Explanation
BACKGROUND: As a result of a Request For Proposal process in accordance with Section 329.14 of the Columbus City Codes, three short term disability insurance bid responses were reviewed by the City's Evaluation Committee, comprised of five members.
Each proposal was evaluated on the following criteria as required by section 329.14: competency to perform, quality and feasibility of the offerors technical proposal, ability to perform the required service competently, past performance, and the cost structure of the proposal. Hartford Life and Accident Insurance Company is recommended as the short term disability plan administrator. Hartford Life and Accident Insurance Company provides the most experience with the public sector and, a guaranteed three year administrative rate. The short term disability administrative rate of $3.87 per employee per month is effective February 1, 2008 until January 31, 2009, renewable annually with a two year renewal option. Hartford Accident and Life offers the ability to duplicate negotiated benefits.
Contract compliance number is 06-0838648
To maintain insurance programs in accordance with the negotiated labor contracts, additional funding of the short term disability insurance program is necessary to insure continuation of employee insurance coverage. Cost estimates were based on 2006-07 trust fund expenditures using a three year average of actual city utilization, expected changes due to union negotiations, as well as input from insurance carriers.
FISCAL IMPACT: To enter into a contract with Hartford Life and Accident Insurance Company to establish the maximum obligation liability, and to authorize the appropriation and expenditure of $3,178,350.00 for short term disability administrative and claims services from February 1, 2008 through January 31, 2009. Funding is available in the 2008 budget for this contract. This ordinance is an emergency measure to ensure continued insurance coverage as neg...
Click here for full text