous
Everglades. The Everglades and Big Cypress National Parks cover two thirds of the county's total land
March 2018 WillisTowers Watson Id'1'llall
Willis Towers Watson Confidential w
Collier County Government
Request for Proposal
mass and are a nature lover's paradise. One of the largest geographical counties east of the
Mississippi River, the county encompasses more than 2,000 square miles.
The Collier County Board of County Commissioners, comprised of five members elected in the five
different districts of the county, serves as the governing body. The Board of County Commissioners
sets policy and appoints a county manager to carry out policy and oversee the county's day-to-day
operations.
Vision To be the best community in America to live, work and play.
Mission To deliver high quality, best -value, public services, programs, and facilities to meet
the needs of our residents, visitors, and businesses today and tomorrow.
Motto Exceeding expectations, every day!
Location
3299 Tamiami Trail East, Naples, FL
Website
htt ://www.rollier ov.net
Type
Public Company
Size
1,001-5,000 employees
Carrier Background
3
Currently, the CCG offers an employer paid vision discount plan to all employees. The CCG would like
to consider offering a full-service buy -up plan in addition on a 100% voluntary basis.
Your proposal should assume the following requirements:
C January 1, 2019 effective date.
In Match the current employer -paid plan's $10 exam copay and provide your standard discounts for
all other services.
■ Voluntary buy -up plan should include the following:
" $5/$10 Exam/Material copays for in -network benefits.
® 12/12/24 Frequency
® Rich allowances to help differentiate this plan from the discount -only plan
■ Provide a geo-access report based on the enclosed census.
■ The employer -paid, discount plan rates are to be net of commissions.
• Please include your standard schedule of commissions for the voluntary plan. Attach a copy of
the commission schedule to your proposal.
March 2018 WillisTowers Watson 1■1'1'1.1
Willis Towers Watson Confidential Fx"
Collier County Government
Request for Proposal
Please provide the following plan option:
Buy -up plan to offer contacts, lenses and frames in the same period (instead of contacts in
lieu of frames).
March 2018 WtlitsTowersWatson ImPPIA
Willis Towers Watson Confidential
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