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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 4521 PGA Blvd., #161, Palm Beach Gardens, FL 33418 i P. 561.410.0394 i P. 404.816.1914 1 vsp.com `z �f o a U w w 0 J W Q c � E <z Q a� r > U) 0 0 �Ml z' r U- r- w 0 z 0 w z u0 v� 8 f0 ƒ / 0 / U) 3 0 � z 2w 0 f ' : � ��) 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 T