Title
Voluntary Legal Insurance Plan Vendor Recommendation (Ordinance S-44973)
Description
This report requests City Council approval to enter into a contract with ARAG Legal Services to provide employee and retiree voluntary legal insurance plan benefits. Further request authorization for the City Controller to disburse all funds related to this item. There is no impact to the General Fund. The costs for these services are paid by monthly payroll deductions from eligible employees who enroll in the plan during the annual open enrollment process.
Report
Summary
The City issued a Request for Proposals (RFP) on May 21, 2018 seeking proposals for a voluntary legal insurance provider for employees and retirees. Three vendors submitted proposals: ARAG Legal Services, MetLife/Hyatt Legal Plans, and U.S. Legal Services. The evaluation committee found ARAG Legal Services (ARAG), the incumbent, to be the vendor who can provide the most desirable combination of services and premiums.
Procurement Information
The RFP requested, but did not require, the proposals include a two-plan option to include a comprehensive plan and a lower premium option to make the benefit more affordable for the lower income employees and retirees.
Evaluation occurred by a committee composed of the Benefits Administrative Assistant II, the Senior Benefits Analyst who is the current legal plan liaison, the Human Resources Department Administrative Assistant II, and the Vice President of the City of Phoenix Retiree Association (COPRA) Board.
The committee scored the proposals based on Qualifications & Experience (250 points), Method of Approach (350 points), and Price (400) for a total of 1,000 possible points. Consensus scoring occurred which resulted in these scores:
ARAG Legal Services: 933.75
MetLife/Hyatt Legal Plans: 640
U.S. Legal Services: 472.50
The committee recommends ARAG, the incumbent, for these reasons:
- Attorneys are credentialed and rated individually on an annual basis.
- ARAG has a robust website with hundreds of online resources.
- Welcome packets and a summary plan description are mailed to enrollees.
- ARAG offered a two-plan option retaining the current comprehensive plan and a budget-friendly plan which offers 100 percent coverage of all the most commonly used services and other services not offered by other offerors.
- Social Security Numbers are not required as identification numbers which was required by MetLife/Hyatt Legal Plans.
- No implementation or transition required.
Contract Term
The contract term will be three years, starting Jan. 1, 2019. Provisions of the contract will include an option to extend the term for up to two years, in one-year increments, which may be exercised by the City Manager, or his designee.
Financial Impact
There is no impact to the General Fund. The costs for these services are paid by monthly payroll deductions from eligible employees who enroll in the plan during the annual open enrollment process.
Department
Responsible Department
This item is submitted by Acting Deputy City Manager Toni Maccarone and the Human Resources Department.