I am interested in creating a RFP for a benefits and dental plan and I

[Guest mmasciola]

I am in the process of creating a RFP for our company's health and dental plan. Using a broker at his time is not an option for my company. My company is in the automotive industry with 1200 employees. I am in the process of investigating our companies needs in this area, but would like feedback on what to include in the RFP and where I can receive further information on creating RFP's for benefit plans. Any information in this area would be great appreciated.

[Larry M]

Consider hiring a consulting actuary - one who has h&W background - on a fee for service basis, to help you determine the parameters of the plans you wish to provide, the details you provide in the rfp, the questions you should ask and interpretations of the responses.

Prior (or as part of the process) to your developing the rfp, the actuary should also be able to provide you with an estimate of the costs (current and intermediate range) of the benefit programs you are seeking to give to your employees as well as those of the various options concerning not only plan design, but employee contributions and other aspects of an overall program.

[Sheila K]

If hiring a broker is not an option, then I doubt that a consulting actuary is going to be an option either? You may want to talk to other companies (whether in your industry or not) to get information on their experiences on RFP's of this nature.

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Good Luck!!!

Sheila K 8^)

602 683-1013

[KIP KRAUS]

mmasciola:

My experienc has been that few employers have a benefits person who can write a comprehensive set of RFPs for a medical and/or dental plan. In addition to plan design information/alternatives to be included in the RFPs there is a ton of technical information that needs to be included such as current and prospective underwriting/financing methods,claims/premium histories,plan changes during prior years, participant fluxuation during prior years and so on, and so on. For a copmany your sized RFPs would also contain at least 15 to 20 pages of Q&As for bidders.

The only source, other than from consultants, that I have seen was in the CEBS course I text book back in 1986 or so. I think I still have a copy at home.

I may also have a set of specs. that I have prepared in the past that I will e-mail to you if I can find them.

Having said al of this, which no way covers the subject, let me say that for a group of employees of 1,200 you should be able to hire a consultant to prepare the RFP and quote the coverages and still save money. The ultimate expense of using a qualified consultant may end up being a wash on what you can save in the long run especially if

it has been at least 3 to 5 years since you have reviewed these plans.

If you have any questions, feel free to e-mail me.

[GBurns]

I agree with Kip. You will need a consultant and the cost should be a wash. I have seen a number of RFPs which had the cost of the consultant embedded in the cost of the enrollment materials which were paid for on a pro rated basis by the selected providers. It is all subject to negotiation.

Please dont use a consulting actuary.This is not their area.

[KIP KRAUS]

mmasciola:

I couldn't find RFPs that I had done, but if you can find a copy of "THE HANDBOOK OF EMPLOYEE BENEFITS" published by Dow Jones-Irwin, 1984 there is an APPENDIX 48A starting on page 796 where you will find some sample bid specifications that are helpful. Even the most recent CEBS Textbook may have something similar.

[Larry M]

Ouch, Mr. Burns, you wound me.

Are you insinuating I have bamboozled my clients during these last 30+ years by helping them design, price, submit for bid, maintain and revise their employee health and welfare plans, and negotiate fees and retentions with their carriers and tpas?

...and, yes, I am a consulting actuary - one of many in the health and welfare field.

[Guest ScottN]

Make sure whoever you hire (and I think an actuary would be just fine, Larry), is familiar with Colorado. I don't know if all of your employees are in Colorado but certain areas of our great state have some real issues specific to their location in the health benefits area. Colorado Springs is not immune to them.

[This message has been edited by ScottN (edited 02-07-2000).]

[Guest jlcowden]

Good Advice will pay off. FYI if you are conidering hMO's , they often include in the rates a bit of compensation for consultants/brokers...but it is only paid if you request it.

RIMS has some reasonable beginng points for RFP's available on line to members. The cosr of joining is minimal.

Also you may be able to convince a consulting firm or broker who you will likely use for stop loss insurance wiling to provide a sample RFP for a nominal fee; or free if you are real.......lucky.

NOTE: A good RFP will increase the number of quality and price competitive responses you get. If this is a beauty contest and you don't really want to change; make the RFP long, complex and don't provide the potential carriers/TPA,s with the data they need to quote.

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jlcowden