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Identification

Reference Number: 22041660
Request ID:18-108511
Date First Offered11/20/2017
Title:CY2018 MA-PD Plans Annual Rate Renewal - Aetna, Humana B/B, Unitedhealthcare

Agency Reference Number:18-108511
Agency:CMS - Central Management Services
Purchasing Agency:CMS - Central Management Services
Purchasing Agency SPO:Ellen Daley; Amy Adams; Tom Sestak

Status: Closed

Overview

Description and Specifications:
In 2014, CMS began offering Medicare Advantage plans with prescription drug coverage to annuitants and survivors in the State Employees Group Insurance Program, the Teachers Retirement Insurance program, and the College Insurance Program. In FY 2013, CMS awarded four contracts: one to Aetna, two to Humana (Humana Benefit Plan and Humana Benefit Plan formerly known as Humana Health Plan), and one to UnitedHealthcare. These contracts were awarded as result of an RFP issued under IPB# 22030665. Aetna and Humana offer HMO plans. UnitedHealthcare offers a PPO plan. CMS is seeking to renew these contracts for CY2018 to reflect the annual negotiated per member rates. CMS is satisfied with the services provided by these vendors.

The contracts provide for annual adjustment to the per member per month premium rates based upon verified demographics, other documented actuarial factors and projected health care cost trends. The contracts allow for rate negotiations annually under the initial term and for each renewal term.

The vendors of these plans receive revenue from the federal government in order to operate the plan. In order to maximize federal revenue, the State offers these plans on a calendar year basis to retirees. The estimated value of all four contracts for CY2018 is approximately $390,186,009.

Key Information

Notice Type:Contract Renewal
Published:12/04/2017
Notice Expiration Date:12/18/2017
Professional & Artistic:No
Small Business Set-Aside:No
Does this solicitation contain a BEP or DBE requirement?:No
Does this solicitation contain a Veteran requirement?:No
Relevant Category:Employee Benefits
Length of Renewal Term:12
Contract Begin Date:01/01/2018
Contract End Date:12/31/2018
Remaining Renewal Terms:4
Contract Renewal
Cost of Initial Term:$978,777,371.00 (Total Dollar Amount of Initial Term)
Cost of this Renewal:$390,186,009.00 (Total Dollar Amount of Renewal)
Renewal Increase/Decrease:Increase. The estimated value of increase will depend upon actual enrollment in the plan.
Change in Specifications:No
Renewal Number:2 of 6

Vendor(s) Selected for Award
Vendor NameAmount of Award BEP Goal % DBE Goal %
UnitedHealthcare$365,147,049.000%0%
Humana Benefit Plan CIBFHUMANA$481,074.000%0%
Humana Benefit Plan CIBFHUMAN1$9,090,608.000%0%
Aetna Life Insurance Company$15,467,278.000%0%

Notice Contact
Name: Michael Underwood
Street Address:801 S. 7th Street
City:Springfield
State:IL
Zip Code:62703
Phone: 217-558-1831
Fax Number:217-524-1660
EMail Address:michael.r.underwood@illinois.gov

Class Code

Class Codes:

NIGP Code

NIGP Commodity/Service Code:953 48 Health/Hospitalization (Including Dental and Visual Insuranc...
953 80 Retirement Benefit Plan Insurance
958 56 Health Care Management Services (Including Managed Care Serv...


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