REQUEST FOR PROPOSAL
Solicitation No. 8004927
Employee Disability Insurance and Administrative
Services (STD, LTD and FMLA)
Specifications / Scope of Work in Word Format
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SPECIFICATIONS / SCOPE OF WORK
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INTRODUCTION / GENERAL OVERVIEW
1.1
The Dallas/Fort Worth International Airport Board (referred to as the Board) is owned by the City
of Dallas, Texas and the City of Fort Worth, Texas; as such, the Airport Board is a public entity
and political subdivision of the State of Texas. The Board’s Mission Statement is as follows:
“Dallas/Fort Worth International Airport will provide our customers with outstanding facilities and
services while expanding global access and economic benefits to those we serve.” Our primary
goal is to grow our domestic and international passenger and cargo businesses, and we
accomplish this by achieving four key results:
 Cost Competitive
 Customer Satisfaction
 Operational Excellence
 Employee Engagement
1.2
The Airport Board has an administrative Board of Directors, composed of twelve members, eleven
of whom are appointed by the city councils of the Airport Board’s Owner Cities. Seven (7) Board
members represent the City of Dallas. Four (4) Board members represent the City of Fort Worth.
One (1) non-voting Board position represents one of the Airport’s four neighboring cities from
Irving, Grapevine, Euless or Coppell, Texas. The Board is a semi-autonomous body charged with
governing Dallas/Fort Worth International Airport that may enter into contracts without approval of
the city councils, but the annual budget and specific ordinances do require city council approval.
Total expenditures to be incurred by the Airport Board in any fiscal year (October 1 through
September 30) are budgeted and submitted to both Cities for final approval.
1.3
The Board is seeking qualified disability insurance vendors to provide an integrated and holistic
approach in administration of “self-funded” Supplemental Disability Pay program (ASO STD) and
“fully insured” Long Term Disability benefits. The Airport Board will also consider FMLA services
through the selected disability vendor; however those services related to FMLA are strictly at the
discretion of the Airport Board to include or exclude as a part of the awarded contract.
1.4
Currently, the Board provides both ASO Supplemental pay (ASO STD) and fully insured LTD to
approximately 1800 eligible employees, at no cost to employees. The Board manages all FMLA
claims in-house. Detailed information related to current ASO Supplemental Disability Pay program
and Long Term Disability benefits have been included as part of this RFP Process and may be
found at the Board’s website. Data available for your proposal consideration includes:
Census
Plan certificates/amendments
Loss history
Rate history
Open/closed claim (loss) history
Reserves
Family Medical Leave Act (FMLA) data
1.4.1
1.4.2.
1.4.3.
1.4.4.
1.4.5.
1.4.6.
1.4.7.
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INTEGRATED DISABILITY MANAGEMENT
2.1
The short and long term disability programs are administered under the “Integrated Disability
Management” Program, in support of the Board’s business strategy in managing all disability, sick
leave, intermittent leave and workers’ compensation, together. The Integrated Disability
Management Program is a management strategy that focuses on the integration of absence
management in order to centralize and manage productivity, lost time and other associated
statutory compliance measures, such as ADAA, FMLA, and Texas Workers’ Compensation
statute.
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2.2
All disability and associated processes are self-administered under the Risk Management
Department of the airport Board. This includes self claims administration of Family & Medical
Leave Act (FMLA) claims, both continuous and intermittent; FMLA recertification process, FMLA
approval/notification for managing payroll leave, employee administration of self-funded
Supplemental Disability Pay (similar to STD), claim/form filing for all leave areas/statutes,
Workers’ Compensation partial self-claims administration, indemnification/wage calculations, Pay
revisions and/or overpayments/reimbursements; Modified Duty (Reasonable Accommodation)
Program, Return-to-Work Program, Fitness for Duty Assessments, claim assistance with fully
insured Long Term Disability policy and the associated value added policy services of social
security disability application assistance, will preparation, identity theft, vocational rehabilitation,
and a stay-at-work incentive programs.
2.3
Current Plan Offering of both the ASO Supplemental pay (ASO STD) and fully insured LTD plans
include:
2.3.1.
2.3.2.
Supplemental Disability Pay (ASO STD) program
Waiting Period:
7 calendar days
Benefit Percentage:
Years of Service
6 mos. – 3 years
4 – 9 years
10 – 14 years
15 + years
Maximum Benefit Duration:
180 calendar days
Benefit Percentage
40%
50%
75%
90%
Fully insured Long Term Disability (LTD) policy
Waiting Period:
180 calendar days
Benefit Percentage:
60%
Maximum Monthly Benefit:
$10,000
Definition of Disability: 2 year “own-occupation”
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SHORT AND LONG TERM DISABILITY PLAN SPECIFICATIONS / SCOPE OF WORK
3.1
Proposers should provide competitive market quotes to provide services as outlined in this Scope
of Work. In addition, the Board is interested in reviewing the proposals for the administration of
FMLA services.
3.2
Insurer shall provide a proposal detailing available service/programs with an effective date of
January 1, 2015, including a multi-year rate guarantee.
3.3
Duration of this contract will be for three (3) years, with two (2) one year renewal options, at the
discretion of the Airport Board.
3.4
Insurer shall provide a designated team of claim personnel resources trained on the specifics of
the Board’s Integrated Disability Program policies and processes. The insurer agrees not to
change designated claim personnel without consent from the Board designee, unless a
promotional opportunity or employment termination the is reason for change.
3.5
Insurer shall assign an account manager who will support the Board’s needs and serve as a point
of contact for escalated issues.
3.6
Insurer shall provide claim experience data to the Board’s Broker of Record on a monthly basis,
reflecting the level of detail requested by the Board.
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3.7
Insurer shall provide claims data reports to the appropriate Board representatives on a monthly
basis. The reports should provide appropriate measurement tools and results to include but not
limited to outcomes associated with all Supplemental and Long Term Disability claims.
3.8
Insurer shall provide online access to the appropriate Board “Integrated Disability Program”
representatives to view short and long term disability claim details via an encrypted website as
well as having the ability to run various operational, analytical and trend reports. In addition,
access may be necessary in managing the financial associated costs of ASO, to include banking
reconciliation, internal pay system for leave coding, overpayment and general financial audit
reviews on daily expenditures.
3.9
The Board expects the selected Insurer to deliver daily disability claim administration support to
employees and the Board when appropriate, to include but not limited to, the following services:
o
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Telephonic claim intake services between 8:00 a.m. to 8:00 p.m. CST;
24/7 online claim intake availability;
Timely notice to the employee and the Board of the claim receipt and request;
Claim assignment to appropriate claim personnel within 24 hours of claim notice (this does
not apply to early report claims);
Conduct three point contact with the Board, the employee, and the treating physician within
72 hours of claim receipt (this does not apply to early report claims);
Collection of medical information/ functional requirements of the employee’s job;
Thorough evaluation of all information to render a claim decision;
Thorough and timely follow-up to assess extensions of additional disability benefits;
Timely written notice of the claim decision to the employee and the Board;
Telephonic notice of all claim denials to the Board in advance of written notice provided to the
employee;
Accurate and timely calculation of Supplemental Disability Pay benefits;
Timely notice of benefit approval and calculations to the Board reflecting benefit start and
stop dates;
Appropriate utilization of additional resources, including but not limited to: clinical claim
management, vocational rehabilitation, return to work accommodations, and worksite
evaluations to promote an employee’s ability to stay at work;
The Insurer shall provide appropriate and documented communication to employees about
their rights to appeal any and all claim decisions; to include accurate documentation and
application of all plan provisions;
Transition process from Short Term to Long Term Disability claims to begin no later than 60
days prior to the Long Term Disability benefits start date for those claimants identified as
having Long Term Disability benefits potential;
The Insurer shall provide check cutting and distribution services from the Board’s preidentified bank account and must comply with the Board’s treasury department banking
requirements;
The Insurer will withhold/remit Federal, Medicare and Social Security taxes for each claimant
and submit payment of these taxes under their own Federal Tax ID number;
The Insurer will be responsible for remitting the employer’s share of FICA, to the extent that
FICA is withheld;
The Insurer will be responsible to produce, file and mail out W-2’s and/or W-2C’s as
necessary;
The Insurer is required to file W-2 information with the SSA/IRS and appropriate state tax
agencies if applicable under their own Federal Tax ID number;
The Insurer must include a detailed work plan for implementation of the Board’s Integrated
Disability Program which should include responsibilities and due dates;
Insurer must provide a dedicated program manager for implementation and a team to
manage the implementations process.
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3.10
DFW expects the selected Insurer to propose FMLA claim administration support to employees
and the Board when appropriate, to include but not limited to, the following services:
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Send tentative approval to employee within two days of claim filing;
Send FMLA denial, if applicable, within two business days from date of filing;
Send formal FMLA approval letter, if applicable within three to five business days from receipt
of physician certification;
Follow up with appropriate FMLA letters to employee during duration of leave.
Communicate to Risk Management Integrated Disability staff the status of all FMLA leaves;
Notify claimant and the Board when FMLA leave is exhausted.
Coordinate return to work dates with employee and the Board five days prior to scheduled
return and on the date of return;
Manage data/database in accordance with FMLA regulations;
Provide detailed FMLA claim reporting on a weekly basis, and/or greater depending on
unanticipated claim issues.
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PROPOSER QUALIFICATIONS
4.1
Insurer must be licensed by, and in good standing with the Texas Department of Insurance.
4.2
Account Management Team Lead Experience – team must have an individual that has lead
experience in disability protocols and best practices. Insurer’s account and claim members
should be able to provide a variety of experienced resources. Account team should not be
comprised of only new hires.
4.3
Insurer must demonstrate extensive knowledge of and deliver disability claim management
protocols and best practices.
4.4
Vendor must have a financial rating of Secure or equivalent as defined by ratings agencies such
as A.M. Best, Standard & Poor’s, Moody’s and/or Fitch.
4.5
Vendor and account management appropriate licenses must be included in proposal. The Insurer
should not include any commission in your proposals
4.6
Copies of the Insurer’s certificate of insurance/limits as required under solicitation must be
included in the proposal as support of compliance.
Note that in addition to the specifications/scope of work described above, separate proposal
response documents, produced by Aon Consulting, Inc., on behalf of the Board, will require a
response and those responses will be part of the final insurance policy and/or agreement with the
Board.
END OF SPECIFICATIONS/SCOPE OF WORK
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