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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! a ?.s �y 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? FA 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.) WM 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. NIA 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. AIP,C (4-m plad,; i} iY } 1t V n< F t h 3 v ) 1 � l N t [[ s x � L h1 , f < t .a s fvl 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 i s S y�tl l 4 i�1�i ¢{� SYy 4gy ',+ . o �� > 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. It .i €ieni,'d Cte Nh awl ffist {ailrnh oi1eml (ADO) IikStamc;c 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 �`tilf { j11 IV y`.,f. {; i (ti;ty; 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