GALLAGHER BENEFIT SERVICES, INC.ILI 1 .
Due Date: July 8, 2011, 10:00 am
Submitted By:
Gallagher Benefit Services, Inc.
Jeff A. Reagan, Senior Consultant
2255 Glades Rd, Suite E400
Boca Raton, Florida 33431
Telephone: (561) 998 -6762
Email: Jeff Reagan @ajg.com
July 5, 2011
Insurance Brokerage Services
RFP NO. SM- 2011 -08 -HR
Xs 1�t7�Ctl� yl�y
Similar Projects Tab 3
Gallagher's Team and Bins Tab 4
Timeline — Projected Tab 5
Required Forms 1 references Tab 6
Cost Proposal Tab 7
Sample of Communication Material Tab 8
City of South Miami
City Clerk Office
South Miami City Hall
6130 Sunset Drive
South Miami, FL. 33143
RE: Insurance Brokerage Services, RFP NO. SM- 2011.08 -HR
Dear Ms. Maria Menendez, City Clerk:
Gallagher Benefit Services, Inc. a subsidiary of Arthur J. Gallagher & Co. is pleased to provide this proposal in
response to the above referenced RFP. Gallagher is the preeminent Consulting firm in the Public Entity Sector with
over seventy Public Entity clients in South Florida. We are confident that we can provide all the outlined services,
and more, at your invitation.
Based on the scope of services outlined in your RFP, we understand that the City of South Miami is seeking to
engage a Consultant to review the current Employee Benefit Plans and provide a detailed analysis focused on plan
designs, financial risk factors and other benefit components so that the City can be certain that they are receiving the
maximum value for the benefit dollars they pay on behalf of their employees. Also, we understand that the City
should be receiving their 2011/2012 Plan Year Renewal package in the next several weeks. Given the short
response time, we assure the City that we will make the renewal analysis a top priority so the City will be able to
finalize their budget as soon as possible.
Gallagher Benefit Services, Inc. can demonstrate that we will meet and exceed the City's requested services, due to
our:
• Public Entity experience and familiarity with public purchasing requirements;
• Full understanding of all types of funding arrangements and their financial mechanisms;
• Access to an in -house Compliance Attorney and Actuary;
• Access to regional and corporate compliance experts;
• Ability to meet deadlines and complete projects in a timely manner and
• Documented history of creative and customized solutions for our clients.
The initial and ongoing review will be conducted by a team of highly qualified professionals with over 100 years of
combined benefits experience mostly in the public sector. During the process, the City will have direct access to all
Team Members who will be involved in the review and analysis of the City's benefit plans. This means that we will
respond quickly on any questions, and that you will have access to specialists in all critical areas during the entire
review process as well as ongoing client management.
Our employees are held to the highest standards, which requires appropriate licensing and registration and strict
adherence to Gallagher's Code of Ethics. Recently, Gallagher Benefit Services, Inc. was presented with Business
Insurance's 2010 Readers Choice Award for best Employee Benefit Consultant. This award is determined by
readers of Business Insurance and is their assessment of an organization's combination of service, value, quality and
innovation.
We are proud and humbled that so many of our partners not only believe in us and the services we provide, but
actually took the time to vote for us. The City's success and satisfaction will always be our top priority, and your
feedback will help us stay on the right course to meet your needs!
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a 2010 f,.
As requested, we agree to add the City of South Miami as an Additional Insured to our general liability policy. AJG
has in place those insurance coverages required and will provide Certificates of Insurance evidencing this fact once
selected. Should a situation arise causing or requiring us to file a claim against one or more of our own policies, we
will do so in order to make sure we can meet all financial obligations determined to be our responsibility.
The following person is authorized to make representations for our firm:
Jeff A. Reagan, Senior Consultant
Gallagher Benefit Services, Inc
2255 Glades Rd., Suite E400
Boca Raton, Florida 33431
Office: 561- 998.6762
Toll -free: 800 - 676 -4004
Email: Jeff_Reagan @AJG.com
Gallagher is known industry-wide for its commitment, innovation, and the creativity of our client- focused teams that
are the driving force behind every customized Gallagher program. We are confident that once you have reviewed
our proposal you will agree that Gallagher is fully qualified for this RFP and we will exceed your expectations. We
ask that you review our website at: www.aallaaherbenefits.com for additional information about GBS.
As of July the 5th, we have not received any addendum to the RFP. We would be pleased to partner with the City of
South Miami on this project and would welcome the opportunity to speak with you as a finalist during the selection
process.
PROPOSER shall furnish the following information. Failure to comply with this requirement will render
the Bid non - responsive and shall cause its rejection. Additional sheets shall be attached by the
Proposer as required.
PROPOSER'S Name and Principal Address:
Gallagher Benefit Services, Inc. Gallagher Benefit Services, Inc.
2255 Glades Rd. Suite E400 8200 NW 41"' Street, Suite 200
Boca Raton, rL. 33431 Miand, Fl. 33166
Contact Person's
Name and Title:
PROPOSER'S
Telephone and Fax Number:
PROPOSER'S
License Number:
JeffA. Meagan, Senior Bengfils Consultant
Officer 56L998.6762; ],`AX..561M5.6708
I. Number of years your organization has been in business, in this type of work:
Gallagher Benefit ,Services, Inc. (Gallagher) was founded in 1961 as file employee benefits
consulting subsidiary of Arthur I Gallagher & Co. from the beginning, our conninti cent has been
to "Thinking Ahead" about cast - effective ways to help our clients attract, retain, and reward the best
performers in theirf ehl
Our parent company s Arthur ,L Gallagher and Co. - has over 10,000 employees. Gallagher Benefit
.Services represents more titan .1,500 of those 10,000 employees located in more than 50 branches
representing 80 offices throughout the United States. While Gallagher has a significant national
presence; each branch office is fully managed by a local Area President who is responsible for its
Operations.
Much o(" the growth of the Gallagher Benefit :Services' division is attributed to the practice of
acquiring top leading boutique consultant and brokerageAunts throughout the country. It has been
Gallagher's strategy to embrace the entrepreneurship of the boutique firms it acquires, but also
supporting best practice .evidence based outcomes while sustaining Gallagher's high emphasis on
compliance qualities and standards.
2. Names and titles of all officers, partners or individuals doing business under trade name:
The following is It list of the principal officers of our parent organization, Arthur J. Gallagher a& Co.,
and the location and nuinher of years employed for each, For additional information regarding our
Board of ZDirectors referetrce to one IOaK lielrar °t nruler tvtvtv.aalcorn.
Naive
Tale
Address
Nunnber of Years Employed
J. Patrick Gallagher, Jr.
Chairman, President and
Trvo Pierce Place, Itasca,
Chairman since 2006,
CP'O
Illinois 60143 -3141
President since 1990, , CFO
since 1995
Walter A Ray
Corporate Vice (president,
Two Pierce Place, Itasca,
Since 2007
General Counsel, Secretar ,
Illinois 60143 -3141
Richard C. Cary
Controller, Chief
Two Pierce Place, Itasca,
Controller since 1997, Chiief
Accounting Officer
Illinois 60143-3141
Accounting Officer since
2001
James W. Durkin, Jr.
Corporate Vice President,
7W Pierce Place, Itasca,
Since 1985
President ofGSrrployee
Illinois 60143 -3141
Bencfits Brokerage
Operation
Jaynes S. Gault
Corporate Vice President,
Two Pierce Place, Itasca,
Corporate Vice President
President of Domestic Retail
Illinois 60143 -3141
since 1992, President of
PIC Brokerage Operations
Domestic Retail PIC
Brokerage Operations since
2002
Nanne
Tille
Address
Number of Years Employed
Douglas K. Howell
Corporate Vice President,
Two Pierce Place, Itasca,
Since 2003
Chirf Financial 0 icer
Illinois 60143 -3141
,S'cotl R. Hudson
Corporate Vice President &
Two Pierce Place, Itasca,
Since January, 2010
President of Risk
Illinois 60143 -3141
Managerneat Operation
Susan E. McGrath
Corporate Vice President,
Two Pierce Place, Itasca,
Since 2007
Chief Mariana Resource
Illinois 60143 -3141
Officer
David E. McGurn, Jr.
Corporate Vice President,
Tim Pierce Place, Itasca,
Corporate Vice President
Corporate of Wholesale
Illinois 60143-3141
since 1993, (president of
Brokerage Operation
Wholesale Brokerage
Operation since 2001
Gallagher Benefit Services is it wholly -owned subsidiary ofAJG and is a corporation.
3. Describe your experience and services related to health management. This would include health
risk assessments, wellness, health coaching, disease management, etc.
wgys. Our on -site wellness expert can customize a website specifically to the City with any
information on wellness programs that you wish to implement.
Gallagher will work within the City of South Miami's budget with the following:
Disease Management Programs
A disease management program can have significant favorable impact on lire City's benefits costs.
Gallagher developed a proprietary health numagetnent program designed for employers with 50 to
4. Describe an example of a City for whom you have coordinated or provided these services.
Gallagher provides consulting services for over 70 Florida public clients. Scrvices range from basic
consulting as requested by the City of South Miami to fall actuarial evaluation and financial
management of very large self-funded aperations
5. Have you ever failed to complete work awarded to you. If so, when, where, and why?
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6. How will you maintain confidentiality of the City's records and data (include in your discussion any
security procedures for accessing, sending, and storing data that are currently in place)?
Gallagher fully complies with HIPAA and all other provision of Health Care Reform. We utilize
Level III encryption when transmitting ePM. Physical client files are kept under lock and key at all
times with controlled access by limited staff members. Our servers are maintained ojj iie to ensure
.full recovery capabilities. In the event of a major disaster; Gallagher has extensive recovery plans
that call on other local offices to take over client service responsibilities and they have full access to
electronic client files so disruption is kept to a minimum.
7. Discuss your service approach and how you respond to City requests. Include what you consider
non - urgent/routine requests and urgent requests.
Our approach is to see that the urgency of a clietWv request is established by the client, not
Gallagher. We recognize that issues affecting urgent member care, critical billing issues or
budgetary matters would take precedent. In any event, one of City s Gallagher Team will respond
within 24 -hours to any request or same business dray in most all cases.
8. How do you measure client satisfaction?
,Satisfact/on is measured simply by the number of accounts that have continued to do business with
We rare proud and {tumbled that so many of our partners not only believe in us and the services we
provide, but actually took the time to vote for as. The City's success and satisfaction will always be
out, top priority, and your feedbrack will help us stay on the aright course to meet .your needy!
9. Confirm that you serve as a consultant or broker, independently, and are not affiliated with any
insurance company, third party administrative agency or provider network.
Gallagher Benefit Services, Inc. serves as either a consultant or broker depending on the needs of
our c/ieares. Gallagher Benefits works solely an belrcrlf of oaar client and is not affiliated with any
TPA, insurance company or provider network.
10. Describe your experience in provider network development, recruitment and negotiation, and
maintenance.
Gallagher does not develop or maintain provider networks. however, we annually assist out clients
in a through network review as it relates to pricing, member satisfaction, out -o f area coverage and a
host of other metrics to erasure that the provider network meets the needs of their employees.
11. Outline your ability to provide expertise and experience in the areas of health benefit plan analysis
and design.
Gallagher will fully examine the City's information including plan denwgraphics, premium, claims'
experience, and utilization of the program. Gallagher frequently reviews and analyzes this
information to help evaluate our client's plan design efficiency, utilization and demographic trends,
and to develop effective wellness programs. The following information is reviewed on a regular basis
with specifics to be defined by the City of South Miand.
* Trend used by carriers
* Atltniiiivtrativeefficieiiciesatideitil)lQveecotiiiiittilicatiollolltrtaclistlec(,',VV
12. Explain in detail the types of analyses you have conducted relative to benefits analysis and design
for a health plan with at least 100 employees.
Gallagher extensively reviews data, information and our clients' corporate benefit philosophies and
culture be/are we make any recommended plan design changes and/or recommendations.
Depending on the size of the client the following is a sample of the information that Gallagher uses
to evaluate plan design efficiency to dc velop recommended changes:
We routinely work with clients to develop a multi-year plait, which serves as the template for plait
funding and benefit changes. This will ensure that your employee benefits program is in synch with
your long-terin budgetary objectives.
For example, if one of your objectives is to control henifil costs, the actuarial professionals at
Gallagher along with your Consultants will provide., ophisticated analysis qJ'experience and create
Gallagher provides our clients a ,full complement of communications services, resources and
technology solutions. We can assist you in developing your communications strategy and offer
everything frone simple in -house benefit brochures and enrollment forms to elaborate customized
cmolimeutpackages. Our employee communicalionsservices include:
14. Are there any existing service provider relationships that may prevent you from acting
independently and providing objective advice or guidance? (Examples, overrides, commission
agreements, preferred contracts, pricing based on volume, etc.)
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15. List any subcontractors who will provide services under this Contract and the services they will
provide. The foregoing list of subcontractor(s) may not be amended after award of the contract
without the prior written approval of the Contract Administrator, to be designated by the City
Manager, and whose approval shall not be unreasonably withheld.
There will be no subcontractors used for the lrnrTose of this corttrtact.
16. List and describe all bankruptcy petitions (voluntary or involuntary) which have been filed by or
against the Proposer, its parent or subsidiaries or predecessor organizations during the past five (5)
years. Include in the description the disposition of each such petition.
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17. Provide specific examples of a significant savings in the cost of benefits to the client that can be
directly attributed to your past services.
January 1, 2011.
In Florida, Gallagher has numerous examples of ho;v we have assisted our governmental clients and
ive would be happy to provide additional examples if requested.
18. List any companies your are affiliated with or have contractual arrangement with including
insurance companies, third party administrators (claims or other administrative /record keeping
services), provider networks, HR or benefits software vendors, etc.
Gallagher (toes not have any direct affiliations with any q f the aforementioned third party vendors.
11mvever, there may he single -case arrangements with certain vendors on hehalfof a client in other
Gallagher offdces around the country.
19. Describe your firm's ability to assist with Benefits Administration issues.
Gallagher will also attend and lead all scheduled vendormeetiugs and will snake vendor performance
an agenda topic in our meetings. Your Gallagher client team will provide the service, support, and
training your staff needs to work with each vendor. We will coordinate all opera enrollment activities
and support all your communications needs.
20. What distinguishes your firm from other consulting firms and why should the City select your firm
for consulting needs?
Gallagher Beneflt Services is uniquely different frmn other consultants and brokeragc firms in many
ways.
Our tninrrary difference is our Public Entity Niehe Practice - Gallagher has a vast working
relationship with over 70publicsector clients in the State of Florida and over 800public sector clients
nationally.
Secondary are the depth and experience of our consultants and account managers, and the team
service model. Specifically, this tnodel encourages the involvement of multiple consultants to work
together to service our customers.
small part one to our in -depth understandhrg of now the products
and services rtffered to employers were developed and built by health plans, insurance carriers, and
provider networks.
There are a number of reasons catty Gallagher Benefit Services is uniquely qualilicd to work on
behaff of the Qv. Specificultv, we believe that the are uniquely qualified to work on lite Chy because
fve:
21. What is the total number of employees that you have assigned, currently, to employees benefits
counseling?
Under Gallagher's unique service model, there are ahvaPs 3 to 4 employees assigned to each client.
Additionally, each is supported by actuaries, compliance attorneys and other support professionals to
see that the "clients' needs are met in a timely and concise manner.
22. What is your corporate mission, vision and values, as well as your organization's philosophy
towards providing benefits consulting services?
Our Mission Statement
At Gallagher Benefit Services, Inc., ive believe in the company we keepfior both ourselves and our
clients. The benvibs of business are really about the measurement and success of our relationships.
We. believe what we do plays an important role. And, we believe that what we do for our clients helps
them become more successlid, no matter feliat business they are in omit what stage of business. At
Gallagher Benefit Services, ;ve have as rich history of successes-our people and our clients.
Our mission and values:
TVe ivill accomplish our mission with the kind of leadership that frill ensure the growth of our
company culture, Am[, fve will honor the inoral and ethical standards that are inherent to building
out- client's trust and confidence to create and maintain a Gallagher Benefit Services team that is the
very best at jehat ive. do.
23. Discuss your firm's quality assurance policies and procedures. How do you measure whether you
are meeting these standards? What is the frequency of any such review?
For internal and regulatory compliance Gallagher has a well-establishedpolicy of Peer Review at all
levels ofadministration. The overallparpose is to fissure the following:
o Fall compliance with regulatory requirements.
24. Detail your ability to monitor regulatory and legislative developments at both the state and federal
level and how this will benefit the City and be communicated to the City.
Compliance requirements for employee benefits plans have exploded over the past 20 years. This
increase in governmental regulation has impacted every area of Human Resources and employee
benefit administration. Gallagher rvill take an active role in assuring that the Ch of South Miand
stays abreast of and in compliance with the multitude of local, state, andfiederal regulations.
Gallagher maintains a staff of compliance experts locally and corporately. They monitor legislative
initiatives, court cases, and industry changes, and ana4vze their impact on your business. These
resources will assure that we apply our understanding of the latest developments to the ongoing
management of your benefits program.
0 Technical Bulletin —focuses on new and pending legislation
GBS Insight — a powerful portal framework, that provides secure, personalized access to the
most current information plan administrators need including the latest on legislative and
regulatory issues
Directions — a newsletter that offers valuable information relating to the benefit needs of
your company and employees
Understand the key provisions of flealthcarc Reform (is the regulations unfold, and
specifically, the near and long-term provisions that will impactyour organization
Know the range of short and tong -term financial impact to your organization and employees,
and your options to deal with this impact
Have a detailed action plan that will guide your response to Healthcare Reform, including
your need to recruit, retain, and motivate a productive workforce today and in the future.
The result of this collaborative process is a comprehensive response to Healthcare Reform. Most
importantly, your response is integrated into your overall benefit strategy.
1. The first step involves working with your tearn to assure everyone clearly understands the key
aspects of Healthcare Reform. Our proprietary HCR Planner provides a framework to identify
specific provisions that will apply to your organization. This includes a review of your current
nnedical plains compared to mandated benefits, a review of your key benefit documents, and other
legal requirements.
2. The second step includes a review of the composition of your workforce and leverages our
proprietary HCR Financial Outlook tool. This powerful decision analysis tool helps us evaluate the
financial impact to you and your empilavees in 2014 and beyond,
3. The third step consists of working with you to determine and itnplernent the hest course of action
based on ourflndings. This includes building the right support team structure to assure you remain
in compliance with the regulations and have a plan to proactively communicate with your ennployees
preparing them for changes.
In addition, we. also have tin in -house attorney, Paul Hebert, located in our Boca Raton office who is
available should the need arise.
25. List all claims, arbitrations, administrative hearings and lawsuits brought by or against the Proposer
or its predecessor organizations(s) during the last (5) years. The list shall include case name, case,
arbitration or hearing identification number, name of the court or tribunal, the name of the project
over which the dispute arose; and a description of the subject matter of the dispute.
Arthur J. Gallagher & Co, and its affiliates rnny be involved in court .actions at ally given tune
proportionate for a broker of our size and profile; Gallagher also considers these rraatters to be
confidential and would be precluded under SEC guidelines from providing anything rrf a material
nature irn,this RFP that is not currently disclosed to the public. Any material itenns are .noted in
reports to the SEC, which are available on ivww.ajg.corn.
26. Describe all proceeding concerning business related offenses in which the Proposer, its principals
or officers or predecessor organization(s) were defendants.
Please see our response to question #25.
27. Has the Proposer, its principals, officers or predecessor organization(s) been CONVICTED of a
Public Entity Crime, debarred or suspended from bidding by any government during the last five (5)
years? If so, provide details.
No.
The PROPOSER acknowledges and understands that the information contained in response to this
Qualification Statement shall be relied upon by CITY in awarding the contract and such information is
warranted by PROPOSER to be true. The discovery of any omission or misstatement that materially
affects the PROPOSER'S qualifications to perform under the contract shall cause the CITY to reject the
Bid, and if after the award, to cancel and terminate the award and/or contract.
VERIFICATION PURSUANT TO SECTION 92.525(2), FLORIDA STATUTES
Under penalties of perjury, I declare that I have read the foregoing Response to Qualification Statement
and that the facts stated in it are true.
Dated this 5"' day of July, 2011.
Jeff A. Reagan
(On Line Above, Print or Type Name of Person Signing)
FAILURE TO COMPLETE, SIGN, & RETURN THIS FORM MAY DISQUALIFY YOUR RESPONSE
Fror+7T�•7JN4.i9C"a
The City of South Miami seeks the services of qualified firms to provide Insurance Brokerage Services for
the City's Employee Benefit Plans, The City of South Miami has approximately 142 employees and
retirees participating in the benefits plan. All employees are located in Florida and retirees may be
elsewhere. The City's plan year is October I "through September 30" '
The benefit plans include the following, but is not limited to:
• Health Insurance
• Dental Insurance
• Life Insurance
• Long Term Disability
• Short Term Disability
• Group Life and AD &D
• Insurance Supplements
• Vision
This section outlines the minimum services that the City expects to receive from a qualified Consultant as a
subject matter expert. Said Consultant shall assist in the design and implementation of a comprehensive
employee benefits program for fiscal year 2012 and beyond.
[Understood and agreed for all items in this section.
ON -rOING SERVICES:
Expected deliverables include, but are not limited to:
A. Monitor the programs' operations throughout the year to ensure that benefit providers are meeting all
customer service requirements and standards.
B. Provide on -going administrative support, as required, by acting as a liaison between the City and providers
to assist with resolving claim disputes, contract administration and interpretations, and other issues.
C. Provide dedicated personnel as a primary contact for managing the account relationship with the City.
D. Meet with the City's Human Resources Director throughout the year as reasonably necessary
(minimum is quarterly).
E. Coordinate annual audits of City's benefit plans and associated vendors and prepare annual financial
reports on the results of the completed plan year.
F. Prepare and deliver any necessary reports to the City's Human Resources Director, including but not
limited to, reports showing claims experience at intervals acceptable to the City.
G. Provide advice and assistance in the review of the City employee health and medical benefits program
on a continuing basis to ensure that those plans are in compliance with state /federal requirements and
their adequacy of benefits with respect to other plans.
H. Track, monitor and provide information on changes in, or any pending or new legislation in the applicable
state and federal lays, as well as any employee benefit and funding trends that may affect the benefits
program, to the City's Human Resources Director.
Advise and assist the City as requested with:
• Writing employee benefits plan modifications and /or new benefits plans and any required amendment
approval process;
• Submission of written reports and other documents as required by the state and /or federal
government;
• Coordination of the annual employee wellness fair.
• Development of an Employee Wellness Program.
Perform special projects as requested by the City, including but not limited to:
• Development and assistance in the implementation of new insurance plans;
• Assistance with adjudication of specific claims as requested by the City;
• Recommendation of alternative benefit designs or delivery systems as dictated by emerging plan costs
for benefit practices.
K. Ensure personnel availability for meetings, phone calls, and e-mail correspondence as required.
L. Maintain confidentiality of City records and data in accordance applicable federal and state laws.
M. Perform other related services on an "as- needed" basis.
Understood and agreedfor all items in this section.
RENEWAL -YEAR SERVICE :
A. Using current health and medical benefit plans as benchmarks, research, design, and propose employee
benefit plans for the City, as appropriate.
B. Meet with the City as necessary to discuss benefit plan options and establish goals and objectives for the
City's benefit programs.
C. Provide analysis of current plans, including the review of past performance, with regard to renewal.
D. Review additional available cost savings plan alternatives and creative funding options.
E. Determine the appropriate employee and employer benefit contribution levels.
F. Review and recommend annual contribution strategies for active participants and retirees.
G. Provide City with information on what other municipalities of comparable size and location will be doing
with their benefits in the upcoming years.
H. Conduct renewal negotiations and develop appropriate information for management purposes.
I. Upon City's request, coordinate a comprehensive "Request for Proposal" (RFP) process to identify
potential high quality Benefit vendors, according to established City guidelines. The scope of the RFP may
include but not be limited to: Medical, Dental, Vision, Basic Life, Voluntary Life, Accidental Death and
Dismemberment; Short Term and Long Term Disability insurance providers.
). Act as lead negotiator and consultant to the City during benefit contract negotiations and renewals.
K. Prepare and present a written analytical report of the proposals received including recommendation(s)
and supporting documentation for recommendations.
L. Review plan documents (including employee booklets) and master contracts before adoption and printing.
M. Assist with planning and implementation of selected changes including transition from the current to new
vendors, the renewal proposal, and other benefit changes.
N. Assist with developing City employee benefit program communication materials. Coordinate the design,
printing, and production of those materials, as edited and approved by the Human Resources Director.
O. Advise and assist the Human Resources Director or designee with the review of contracts, plan
documents, insurance policies and other documents for applicability, accuracy, consistency, and legal
compliance.
P. Assist City with the development of performance guarantees relating to vendors' performance of
services to the City, and evaluation of the performance of vendors.
Understood and agreedfor all items in this section.
Nationally, Gallagher has over 800 public sector clients including state and local governments. Due to the number of
clients that Gallagher represents within the public entity arena, we established a Public Entity Niche: This Niche
promotes communication and discussion among our public sector consultants so that they can share their expertise
and ensure best practices. This allows benchmarking capabilities against peers and similar sized entities, as well as
market trends. For a majority of our public sector clients we provide both health benefit consulting and actuary
services. Recently, we pattamod with the National Public Employer Labor Relations Association (NPELRA) to
leverage our expertise across the country to bring added value to their member municipalities. The proposed
Gallagher team is made up of members from the Public Entity Niche Practice.
Gallagher's proposed Team has extensive experience with Florida political subdivisions. We provide support to over
70 public sector clients within our South Florida operations alone. The City of South Miami's assigned Team has
assisted numerous other governmental clients with the design, implementation, and evaluation of their employee
benefit programs. Our clients are either insured or self-funded for their benefit plans and Gallagher assists them with
the selection, implementation and financial management of their programs within this arena.
Gallagher team members regularly participate in strategic planning, budgeting, labor and union negotiations.
Recently, our actuarial work was a key element in a School Board of Broward County lawsuit for breach of contract,
which ultimately settled favorably. We have consistently demonstrated our knowledge of Section 125, HIPAA, FMLA,
Health Care Reform and other State and Federal Regulations as they impact Florida public entities.
Gallagher has extensive local resources that will be responsible for services provided to the City including onsito
actuaries and an onsite benefits attorney. In addition, Gallagher Beriefit Service's Technical Services Unit,
Retirement Services, Actuarial Consulting Unit, Human Resource Consulting Division, and Compliance Unit actively
support our local personnel.
Understanding and Approach — Consulting Services
In reference to your stated Scope and Services, Gallagher Benefit Services, Inc. will carefully monitor the program
and provide detail and summary reports at regularly scheduled intervals. Orre of Gallaghat's key competitive
strengths is the ability to provide clients with in-depth analysis of all their bonefit-rotated issues.
Gallagher Benefit Services, Inc. understands that the City of South Miami is seeking a Benefits' Consultant for the
first time in several years to assist the City in the overall management of its employee benefits program. Our client
team is composed of a dedicated, experienced staff that will provide a full range of services for the selection and
ongoing administration of your employee benefits program.
We will represent your best interests in all ongoing interactions with carriers and vendors, including negotiations and
handling all ongoing service. Your dedicated Gallagher service team will be your advocate when it comes to
addressing individual claim problems, billing questions, plan provision interpretation and will handle these issues
directly with the service provider. The inside service member of the team working on your account will be always
available should any small claims problems arise.
Gallagher will also attend and lead all scheduled vendor meetings and will make vendor performance an agenda
topic in our meetings. Your Gallagher client team will provide the service, support, and training your staff needs to
work with each vendor, We will coordinate all open enrollment activities and support all your communications needs.
Gallagher utilizes a proven project management methodology to ensure your program runs smoothly. We will
develop a calendar for your program's implementation and constantly monitor and report on key milestones
throughout the year. Our meetings will be managed efficiently and effectively with tight agendas and expected
outcomes. We will follow up each meeting promptly recapping key activities, identifying next steps, and, most
importantly, assigning accountabilities and timetrames for all work.
As your professional consultant, Gallagher will help the City to develop new ideas, implement new benefit plans and
assist in the transition of benefit plans that no longer meet the needs of the City. Gallagher has developed a full array
of services that are an important component of the benefits delivety process. You can rely on these services to
increase the quality at the City's employee benefits deliverables and help reduce the amount of time your people
spend on administration of your benefit plans. The illustration below shows an overview of Gallagher services that
we provide throughout the year.
Gallagher will meet with the City on a regular basis, specific to your needs as mutually agreed to in our annual
service plan. For a group the size and complexity of the City, we feel formal meetings fall into several categories
for which will be detailed within the initial few weeks of the Consulting agreement
Account Management
The Gallagher team will meet with the City to review all work processes and priorities at least quarterly. We look
at the developing claims' experience in the group and discuss trends along with changing market conditions as
soon as possible. These meetings will address issues such as new benefit development and strategies, current
claims experience and trends, actuarial analysis, predictive modeling, carrier service levels, regulatory and
compliance and market changes. They are intended to be a broad brush look at all areas of operations, in a
more formal setting, normally lasting 2-4 hours. It is anticipated that in addition to Gallagher consultants, account
managers and other support staff will be in attendance.
Pro Renewal Planning Meeting
This meeting is a formal meeting with Gallagher consultants and actuaries to forecast on the recently released
Benefits' RFP and current renewals on each line of business. Our goal is to perform this function as soon as
possible so the City lies ample time to address its budgetaty requirements. This meeting will specifically focus
on financial projections, market trends and allow the City's stakeholders to discuss and develop a benefit
strategy from the emerging plan financials.
In addition, we develop a work plan and create a detailed timetable for additional information and decisions that
will be made in the hiture, as to renewal projections, employee contributions, enrollment processes and the
impact of Health Care Reform. If the City requires an RFP for any line or service, the timetables are developed in
the meeting.
Renewal Presentation
Depending on the schedules that you have in place today with your service providers, this presentation is the
culmination of the Renewal Planning Process that Gallagher uses where we will review all of the renewal offers,
counteroffers and RFP analysis that has been prepared. In the case of a new carrier or vendor a more detailed
process will take place to ensure the smooth transition to the new carrier.
Compliance review
A detailed review will occur within the first few weeks of the initial contract and then annually for each plan and
assures all regulatoty requirements and being addressed. This review will include our compliance allomey along
with the account manager assigned to the group.
Strategic Planning and Development
This process engages key managers at the City to become actively involved in the benefit plans. This process is
intense upfront, requiring surveys of management and several discussions about the philosophy" around
benotits. Annually this meeting is a refresher of developing financials and other industry information, including
the City's financial results.
Benefit Committee / Carrier Meetings
If established by the City, this may include unions and other employees and maybe appropriate to gauge
change and collective buy-in for changes.
Gallagher meets regularly with Carrier Representatives and Senior Management. Due to the volume of business
managed by Gallagher with each carrier, we have interaction almost daily.
Gallagher will coordinate Client / Carrier meetings on an ongoing basis to develop service action plans, conduct
clinical evaluations and basic goallexpectation setting. Gallagher is very respectful of our clients' time and
resources and most of our clients expect that we will fully manage the carder relationship and the need for the
client to meet directly with the carriers typically is managed to a minimum.
The City of South Miami's Client Team
Gallagher is proposing an extensive team of professionals specializing in multiple areas of experience and
expertise in the public sector. We found that by having a number of individuals focused on specific activities we
are able to provide and secure the "best in class" outcomes available. The team will also provide each other
with technical and analytical support and peer review each other's work.
Our "core" team consists of a group of individuals that will be fully familiar with your account There will be a
central point of contact, but our unique team approach will allow you to contact any one of team members when
a response is needed quickly. All team members are assessable 2417 through phone, email and their
BlackBorty's. The following individuals along with their responsibility will work with the City:
Area President — Jeff Angello provides overall supervision and guidance for our seventy plus public sector
clients here in Florida. Jeff has been with GBS for over 25 years and has spent the bulk of this time working with
municipalities like the City. He will oversee the City's "core" learn members.
Lead Benefit Consultant - The City of South Miami's client team will be led by Jeff A. Reagan, Senior
Consultant Jeff has over 27 years of employee benefits' experience focused in self-fundingl He will he
responsible for the overall client management, service and plan outcomes. Ile will be the person directly
responsible for all activities and services provided to the City.
Compliance Attorney — Paul Hobert, JD, will be involved in the initial compliance review and then annually to
assure all regulatory requirements are being addressed. Paul will be available to the City throughout the contract
period to assist in issues related to compliance and will he happy to work with the City's attorney as the need
arises.
Account Manager — Linda Waltman will be the Account Manager for the City of South Miami. She is
responsible for the overall administrative servicing including general compliance consulting, employee education,
wellness promotional programs, contract and policy review and day to day service of client Benefit
Administrators and Human Resource Departments.
Specialized Support - Augmenting your local client loan], are our corporate and regional healthcare experts
who provide specialized client support, such as monitoring and communicating on legislative and compliance
issues, actuarial support and analysis, audits of plan performance, systems, and tools to better manage benefit
plans and costs with the latest trends, research, and carrier information.
Your dedicated account team will be responsible for
• Now benefit implementation
• A comprehensive Client Service / Consulting Plan
• Web-based self-service benefits administration
• Face-to-face enrollment support
• Preparation and dissemination of communications materials
• Electronic management of eligibility information for all plans
• Year round employee communication strategies (open enrollment, on-going enrollment, wellness,
general education)
• Annual Compliance Consultation and Checklist Review
• Day to day service support (for billing, problem claim resolution, eligibility, and other)
• Monthly and Quarterly financial analysis prepared by our Actuaries
• Contribution Modeling
Employee Benefit Plan Reporting
Unlike many of our competitors, the reporting that you'll receive from Gallagher will be produced by our in-house
actuaries and their financial support staff. This reporting process produces the high level of financial accuracy
that is required in today's public sector environment. Depending on the City's specific requirements, Gallagher
can provide the following types of reports:
Monthly Reports
• Summary of plan costs
• Analysis of actual cost versus budget
• identification of employee contributions
• Tracking of large claims
• Identification of plan costs by specific line of coverage (i.e, medical, dental, pharmacy, etc.)
Quarterly Reports
* Comparison of plan costs to projections
* identification of services provided
* Utilization review
* Comparisons to prior claims periods
* Plan trends
Annual Reports
• Executive summary of program expenses
• Comparison of current costs to renewal costs
• Renewal alternatives
• Incurred but not reported (IBNR) dollar projections
• Future plan cost projections
• Dollars saved by contract negotiation
• Percent of benefit dollars paid by employee
• Claims by size
• Physician visit details
• Benefits paid by type of service
Vendor Negotiations
When it comes to negotiating rates and renewals for our clients, Gallagher has the experience, the expertise, the
relationships, and the independence you need to obtain the best combination of rates, rate guarantees, policy
terms, and benefit plan design. As one of the largest employee benefit brokers, we know the markets and we
know their specific strengths. As a result, we can evaluate carriers that have the right products for the City. We
will maintain complete independence to assure objectivity in providing the best carriers, vendors, networks, and
risk arrangements for each unique negotiation.
In the event a RFP selection choice is challenged, Gallagher has the experience and knowledge in knowing how
to successfully defend against competitor challenges, Because of our expert RFP analysis and summary, there
is little room for successful challenges and protests. With our professional team of consultants, actuaries and
legal services, Gallagher is well positioned to defend against any decisions made by the City.
There are many ways in which we have analyzed and delivered financial savings for our clients. We do not
simply reduce benefits or increase employee contributions. Nor do we make your service providers take less
only to deliver lesser services to your plan members. Our disciplined approach to processes involved in the
brokerlconsultant work product includes both strategic and tactical planning to manage ongoing services,
compliance, education, financial exposure and vendor performance. Our work to assist in the development of
long term plans to lower medical cost includes actuarial analytics, health care metrics, wellness and worksito
interventions and vendor deliverables.
We have used literally hundreds of traditional ways to save our clients money, but our approach is even broader
with our clients who want to "think out of the boxfl. For example, we have developed partnerships between the
client and the service provider to assist in trial solutions to new ideas, implemented cuffing edge benefit plans
heretofore not commercially available, used our proprietary data analysis capabilities to find population health
systems applicable to that client, and developed unique pharmacy solutions. We have had success with
vendors participating in savings results with or in lieu of strictly charging straight fees for services. There are
many options available... your objectives and tolerance for creativity is the only constraints.
Employee Services and Education
A significant part of our role in the employee benefit education process is to assist with employee meetings. The
level of our involvement depends on the needs of the City of South Miami. We typically take an active role,
including: •
® Assisting in scheduling meetings with carriers and vendors
* Developing a meeting agenda
* Presenting infonnation on benefit trends and costs, along with cost drivers
* Information on your specific benefit plans
We can also automate your open enrollment and new employee orientations. With a vast array of preferred
vendors, Gallagher has access to the best on-line enrollment solutions that will suit your organization's needs.
A complete employee benefits guide will be provided during Open Enrollment and for your newly hired
employees throughout the year. The understanding of employee benefits relies on more than a guide for
reference, which is why we have streamlined the Open Enrollment process with additional materials as well,
including:
* Open enrollment announcement letters
* Benefit summaries and plan comparisons
* Enrollment reminders
* Q&A information
* Confirmation statements of an employee's current benefit elections
® Posters and payroll stutters
* Newsletter articles
Ongoing Plan Review and Analysis
Gallagher will fully examine the City's information including plan demographics, premium, claims' experience,
and utilization of the program. Gallagher frequently reviews and analyzes this information to help evaluate our
client's plan design efficiency, utilization and demographic trends, and to develop effective wellness programs.
The following information is reviewed on a regular basis with specifics to be defined by the City of South Miami:
Claims and premium history
Utilization history
® Medical and disease management outreach and compliance
Rate base (administrative fees, claims projections)
Employee contribution models
Employee engagement tools and usage (incentive models)
Benefit modeling and relationships
Provider network reimbursement levels
® Centers of Excellence and provider designation programs
® Trend used by carriers
Administrative efficiencies and employee communication outreach success
Open Enrollment and Employee Communications
Employee benefit programs can be confusing to even the most knowledgeable of employees. However,
employee satisfaction and lower claims experience can be directly linked to your employees' understanding of
your benefit programs.
Gallagher will work will) the City's appropriate staff to develop customized education programs. We will utilize
the latest educational techniques and technology to help your workforce better understand their plans and also
to encourage healthy lifestyles through our effective wellness programs.
it is imperative that the CrVs employees clearly understand your benefits' program and the role it plays as a part
of their total compensation package. Employees who have a greater understanding of the program will value it
more and will be more likely to stay with the organization. A strong communications program is also veiy
important in competitive recruiting environment.
Gallagher provides our clients a full complement of communications services, resources and technology
solutions. We can assist you in developing your communications strategy and offer everything from simple in-
house benefit brochures and enrollment forms to elaborate customized enrollment packages: Our employee
communications services include:
® Employee communications strategy
Open enrollment and new hire orientation materials
Employee education programs and websites
® Employee benefit statements
Employee newsletters
Benefit confirmation statements
Total compensation statements
Employee communication sites
® Employee satisfaction surveys
Within Gallagher, we have the communications expertise that makes presenting the value of the City's benefits
program to your employees as simple as possible.
Compliance with federal and state laws
Gallagher has a team of compliance consultants who have experience in all aspects of employee benefits with
an emphasis on federal law and regulatory compliance. This team consists of over 15 people focused on benefit
plan compliance including 5 specialized allomeys.
The City of South Miami's consulting team will work with in-house legal counsel and our compliance helpdosk to
provide the City with information on state insurance laws directly trom the statutes as well as directly from state
insurance departments and numerous insurance companies with whom we place business.
We also maintain a complete compliance database for use by our consultants and account managers. The
compliance database contains summaries of federal legal requirements along with practical tools such as
models, sample forms, and checklists in electronic format
In addition, we have outside counsel with extensive knowledge and experience in welfare benefit plan and labor
compliance. This counsel is on retainer for reviews of Gallagher publications such as our Technical Bulletin and
Benefit Bulletin and assistance with more complex compliance questions and issues.
We assume the responsibility to confirm and implement policies and procedures that ensure compliance with
applicable laws and legislation. We perform the following services to ensure our clients are in compliance:
* Review administrative procedures: i.o,, COBRA, FMLA HIPAA etc.
* Reduce claim disputes by reviewing the plan documents for consistency and clarity
* Review insurance contracts for accuracy with negotiations
* Provide discrimination testing (Section 105h, 125, 129...)
* Confirm plan design compliance with state and federal regulations
* Review and draft benefit plan documents
* Conduct a review of summary plan descriptions, contracts, employee summaries, and
policies / procedures to outline variances and inconsistencies
* Provide access to technical consultants for advice and direction on legislative issues
® Offer periodic seminars and bulletins on regulatory issues extensive library of Compliance
Gallagher's specific compliance consultants frequently conduct training seminars and often speak at industry
events such as SHRM conferences. Our seminars are focused on education rather than marketing. They are
designed to help our clients understand compliance issues. Seminars that we have conducted within the last 12
months include:
• National Healthcare Reform
• HIPAA - Privacy, Security and EDI
• HIPAA - Nondiscrimination
• COBRA Basics
• Regulatory Overview
• Cafeteria Plan Overview
• Tax Rules & Employee Benefit Plans
• Cafeteria Plan - Change in Status Rules
• Family Medical Leave Act
• FSAIHSA Rollover
We provide legislative and regulatory updates to our clients on a regular basis. General compliance information
is provided via our Technical Bulletin, and benefit and compliance•related updates are provided via our Benefit
Bulletin.
In addition to compliance updates, our consultants and account managers have access to a complete internal
Health & Welfare Compliance database. Our internal Health & Welfare Compliance database covers a// major
federal compliance mandates. Materials in the database include:
* Digests — a brief summary of the applicability and requirements of the law
* Models — customizable materials such as sample notices, letters and forms (e.g., a initial COBRA
notice)
* Checklists — such as family status change rules for cafeteria plans and an activity checklist for
HIPAA privacy
* Regulatory material — copies of many of the applicable regulations, IRS private letter rulings, DOL
advisory opinions and other federal regulatory guidance.
* Forms — "fill in the blank' samples that can be used in plan administration (e.g., certificate of
creditable coverage, OMCSO forms)
Gallagher has multiple professional reference source materials available to our clients, These references
Included:
Compliance Manuals:
* COBRA Guide (EBIA)
* Cafeteria Plans Guide (EBIA)
* Fringe Benefit Plans Guido (EBIA)
* HIPAA Portability and Privacy (EBIA)
* Leave and Disability Coordination Handbook (Thompson Publishing)
* Guide to Medicare Drug Benefits (AIS)
On-Line Resources:
* Spencer's Research Reports
* CCH COBRA Guide
* BNA — HR Library
* RIA Pension & Benefits Expert
* RIA Qualified Pension & Profff Sharing Plans
* RIA Pension & Benefits Expert
* RIA Qualified Pension & Profit Sharing Plans
Client Compliance Service Meetings
Each year, Gallagher conducts a client Compliance meeting to ensure that the client is fully aware of their
compliance responsibilities in the event of an audit. At this meeting, Gallagher carefully develops a compliance
checklist and develops an action plan based on the client's compliance needs.
Gallagher provides a quarterly newsletter (Directions), monthly HIPAA newsletter, and Technical Bulletins as
appropriate, Additionally, Gallagher subscribes to an online industry news service. Pertinent information can be
attached and emailed to clients who might be interested in or impacted by the information.
We will assist you to remain in compliance with state and federal regulations. Gallagher experts will evaluate the
design of your benefit plans, review all relevant documents, such as summary plan descriptions, beneffl
documents and contracts, and your employee communications. Gallagher will identify possible areas of litigation,
conduct a year-end compliance checklist, and assess compliance within COBRA, FMLA, HIPAA, Medicare Pad
0, and other regulations. In addition to regular seminars and webinars, we will keep you up-to-date on benefits
issues through communications, including:
• Technical Bulletin — focuses on new and pending legislation
• GBSInsight — a powerful portal framework that provides secure, personalized access to the most
current information plan administrators need including the latest on legislative and regulatory
issues
• Directions — a newsletter that offers valuable information relating to the benofit needs of your
company and employees
We also maintain a complete compliance database for out advisors to use. Our compliance database contains
summaries of federal requirements along with practical tools, such as models, sample forms, and checklists in
electronic form.
Health Care Reform Consulting Plan
Gallagher ties developed extensive tools to help manage your Health Care Reform strategic plan. We have provided
our clients with two Consulting Initiatives including (1) a Human Resource Consulting Plan, and (2) a Financial
Consulting Plan, A more detailed overview and developed consulting plan on Health Care Reform will include:
* Ongoing educational sessions (seminars, client round tables, webinars, technical bulletins and
notices
® Client specific consultation with Account Manager
* Communication strategic plans
* Review of all carrier contracts and materials
* Employee compliance communication requirements
* Train on administrative processes needed to be compliant
* Plan modeling (HRM) for cost analysis
Our Account Manager team works directly with our customers on a Health Care Reform Consulting Planner, This
Planner will clearly outline your requirements to make sure that you have fully implemented any and all compliance
initiatives, The Planner will also review your cornices administrative and benefit programs to ensure that they are
going to meet and exceed Healthcare Reform items.
Financial Consulting Plan
A focused education on how Healthcare Reform will affect your organization. Specifically, the areas of focus include
the following:
• Provide high level overview of Health Care Reform
• Understanding the analysis on all areas that may be impacted financially such as (1) penalties, (2)
plan design impact, (3) areas for financial reimbursements, tax credits and other incentives
• Discussions on possible impact to the City's organizational culture
• Discussions on possible employee compensation changes
On-line Tools and Resources
Gallagher's Online Client Community
All Gallagher clients are enrolled on an informational resource web tool. The Online Client Community is an
extensive Human Resource and Management tool, which gives you access to benefits benchmarking data, extensive
research tools and guides, compliance tools and checklists, access to experts for specialized questions, and a
HIPAA secured way to post information to Gallagher that cannot be intercepted by Internet hackers. There is an
entire section of this tool that is committed to all proposed and final State and National regulations and legislation.
Gallagher Regional Compliance Hellidesk
Our Compliance Heiridesk is staffed by teener Department of Labor attorneys who helped write HIPAA regulations
and other major benefits' compliance laws. The heiadesk assists your GBS consulting team to provide you
compliance and legal guidance as needed.
Healthcare Analylics (Gallagher Actuarial Services)
Gallagher's actuarial team is developing detailed financial models that we will be using to help our clients understand
the financial impact of Health Care Refoun in order to assist our clients make informed decisions.
Gallagher Lead Consultant
The City's lead Consultant will assist you in developing your overall Health Care Reform strategy, Your lead
Consultant will have access to all of the Gallagher's tools needed to help understand how to provide you with the
best recommendations possible.
Account Manager
The City's Account Manager will work with your Human Resource team to make sure that they fully understand
Health Care Reform's administrative processes as well as help you develop your employee communications plan.
Dedicated Wellness Coordinator
Gallagher is committed to the health and wellbeing of our clients and their employees. Recently, we added a
dedicated Wellness and Health Management Consultant whose sole purpose is to with our Florida clients to evaluate
their existing wellness programs and make recommendations so that maximum benefit is realized by the employees.
Summary
We at Gallagher look forward to discuss in greater detail the specific services that the City requires, We will be
happy to discuss any services that have not been expressly addressed in this response to your RFP to determine
appropriate pricing. Any service that is mutually identified by the City of South Miami and Gallagher to be integral to
the successful operation of the City's benefit plan will be performed as part of our normal operations.
A sample of a Gallagher-produced employee benefit guide can be found under Tab #8.
Similar Services / Projects:
Monroe County School Board
Health & Welfare Consulting Services and Actuarial Services
241 Trumbo Road
Key West, FL 33040
Client Since: 1993 Through: Current
BS and Healthcare Analytics has provided medical plan design and funding
recommendations since 1984. For the Monroe County School Board, CBS has:
City of Deerfield Beach
Medical Stop Loss Claims Recovery and Actuarial Services
150 N.E. 2nd Avenue
Deerfield Beach, FL 33441
Alachua County Board of County Commissioners
Health & Welfare Consulting Services and Actuarial Services
12 SE First Street, 3rd Floor
Gainesville, FL 32601
million dollars during our association.
r +�
Pssistance to the County on an ongoing basis.
Health Care District of Palm Beach County
Benefits Consulting, RFP Design and Analysis, Actuarial Services
324 Datura St. Suite 401
West Palm Beach, FL. 33401
Alachua County Board of County Commissioners (CHOICES Program)
Benefits Consulting, RFP Design and Analysis, Actuarial Services
218 S.E. 24th Street
City of Jacksonville
Benefits Consulting, RFP Design and Analysis, Actuarial Services
St. James Building
117 West Duval Street, Suite 150
Jacksonville, FL 32202
During the recently completed medical renewal negotiations for January 1, 2011,
Sa
Negotiated the initial increase from 20.9% to 16.5% with no changes to
Further negotiated the renewal to 9.960o wi in al ene c anges.
medical plan.
On the Life Insurance renewal for January 1, 2010, GBS managed the RFP
process for this plan with annual premiums of $1,814,408.
d--tR--P- P0 d&wf vil
over $900,000 with no change in benefits and a three year rate guarantee.
Sample List of Florida Governmental Clients
Calhoun County School Board
Washington County School
V City of Sunrise
V 11
Gallagher has developed a team of professionals with documented expertise
working with governmental entities such as the City of South Miami. The
client activities are as follows,
11
(Area President/
Public Entity Niche
Practice Leader)
Jeff A. Reagan
(Lead Consultant)
(Lead Actuary)
® Area President for Gallagher Benefit
Services' Boca Raton and Miami
offices
® Responsible for all South Florida
benefits operations and has
management responsibility for both
the Boca Raton and Miami office
* Acts as a national resource for self_
insured employer and provider
reinsurance
* Monitoring the effectiveness of
benefit programs
® Comparing benefit options and
facilitating committee
* Identifying gaps in coverage
* Leading the team in the negotiations
of benefit programs
® Designing and implementation of
benefit programs for public _entities
® Senior Consultant in Boca Raton
office
* Public Entity Niche Practice Lead
* Specializes in health and welfare
plans
* Leading the team in marketing of
benefit programs and implementatiot
• Lead Consulting Actuary
• Provides actuarial support for
Gallagher clients
• Developing funding rates and
reserves
• Reviewing stop-loss plans and rates
• Filing required actuarial reports with
regulators
• Evaluating discounts offered by
provider networks
• Preparing retiree medical valuations
• Evaluating financial impacts of plan
X
* School Board of Broward Medical
Plan Marketing
® Renewals for Medical, Dental,
Disability, Life, Vision for
governmental entities
® Negotiations of medical benefits
and plan terms
* Union negotiations
® Early retirement plan options
® Closed door and board meetings
* Health Care District of Palm
Beach County, renewal and
marketing of medical plans.
* Thales Security & Defense,
renewal and Marketing of benefit
plans.
• School Board of Br•ward Medical
Plan Marketing ' Budgeting/
Forecasting
• Renewals for Medical, Dental,
Disability, Life, Vision,
Underwriting
• Budgeting, Forecasting, Provider
Disruptions, Network Discounts
• School District of Lee Cancer and
Dental Marketing
• GASB for multiple governmental
entities
• Medicare Part D
Providing actuarial certifications as
needed
David Parker 9 Consulting Actuary
* Traditional Health and Welfare
consulting to Plan Sponsors including
underwriting and budgeting, plan
design, and claim reserve
development
* Data management support, including
data mining, statutory and GAAP
reporting
* Preparation of rate filings for state and
federal regulators for commercial and
Paul Hebert 0 Area Vice President of Compliance
(Lead Attorney) 0 Include advising clients on the design,
implementation and operation of
health and welfare, and retirement,
arrangements; conducting plan
operational and compliance reviews;
performing research and consulting
on IRS and ERISA compliance issues;
and assisting clients with vendor
changes
0 Tracks and evaluates: recently
adopted and proposed legislation;
regulations and rulings in the
employee benefits field (such as
HIPAA, COBRA, cafeteria plans, and
Medicare) and performs internal and
internal training on new laws and
School Board of Broward Medical
Plan - Budgeting, Forecasting,
Provider Disruptions, Network
Discounts
School District of Lee Medical
Plan budging, Forecasting, 112,08
IN SERIT• 1 =011111 43M TIFT0
HIPAA, FMLA, COBRA
School District of Lee - HIPAA,
FMLA, COBRA
* Training programs on Healthcare
Reform, FMLA, COBRA
® Review contracts
® Review plan clocurnents
Linda Waltman 0 Account Coordinator specializing in a Health Care District of Palm
health and welfare plans. Beach County
0 Analyzing RFP responses ® Analyzing RFP Responses
® Day to Day Client Services
Lydia Bautista ® Technical Consultant ® School Board of Broward Medical
® Analyzing RFP responses Plan Marketing
® Coordinate with account team and ® Analyzing RFP Responses
general support a School District of Cancer and
® Omanize final Droiects Dental Analyzing RFP Responses
JEFFREY A. REAGAN
SENIOR CONSULTANT
JEFF_REAGAN @AJG.COM
561 - 998 -6762 OFFICE
LEAD CONSULTANT
Jeff is a senior consultant with Gallagher Benefit Services, Inc. He has over 27 years of
varied experience in the field of managed health care and employee benefits. Jeff's
primary responsibility is market our consulting services to a wide array of prospects and
clients around the country. He works with plan sponsors in the design, pricing, and
financial management of their benefit plans. Prior to joining Gallagher, Jeff held various
positions in management, consulting and insurance industries. He has extensive
experience in managed care and in the reinsurance field. He has also served on
several health care reform panels and committees.
EXPERIENCE
✓ Health plan management including underwriting and budgeting, plan design,
and sales /market development.
✓ Network /Provider development and pricing.
✓ Development of shared -risks arrangements.
✓ Involved in a variety of rate filings for state and federal regulators for
commercial and government health products such as Medicaid and Medicare
Risk.
F1l1,1*J_!100&l 111111011
• Benefits Consultant, Keys Insurance Services, Inca
• Director of Commercial Sales, Humana, San Antonia, TX.
• Executive Sales Director, Prudential Insurance Company
✓ Commercial Sales Manager, Humana, Houston, TX.
• Sales Manager, Humana, Kansas City, MO.
• Director of Development, HealthAmerica, Nashville, TN.
EDUCATION, PROFESSIONAL ORGANIZATIONS AND LICENSES
• Finance & Accounting, University of Tennessee at Knoxville
• Associate Member, HIAA
• Past Chair, Healthcare Coalition of Monroe County
• Member, Council for Affordable Health Care, Washington, DC
• Florida Licenses — Health, Life, Variable Annuity & Commercial Lines
• Non - Resident Licenses in the States of: Virginia, North Carolina, Texas, Georgia,
Tennessee and Kentucky
LINDA WELTMAN
ACCOUNT MANAGER
LINDA_WELTMAN @AJG.COM
561 - 998 -6751 OFFICE
SERVICE LEAD
Linda Weltman is an Account Manager with Gallagher Benefit Services, Inc. and has
been with GBS for over 8 years. She has over 26 years of varied experience in the field
of life, health care and employee benefits.
Linda's primary responsibility is client service and marketing. She is an extension of the
client's HR department and has a strong commitment to timely responsiveness. Linda
provides support and knowledge which will help HR to deal with day to day issues that
arise.
EXPERIENCE
Worked with medium to large size clients on all issues involving Employee Benefits
which include but not limited to the following:
• Claims and Billing Resolution
• Assisting HR Dept. in developing communication materials
✓ Assisting with Open Enrollment Meetings
• Prepare Annual Benefit Booklets
• Prepare quarterly dashboard reports and financial analysis
• Marketing and analysis of rates /benefits on all lines of employee benefits
• Monitor and communicate legislative updates to HR
• Contract/SPD Review
• Day to Day contact for HR dept.
✓ Frank Crystal
✓ Agents Umbrella Group
• AON Consulting
• Financial Planning Consultant
• Mett-ife
LICENSES
✓ Life and Health
GLEN R. VOLK, FSA, MAAA
CONSULTING ACTUARY
GLEN_VOLK@AJG.COM
GBS HEALTHCARE ANALYTICS GROUP
LEAD ACTUARY
Glen has been the in -house Actuary for Gallagher Benefit Services, Inc. Boca Raton
office for the past 10 years. Glen provides actuarial support for all Gallagher clients and
has extensive experience within the Insurance industry. Glen provides support for all
the Public Entity clients in the Boca Raton office.
RA-01TZ612i1,04MI I INIII�'i
• Developing funding rates and reserves
• Reviewing stop -loss plans and rates.
• Filing required actuarial reports with regulators.
• Evaluating discounts offered by provider networks.
• Preparing retiree medical valuations
• Evaluating financial impacts of plan design changes.
• Providing Actuarial certifications as needed.
EXPERIENCE
✓ 27 years of Actuarial experience
• NHP's Chief Actuary at John Alden Life Insurance Company — 1992 to 2000
• Actuarial Consultant for Public Entities and Utilities — 1990 to 1992
• Assistant Vice President at Great American Reserve Insurance Company —
Dallas
• Confederation Life Insurance Company— Toronto, Canada
EDUCATION /CREDENTIALS
✓ B.S. in Mathematics from the University of Regina in Regina, Saskatchewan
✓ Masters degree in Applied Mathematics from the University of Waterloo in
Waterloo, Ontario
AFFILIATIONS
✓ Fellow of the Society of Actuaries (FSA)
Member of the American Academy of Actuaries (MAAA)
PAUL HEBERT, LLM, JD
AREA VICE PRESIDENT, COMPLIANCE
PAUL HEBERT @AJG.COM
561 - 998 -6746 OFFICE
LEAD COMPLIANCE CONSULTANT
Paul is an Attorney located in the Boca Raton office of Gallagher Benefit Services, Inc.
Paul's expertise is in employee benefits and retirement plans, including 403(b), 457 and
defined benefit plans.
KEY RESPONSIBILITIES
✓ Monitoring and evaluating legislation and laws impacting employers' benefit
programs.
✓ Providing education and interpretation of various federal and state laws and
regulations.
• Reviewing and monitoring ongoing contracts.
• Providing information on employee benefit issues
• Assisting with Retirement plans.
✓ 16 years as an attorney specializing in employee benefits and retirement
plans
✓ 16 years working with Public entities
✓ Private practice attorney
✓ Manager in Compensation and Benefits Practice of a Big Four accounting
firm
EDUCATION /CREDENTIALS
✓ Masters degree in the Laws of Taxation (LL.M), New York University
✓ J.D. with Tax Honors from Rutgers University
✓ B.A. from Vassar College
AFFILIATIONS
• Member of the Connecticut Bar Association
• Member of the Pennsylvania Bar Association
✓ Member of the New Jersey Bar Association
PROPOSED CALENDAR - CITY of SOUTH MIAMI, FL.
Service Plan — 2011/2012
201112012 PLANNING CALENDAR (SAMPLE)
City of South Miami Awards GBS as City of South Miami TBD
Consultant
New Client Orientation
GBS / City
TBD
Compliance Discussion
GBS / City
TBD
Renewal Strategy Discussion
GBS 1 City
TBD
Retiree Medical Discussion
GBS / City
TBD
COBRA Administration Review
GBS / City
TBD
Cost Projections for Renewal
GBS
TBD
Receive / Review / Negotiate Renewal
GBS / City
TBD
Finalize Plan Changes
GBS 1 City
TBD
Communications /Technology Review
GBS / City
TBD
Create / Update Open Enrollment Materials
GBS / City
TBD
Facilitate Open Enrollment Meetings
GBS / City
TBD
Finalize 2011 / 2012 Cost Projections
GBS
TBD
Post Open Enrollment / Client Service Plan
GBS / City
TBD
Wellness Discussion
GBS / City
TBD
Benchmarking Study
GBS
TBD
Disease Management Review
GBS
TBD
`M, Gallagher Benefit Services, Inc.
thinking ahead
PROPOSED CALENDAR - CITY OF SOUTH MIAMI, FL.
Service Plan — 2011/2012
2011/2012 PLANNING CALENDAR (SAMPLE)
Health Fair I GBS I TBD
Employee Surveys Discussion I GBS I City I TBD
Health Fair I GBS I TBD
Employee Surveys Discussion GBS / City TBD
Renewal Strategy Discussion GBS / City TBD
Cost Projections for Renewal GBS TBD
Finalize Plan Changes GBS / City TBD
Create / Update Open Enrollment Materials GBS / City TBD
Facilitate Open Enrollment Meetings GBS / City TBD
Finalize 2012 / 2013 Cost Projections GBS TBD
Gallagher Benefits' Team will work with the City's designated stakeholders to fully
detail each of these activities along with their target elutes.
� Gallagher Benefit Services, Inc.
thinking ahead
NON - COLLUSION AFFIDAVIT
Insurance Brokerage Services
STATE OF FLORIDA )
COUNTY OF MIAMI -DADE )
Jeff Angello being first duly sworn, deposes and
states that:
(1) He is the Area President
(Owner, Partner, Officer, Representative or Agent)
of the PROPOSER that has submitted the
attached BID; RFP No: SM -201 1 -08 -HR
(2) He is fully informed with respect to the preparation and contents of the attached BID and
of all pertinent circumstances concerning such BID;
(3) Such BID is genuine and is not a collusive or sham BID;
(4) Neither the said PROPOSER nor any of its officers, partners, owners, agents,
representatives, employees or parties in interest, including this affiant, have in any way
colluded, conspired, connived or agreed, directly or indirectly, with any other PROPOSER,
firm, or person to submit a collusive or sham BID in connection with the Work for which
the attached BID has been submitted; or to refrain from PROPOSING in connection with
such Work; or have in any manner, directly or indirectly, sought by agreement or collusion,
or communication, or conference with any PROPOSER, firm, or person to fix any overhead,
profit, or cost elements of the BID or of any other PROPOSER, or to fix any overhead,
profit, or cost elements of the BID Price or the BID Price of any other PROPOSER, or to
secure through any collusion, conspiracy, connivance, or unlawful agreement any advantage
against (Recipient), or any person interested in the proposed Work;
(5) The price or prices quoted in the attached BID are fair and proper and are not tainted by
any collusion, conspiracy, connivance, or unlawful agreement on the part of the PROPOSER
or any other of its agents, representatives, owners, employees or parties of interest,
including this affiant.
Signed, sealed and delivered in the presence of:
Signature
Jeff Angello, Area President
Print Name and Title
My Commission Expires: .20 „(
EAII_URE TO GOMP_LETE. SIGN_ R RETURN THIS FORM MAY DIRQUALILE ' YO.URRESPONCE
Insurance Brokerage Services RFP No. SM -201 1- 09 -1IR Page 22 of 25
SIGNATURE PAGE
Insurance Brokerage Services
The undersigned attests to his (h& tbeir) authority to submit this Submittal and to bind the
firm(s) herein named to perform as per agreement. Further, by signature, the undersigned
attests to the following:
1. The Proposer is financially solvent and sufficiently experienced and competent to perform
all of the work required of the Proposer in the Contract;
2. The facts stated in the Proposer's response pursuant to Request for Proposal, instructions
to Proposer and Specifications are true and correct in all respects;
3. The Proposer has read and complied with, and submits its proposal agreeing to all of the
requirements, terms and conditions as set forth in the Request for Proposals.
4. The Proposer warrants all materials supplied by it are delivered to the CITY of South
Miami, Florida, free from any security interest, and other lien, and that the Proposer is a
lawful owner having the right to supply the same and will defend the conveyance to the
CITY of South Miami, Florida, against all persons claiming the whole or any part thereof.
S. Proposer understands that if a team is short listed and selected to make oral presentations
to the selection committee and /or CITY, only the team members who were involved in the
preparation of the written submissions may participate in the oral presentations. Any
changes to the team at the oral presentations may, at the sole discretion of the City, result
in that Proposer's Bid disqualification.
6. The undersigned certifies that if the firm is selected by the City the firm will negotiate in
good faith to establish a Contract.
7. Proposer understands that all information listed above may be verified by the City of South
Miami and Proposer authorizes all entities or persons listed above to answer any and all
questions. Proposer hereby indemnifies the City of South Miami and the persons and
entitles listed above and holds them harmless from any claim arising from such investigation
and verification process, including the dissemination of information pursuant thereto.
ub itted o this -,9A day of j un2 20 11
(If an individu ,part ers ' rnon- incorporated organization)
Witness: Company -godtf li F. Defnet`f Ser��ces J
Printed: By . f' 4
Title: �f Rea n, $enoorConsat rint Name, Title.
(If a core ation, affix seal)
Company:
By:
Attested by Secretary Print Name, Title:
Incorporated under the laws of the State of
FAILURE TO COMPLETE. SIGN. & RETURN THIS FORM MAY DISQUALIFY YOUR RESPONSE
Insurance Brokerage Services RFP No. SM -201 1 -09 -HR Page 23 of 25
In response to the requested Certification ofAuthority, please
note that Arthur J. Gallagher & Co. (',IAJG'g ispublicly traded
an the NYSEP avdAvs andiadzed ift Area Nesidevis to -efferwte-
CERTIFICATION OF AUTHORITY
[To be completed and signed by a legal entity only. This Certification is not applicable to an individual Proposer]
Insurance Brokerage Services
STATE OF FLORIDA
COUNTY OF MIAMI -DADE
Corporation or
LLC
11 Partnership 11 LLP 11 Joint Venture
I HEREBY CERTIFY that a meeting of the Board of Directors, Partners, and /or Principals
(include DBA -Doing Business As, if applicable) of the following entity
an organization existing under the laws of the State of , was
held on 20 , and the following resolution was duly
passed and adopted:
"RESOLVED, that, as of the
organization, be and is hereby authorized to execute the Proposal dated, day of
20 , to the City of South Miami and this organization and that
my execution thereof, attested by a Notary Public of the State, shall be the official, act and deed
of this attestation"
I further certify that said resolution is now in full force and effect.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
corporation this, day of 20
Print Name
NOTARY PUBLIC:
SEAL
Signature
Notary Signature
Personally known to me, or
Personal identification:
Type of Identification Produced
FAILURE TO COMPLETE. SIGN. & RETURN THIS FORM MAY DISOUALIFY YOUR RESPONSE
Insurance Brokerage Services RFP No. SM- 2011 -09 -HR Page 22 of 25
a , REFERENCES
° "° ` `° " "° "' Insurance Brokerage Services
Please list three (3) governmental agency, or comparable corporate client, contract references
for which you have done business within the past three (3) years:
Agency Name: Palm Beach County Board of County Commissioners
ii West Australian Ave, Suite 200
Attach additional sheets if necessary.
FAILURE TO COMPLETE SIGN &RETURN THIS FORM MAY DISQUALIFY YOUR RESPONSE
Insurance Brokerage Services RPP No. SM -201 1 -09 -HR
Page 26 of 25
11:12IN i7 7'u1`�C�7►137 7u
Insurance Brokerage Services
I certify that any and all information contained in this RFP is true;' and I further certify 'that this
RFP is made without prior understanding, agreement, or connections with any corporation,
firm or person submitting a RFP for the same materials, supplies, equipment, or services and is
in all respects fair and without collusion or fraud. I agree to abide by all terms and conditions of
the RFP, and if the Proposer is a legal entity, I certify that I am authorized to sign for the
Proposer. Please print the following and sign your name where indicated below:
Firm's Name: Gallagher Benefit Services, Inc.
Principal Business Address: 2255 Glades Rd., Suite 400E
Boca Raton, Florida 33431
Telephone: 561-995-6706 Fax: 561-99a-670*
Name: �le� Ar42��o
Signature of
Authorized
Representative: .. r 4J
.:� 0 Q viva 61 P1011YA go] 0
NO CONFLICT OF INTEREST CERTIFICATION
Insurance Brokerage Services
The undersigned, as Bidder /Proposer, declares that the only persons interested in this RFP are
named herein; that no other person has any interest in this RFP or in the Contract to which
this RFP pertains; that this response is made without connection or arrangement with any
other person; and that this response is in every respect fair and made in good faith, without
collusion or fraud.
The Bidder /Proposer agrees that if this response /submission is accepted, to execute an
appropriate CITY document for the purpose of establishing a formal contractual relationship
between the Bidder /Proposer and the CITY, for the performance of all requirements to which
the response /submission pertains.
The Bidder /Proposer states that this response is based upon the documents identified by the
following number: Bid /RFP No. SM -201 1 -08 HR
The full -names and residences of persons and firms interested in the foregoing bid /proposal, as
princi
The Bidder /Proposer further certifies that this response /submission complies with Chapter 8(a)
of the Code of Ordinance, City of South Miami, Florida, that, to the best of its knowledge and
belief, no Commissioner, Mayor, or other officer or employee of the CITY has an interest
directly or indirectly in the profits or emoluments of the Contract, job, work or service to
which the response /submission pertains.
Signed, sealed and delivered in the presence of:
By:
Subscribed and sworn before me this
Sign ature
Jeff Angello, Area President
Name and
29 " day of June, 2011 NOTARYPUIITAC.5TAUOF17.0RmA
Linda 'Welta=
ic%.s,dlronccr JAW A2014
otary Public (Signature)
My Commission Expires: ,?114
CONE OF SILENCE AFFIDAVIT
Insurance Brokerage Services
The "Cone of Silence" specifically prohibits communication regarding RFP "S
(bids) or any solicitation with the City of South Miami staff except by written
means, with copy filed with the City Clerk. This takes effect upon
advertisement for Request for Proposal and terminates when the City Manager
makes his recommendation to the City Commission for the award. An
exception is made for oral communication during pre - proposal conferences. In
addition to any other penalties provided by law, violation of the Cone of Silence
shall render any proposal disqualified.
CITY OF SOUTH MIAMI DISCLOSURE AFFIDAVIT
Jeff Angello being first duly sworn, state: The full legal name and business address* of the person
or entity contracting or transacting business with the City of South Miami are:
Gallagher Benefit Services, Inc. at 2255 Glades Rd., Suite 400E, Boca Raton, Florida 33431.
If the contract or business transaction is with a corporation, the full legal name and business
address* shall be provided for each officer and director and each stockholder who holds
directly or indirectly five percent (5 %) or more of the stock in the corporation. If the contract
or business transaction is with a partnership, the full legal name and business address* shall be
provided for each partner. If the contract or business transaction is with a trust, the full legal
name and address* shall be provided for each trustee and each beneficiary.. If the contract or
business transaction is with an LLP or LLC, the full legal name and address* shall be provided
for each member of the LLP or LLC. All such names and addresses are: See Attached
The full legal names and business address* of any other individual (other) than subcontractors,
material men, suppliers, laborers, or lenders who have, or will have, any interest (legal,
equitable, beneficial or otherwise) in the contract or business transaction with the City of
South Miami are:
SECURITY OWNERSHIP BY CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The table below presents information concerning beneficial ownership of our common stock as of March 14, 2011 by:
(i) each person we know to be the beneficial owner of more than 5 % of our outstanding shares of common stock; (6) each of our
named executive officers, directors and director nominees; and (iii) all of our executive officers and directors as a group.
The percentage calculations in this table are based on a total of 110,068,504 shares of our common stock outstanding as of
March 14, 2011. Unless otherwise indicated below, to our knowledge, the individuals and entities named in the table have sole voting
and sole investment power with respect to all shares beneficially owned by them, subject to community property laws where
applicable. In addition, unless otherwise indicated, the address for all persons named below is c/o Arthur J Gallagher & Co., The
Gallagher Centre, Two Pierce Place, Itasca, Illinois 60143.
5% Stockholders
Capital Research Global Investors (3)
12,647,920
12,647,920
11.5%
333 South Hope Street
Los Angeles, CA 90071
BlackRock, Inc. (4)
7,517,922
7,517,922
6.8%
40 East 52 "d Street
New York, NY 10022
Capital World Investors (3)
6,000,000
6,000,000
5.5%
333 South Hope Street
Los Angeles, CA 90071
NEOs, directors and nominees
J. Patrick Gallagher, Jr.
652,544(5)
290,180
-
850,724
James W. Durkin, Jr.
276,372
129,686
59,482(6)
465,540
James S. Gault
62,689(7)
141,951
-
204,640
Douglas K. Howell
33,634
129,430
-
163,064
David E. McGurn, Jr.
131,055(8)
149,386
-
280,441
William L. Bax
16,023
18,750
2,803
37,576
Frank E. English, Jr.
11,762
18,750
1,483
31,995
Ilene S. Gordon
16,442
122,750
2,803
141,995
Elbert O. Hand
16,023
95,250
2,803
114,076
David S. Johnson
13,742
68,750
2,803
85,295
Kay W. McCurdy
15,442
33,249
2,803
51,494
Norman L. Rosenthal
9,022(9)
18,750
2,803
30,575
James R.Wimmer
22,182(10)
136,054
2,803
161,039
All directors and executive
officers as a group (17 people)
1,245,165
1,441,520
80,586
2,767,271
2.5%
mess man ino
(1) All non - employee director stock options are immediately exercisable upon a director's departure from the Board under most
circumstances, and are included because a director could depart the Board and acquire rights to the underlying stock within 60
days. Stock options granted to executive officers prior to 2007 are immediately exercisable upon the departure of an executive
officer that has reached the age of 55, and therefore, for these officers (Messrs. Gallagher, Durkin, Gault and McGurn), such
options are included because they could depart the company and acquire rights to the underlying stock within 60 days. Stock
options granted to executive officers beginning in 2007 are forfeited upon an officer's departure, and are included only to the
extent exercisable within 60 days pursuant to their vesting schedules.
K3
Notary Public
Signed, sealed and delivered in the presence of
Jeff Angello, Area President
Print Name and Title
NUTANY PUBLICA ATP OF nOIRMA
Subscribed and sworn to before me this 29`h day of June, 2011 "` Linda Welutan
Caunmisslan0DD95M
otary u is (Signature)
My Commission Expires: 2014
Gallagher Benefits will agree to work with the City of South Miami to
develop measurable deliverables within the scope of services, Gallagher
agrees to work on a fixed fee basis, but will be happy to discuss with the
City any other mutually agreeable payment arrangements such as
commissions on existing products and adjust our fees accordingly.
Additionally, any optional project will be accurately outlined, priced and
fully disclosed prior to the commencement of work.
Ongoing Consulting Services: $38,500.00 in annual fixed fees for
ongoing services as outlined in the Scope of Services section of the
RFP. If the City allows Gallagher to offer any type of voluntary
employee-pay plans, we will offset the above fee on a dollar-for-dollar
basis adjusted for expenses.
Optional Services - Pricing:
Actuarial Services: Single Project fees outside the scope of services
will be priced on a per project basis.
Member/Patient Advocacy Service: Fees for this service would be
$1.50 PEPM annually.
Optional Services — Pricing (continued):
COBRA Administration: $0.75* per employee enrolled in a COBRA-
eligible plan per month. There are one-time set-up fees of $75.00 for
the service and $90.00 per COBRA participant.
Flexible Spending Accounts: $3.75* per month per participant
including a debit card along with a one-time set-up fee of $1.50 per
card. Initial set -up fee forSPI)Iplan document is $300.00. Any
amendments priced on an as needed basis which typically runs
$150.00 each.
a QMSCO Administration: $5.00* per each processed Court Order
*Services / Prices are offered through a sole vendor as a package and
may very if selected separately.
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Benefits Overview
ABC Company is proud to offer a comprehensive benefits package to eligible, full -time employees who work 35
hours per week and have 6 months of service. "Ihe complete benefit package is briefly summarized in this booklet.
You will receive plan booklets, which give you more detailed information about each ofthcse programs.
You share the costs of some benefits (medical and dental), and ABC Company provides other benefits at no cost
to you (life, accidental death & dismemberment). In addition, there are volumary benefits with reasonable group
rates that you can purchase through ABC Company payroll deductions.
Y her b ncfii grlau otfe wra We:
�! Medical
Dental
K> Life Insurance
N Accidental Death & Dismemberment
(AD &D) Insurance
Flexible Spending Account (FSA)
Vision
'+ Voluntary life and AD &D
Higibility
You and your dependents are eligible for ABC Company
benefits on the first of the month following 6 mouths of
employment.
Eligible dependents are your spouse, unmarried children
under age 19, or 26 if they're a fill -time student, disabled
dependents of any age, or ABC Company eligible
dependents.
Elections made now will remain until the next open
enrollment unless you or your family members
experience a qualifying event. If you experience a
qualifying event, you mutt contact FIR within 45 days.
:Z
Medical Benefits
Administered by United Healthcare
Comprehensive and preventive healthcare coverage is important in protecting you and you, family from the
financial risks of unexpected illness and injury. A litdeprevention usually goes a longway— especially in healthcare.
Routine exams and regular preventive care provide an inexpensive review of your health. Small problems can
potentially develop into large expenses. By identifying the problems early, often they can he treated at little cost.
Comprehensive healthcare also provides peace of mind. In case of an illness or injury, you and your family are
covered with an excellent medical plan through ABC Company.
ABC Company offers you a choice of three (3) PPO medical plans.
With the PPO, you may select where you receive your medical services. If you use in- network providers, your costs
will be less.
i
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1
LIFETIME BENEFIT MAXIMUM
$00
$00 -
Annual Deductible
$00 Single/
$00 Single/
$00 Single/
r$00 Single/
$00 Family
$00 Family
'$00 Family
' $00 Family
Annual Out-of-pocket Maximum
$00 Single /...
$00 Single/
$00 Single/
$00 Single/
(includes deductible)
$00 Family
$00 Family
- $00 Family -
$00 Family
Coinsurance
DO%
00%
00%
00% .
DOCTOR'S OFFICE
Primary Care Office Visit
$00 repay
$00 coney
$00 Copay
$00 capay
Specialist Office Visit
$00 repay
$00 capay
$00 repay
$00 capay
(Including Urgent Care)
Wellness Care
00 %to$00 per
00%to$00 per
00 %to$00 per
00% to S00 per
(routine exams x lays %tests, im-
munizations, Well baby care and
calendar year; then
calendar year; then
calendar year; then
calendar year; then
mammograms)
00% after deductible
00% after deductible
00% after deductible
00% after deductible
PRESCRIPTION DRUGS
Retail— Generic Drug
$00 Copay or 00%
$00 Copay or 00%
$00 Copay or 00%
$00 Copay or 00% -
(34 -day supply)
of cost,
of cost,
of cost,
of cost,
whichever is greater
whichever is greater
whichever is greater
whichever is greater
Retail— Formulary Drug
$00 Copay of 00%
$00 Copay or 00%
$00 Copay of 00%
$00 Copay or 00%
(34 -day supply)
of cost,
of cost,
of cost,
of cast,
whichever is greater
whichever is greater
whichever is greater
whichever Is greeter
Retail— Non - Formulary Drug
$00 Copay or 00%
$00 Copay or 00%
$00 Caney or 00%
$00 Copay or 00%
(34 -day supply)
of cost,
of cost,
of cost,
of cost,
whichever Is greater
whichever is greater
whichever is greater
whichever is greater
Mail Order— Generic Drug
$00
$00
(90 -day supply)
Mail Order — Formulary Drug
$00
$00
(90 -day supply)
Mail Order— Non - Formulary Drug
$00
$00
(90 -day supply)
HOSPITAL SERVICES
.. _
$oD Copay then 00%
$00 Copay, then Oos
&00 Copay, then DO%
$90 Copay, then 00%
Emergency Room
I after geductible;—
after Deductible
after Oetluctihle;
after Deductible;
waived d admitted
waived ii admitted
waived fl admitted
waived It admitted
Standard Plan Value Plan
j1n.NatWqxk. on of N - etworX
'P_PQ PPP
HOSPITAL SERVICES (CONTINUED)
Emergency Post-Stabilization
Services
00% after Deductible
00% after Deductible
00% after Deductible
00% after Deductible
Hospital Deductible
00% after Deductible
00% after Deductible
00% after Deductible
00% after Deductible
Inpatient
00% after Deductible
00% after Deductible
00% after Deductible
00% after Deductible
Outpatient Surgery
00% alter Deductible
00% alter Deductible
00% after Deductible
00% after Deductible
Ambulance Service
00% alley Deductible
00% alter Deductible
00% after Deductible
00% after Deductible
Mental Health Services
Inpatient Services
15-day calendar year maximum
00% after Deductible
00% after Deductible
00% after Deductible
00% alter Deductible
30-day lifetime maximum
Outpatient Services
20-visit calendar year maximum
00% after Deductible
00% after Deductible
00% after Deductible
00% after Deductible
100 -visit lifetime maximum
Substance Abuse Services
Inpatient Services
15-day calendar year maximum
00% after Deductible
00% alter Deductible
00% after Deductible
80% after Deductible
30-day lifetime maximum
Outpatient Services
20-visit calendar year maximum
00% alter Deductible
00% after Deductible
00% after Deductible
00% after Deductible
100 -visit lifetime maximum
OTHER SERVICES
Maternity Services
00% alter Deductible
00% after Deductible
00% after Deductible
00% alter Deductible
All other maternity hospital/
physician services
00% after Deductible
00% after Deductible
00% after Deductible
00% after Deductible
Muscle Manipulation Services
$500 annual maximum benefit
00% after Deductible
00% after Deductible
00% after Deductible
00% after Deductible
$250 annual x-ray maximum
Physical, Occupational and
Speech Therapy Services
00% after Deductible
00% after Deductible
00% after Deductible
00% after Deductible
TMJ and Related Services
$2,000 lifetime maximum benefit
00% after Deductible
00% after Deductible
00% after Deductible
00% after Deductible
Skilled Nursing
120-day calendar year maximum
00% after Deductible
00% after Deductible
00% after Deductible
00% after Deductible
Other Services
(Artificial limbs and other pros-
thetic devices; blood and blood
components; leg, arm and neck
00% after Deductible
00% alter Deductible
00% after Deductible
00% after Deductible
braces; surgical dressings; casts
and splints)
Voluntary Dental Benefits
Administered by United Healthcare
Good oral care enhances overall physical health, appearance and mental well - being. Problems with the teeth and
gums arc common and easily created health problems. Keep your teeth healthy and your smile bright with the
ABC Company dental benefit plan.
Life and Accidental Death & Dismemberment Insurance
Insured by Lincoln Financial
Liter tnsllitlncr.
Life insurance provides financial Security for the people who depend on you. Your beneficiaries will receive a lump
sum payment if you die while employed by ABC Company. The company provides basic life insurance of $10,000
at no cost to you if you participate in the medical plans offered by ABC Company.
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Accidental Death and Dismemberment (AD &D) insurance provides payment to you or your beneficiaries if you
lose a limb or die in an accident, ABC Company provides AD &D coverage of $10,000 at no cost to you. This
coverage is in addition layout company -paid life insurance described above if you participate in the medical plans
offered by ABC Company.
FSA
Administered by United Healthcare
Healthcare Spending Limit $00
Dependent Care Spending Limit $00
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Voluntary Vision Insurance
Administered by VSP
Regular eye examinations can not only determine your need for corrective eyewcar but also may detect general
health problems in their earliest stages. Protection for the eyes should be a major concern to everyone.
Yom cove ",ule, front a VSP doctor:
No need for an ID card. To take advantage ofyma VSP vision benefit, simply contact a VSP provider and
let them know you have VSP covcragc —they handle the paperwork for you.
Voluntary Life and AD &D Insurance
Insured by Lincoln Financial
You may purchase life and AD &D insurance in addition to the cmnpauy- provides{ coverage. You may also
purchase life and AD &D insurance for your dependents if you purchase additional coverage for yourself. You are
guaranteed coverage (tip to $000 or five times your salary, and up to $000 for your Spouse) without answering
medical questions if you enroll when you are first eligible.
Employee— Up to five times your salary in increments of $000; 3000 maximum amount
Spouse— Up to $000 in increments of $000
Children— $000
Contact Information
If you have specific questions about a ABC; Company benefit plan, please contact the administrator listed below,
or your local human resourees department,
Employee Contributions for Benefits