Life and Disability Insurance

CITY OF MADISON
REQUEST FOR PROPOSALS
RFP #: 15001-0-2026-BG
Title: Life and Disability Insurance
City Agency: Human Resources Division
Due Date: Monday, August 31st, 2026
2:00 PM Central Time
Our Madison - Inclusive, Innovative, & Thriving

REQUEST FOR PROPOSALS RFP 15001-0-2026-BG
1 OPPORTUNITY AND WELCOME
Thank you for your interest in bidding on a City of Madison contract opportunity. The City's mission is to
provide the highest quality service for the common good of our residents and visitors.
The City of Madison Human Resources Division is seeking proposals from qualified vendors for Basic Life
and AD&D, Voluntary Life and AD&D, along with Wage Insurance (Short Term Disability, and Long Term
Disability insurance).
Objectives
City of Madison seeks a vendor to provide Basic Life and AD&D, Voluntary Life and AD&D, Short Term
Disability, and Long Term Disability insurance for their employees and retirees. The proposer will match
or propose an enhancement for all benefits and provide alternatives where requested.
The City has not conducted a request for proposals for the referenced lines of coverage for some time.
The City is seeking to assess the marketplace to evaluate long term carrier partnerships along with
potential enhancements to coverage, service, and overall value for employees at a competitive and cost-
effective price.
Background and Current Program Overview
The City of Madison has offered life insurance benefits since 1976 and wage (disability) insurance
benefits since 1970, reflecting a long-standing commitment to financial protection for employees and their
families. These programs have collectively resulted in millions of dollars in benefits paid to employees
and retirees over time and remain a critical component of the City's total rewards strategy.
Under the current program:
* Employees are offered basic life insurance, multiple levels of supplemental life coverage, and
dependent life coverage on a voluntary basis for most members
* Wage insurance provides income replacement of up to 65% of regular salary for
non-work-related illness or injury, covering both short- and long-term disability events funded by a
mix of employee and employer funds
* Certain program features, including premium structures and eligibility rules, reflect legacy design
decisions that predate current industry standards
The City's incumbent carrier for these benefits is The Hartford.
Equity, Workforce Impacts, and Strategic Review
In preparation for this RFP, the City undertook a Wage & Life Equity Analysis in 2024, following
requests from multiple employee affinity and advisory groups to review existing plan structures through an
equity lens. The analysis included participation from a diverse cross-section of employees, labor
representatives, and City departments, and examined plan participation, premium structures, sick leave
interaction, and claims experience.
Key themes identified through this review included:
* Disproportionate impacts of legacy premium calculation methodologies across gender, race, and
compensation groups
* Administrative complexity and communication challenges associated with current premium and
eligibility structures
* Opportunities to modernize plan administration, reporting, and employee communication
* The importance of vendor responsiveness, clarity, and minimal administrative barriers-
particularly for mental health-related claims
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REQUEST FOR PROPOSALS RFP 15001-0-2026-BG
While this RFP does not necessarily predetermine specific benefit design changes, the City seeks
proposers who can demonstrate:
* Experience supporting large, diverse public-sector workforces
* Flexibility and transparency in plan design and administration
* Commitment to equitable service delivery and clear employee communication
* Proven claims administration practices that prioritize accuracy, timeliness, and accessibility
Additional Program Context and Needs Assessment
In addition to the historical and equity-focused review summarized above, the City of Madison undertook
a comprehensive Life & Wage Insurance Needs Analysis to further evaluate the effectiveness,
sustainability, and administrative performance of its current insured programs and to identify priorities for
future carrier relationships.
This review was conducted to complement the 2024 Wage & Life Equity Analysis and focused on
operational performance, claims administration, vendor service models, benefit accessibility, and
long-term program viability across a large, diverse public-sector workforce.
Life Insurance Program - Additional Context
The City's life insurance program is a core component of its total rewards strategy and includes:
* Employee life insurance based on multiples of salary
* Voluntary dependent life coverage
* Retiree life insurance with age-based reductions and post-65 continuation features
* Embedded value-added services supporting beneficiaries, estate planning, and survivor
assistance
The Needs Analysis reinforced the importance of financially stable carriers, timely and accurate claims
adjudication, and high-touch service models that support employees and beneficiaries during sensitive
life events.
Key considerations highlighted through this review include:
* The need for rapid life claim payment with proactive communication to beneficiaries
* Strong service guarantees, dedicated account management, and multiple customer service
access channels
* Clear, easily understood enrollment materials and decision-support tools
* High guarantee-issue thresholds to minimize underwriting barriers for employees and dependents
* Portability and conversion options that are clearly communicated and competitively priced
The review also identified opportunities to:
* Simplify dependent eligibility definitions to align with common administrative standards
* Reduce administrative friction associated with retiree coverage and premium collection
* Enhance employee understanding of coverage options and outcomes through improved
communication and education materials
These findings reinforce the City's interest in proposers who can combine benefit expertise with strong
operational execution and participant-centric service delivery.
Wage (Disability) Insurance Program - Additional Context
The City's wage insurance program provides short- and long-term income replacement protection and is
closely integrated with the City's sick leave policies and workforce management practices.
The Needs Analysis emphasized the importance of:
* Claims administration consistency and transparency, particularly in complex or long-duration
claims
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REQUEST FOR PROPOSALS RFP 15001-0-2026-BG
* Clear disability definitions, predictable adjudication timelines, and well-defined appeal processes
* Robust support for mental health-related disabilities, including parity in claim handling and
access to appropriate resources
* Integration with absence management functions, including coordination with FMLA and
return-to-work planning
Operational priorities identified include:
* Proactive case management and early engagement with claimants
* Clear communication of claim decisions and rationale
* Data analytics and reporting to support program oversight, trend analysis, and continuous
improvement
* Benchmarked performance metrics to assess approvals, denials, and duration trends
The analysis also identified structural complexities in the current wage insurance design, including
interactions with sick leave utilization and legacy cost-sharing methodologies, that may warrant future
evaluation. While this RFP does not mandate specific design changes, the City values carriers who can
provide thoughtful analysis, clear modeling, and practical guidance regarding potential
enhancements or alternatives.
Alignment with Equity and Workforce Objectives
Findings from the Needs Analysis were viewed in conjunction with the 2024 Wage & Life Equity Analysis
to better understand how plan design, administration, and communication impact employees across
demographic, income, and job-class distinctions.
Collectively, these efforts underscored the importance of:
* Minimizing administrative and procedural barriers to benefit access
* Ensuring consistency and clarity in claims administration
* Providing transparent reporting and responsive service
* Supporting equitable outcomes through design flexibility and communication clarity
The City seeks a carrier partner that can demonstrate not only technical competence, but also a
commitment to equity-aligned service delivery, continuous improvement, and long-term
partnership.
Procurement Objectives
The objectives of this RFP include:
* Evaluating the insurance marketplace for potential enhancements to coverage, administration,
and service
* Ensuring continuity of critical benefits for employees and retirees
* Identifying carriers capable of meeting the City's unique administrative and retiree continuation
requirements
* Obtaining competitive, sustainable pricing while maintaining high service standards
* Supporting the City's broader goals related to equity, transparency, and operational excellence
The City encourages thoughtful, well-supported proposals that address both current program
requirements and opportunities for improvement, consistent with the scope and constraints outlined in this
RFP.
Thank you for considering this opportunity to work with the City and further our mission!
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REQUEST FOR PROPOSALS RFP 15001-0-2026-BG
2 IMPORTANT INFORMATION
DEADLINE FOR PROPOSALS: Monday, August 31st, 2026 at 2:00 PM Central Time.
The City will not accept late proposals. Any changes to the deadlines will be posted as an addendum on
the bid distribution websites listed below. See Section 3.1 for instructions for using these websites.
RFP NAME: Life and Disability Insurance
DEADLINE FOR The deadline for questions is Friday, July 31st, 2026 at 2:00 PM Central
ROUND 1 OF Time. Questions and/or inquiries must be submitted by email.
QUESTIONS:
CITY'S ROUND 1 The City's answers to your questions will be posted as an addendum by
OF ANSWERS Friday, August 7th, 2026. You must check the bid distribution websites for
any addendums.
POSTED BY:
DEADLINE FOR The deadline for questions is Friday, August 14th, 2026 at 2:00 PM Central
ROUND 2 OF Time. Questions and/or inquiries must be submitted by email.
QUESTIONS:
CITY'S ROUND 2 The City's answers to your questions will be posted as an addendum by
OF ANSWERS Friday, August 21st, 2026. You must check the bid distribution websites for
any addendums.
POSTED BY:
DUE DATE FOR Monday, August 31st, 2026
PROPOSALS: 2:00 PM Central Time
BID DISTRIBUTION https://vendornet.wi.gov/Bids.aspx
WEBSITES: https://www.demandstar.com/
Brittany Garcia
Purchasing Services
210 Martin Luther King, Jr. Blvd. Room 407 City-County Building
CONTACT
Madison, WI 53703-3346
INFORMATION:
Phone: (608) 608-243-0529
Email: bids@cityofmadison.com
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REQUEST FOR PROPOSALS RFP 15001-0-2026-BG
Table of Contents
1 OPPORTUNITY AND WELCOME .................................................................................................... i
2 IMPORTANT INFORMATION .......................................................................................................... iii
3 HOW TO FIND RFP DOCUMENTS AND CONTACT THE CITY OF MADISON ............................ 3
Official Bid Distribution Websites - IMPORTANT ............................................................... 3
Contact Information ............................................................................................................. 3
4 OUR PURCHASING VALUES ......................................................................................................... 4
Local Preference Purchasing Policy ................................................................................... 4
Equity in Contracting ........................................................................................................... 4
Equitable Hiring & Affirmative Action Plan .......................................................................... 4
Limitations on Nuclear Weapons Producers ....................................................................... 4
Sweatfree Purchasing ......................................................................................................... 4
5 SCOPE OF WORK AND REQUIRED INFORMATION ................................................................... 5
General Requirements ........................................................................................................ 5
5.1.1 Benefits ................................................................................................................... 6
5.1.2 Licensure ................................................................................................................ 8
5.1.3 Central Point of Contact ......................................................................................... 8
5.1.4 Transition Meetings ................................................................................................ 8
5.1.5 Booklets and Phone Number .................................................................................. 8
5.1.6 Filing Claims ........................................................................................................... 8
5.1.7 Status Quo Plan Design & Alternate Plan Designs ................................................ 8
Basis for Selection and Evaluation Criteria ....................................................................... 19
5.2.1 Overall Evaluation Framework ............................................................................. 19
5.2.2 Technical Proposal Evaluation (65 Points) ........................................................... 19
5.2.3 Cost Proposal Evaluation (30 Points) ................................................................... 19
5.2.4 Local Vendor Preference (5 Points) ..................................................................... 20
5.2.5 Interviews (If Conducted) ...................................................................................... 20
5.2.6 Final Scoring and Award ...................................................................................... 20
6 HOW TO SUBMIT YOUR PROPOSAL ......................................................................................... 21
Proposal Checklist ............................................................................................................ 21
Submit your Proposal by the Deadline.............................................................................. 21
Format ............................................................................................................................... 22
Questions .......................................................................................................................... 22
Addendum (Changes or Clarifications to this RFP) .......................................................... 22
Multiple Proposals ............................................................................................................. 22
Changing or Withdrawing your Proposal .......................................................................... 22
Correcting Errors in your Proposal after the Due Date ..................................................... 22
No Exceptions from Bidders ............................................................................................. 23
You are Responsible for all of your Costs in Making a Proposal ...................................... 23
Public Records and Trade Secrets ................................................................................... 23
7 RULES FOR THE SELECTION PROCESS .................................................................................. 24
8 LEGAL CONTRACT REQUIREMENTS ........................................................................................ 25
Sample Contract ............................................................................................................... 25
Affirmative Action Requirements for Contractors .............................................................. 25
Insurance .......................................................................................................................... 26
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REQUEST FOR PROPOSALS RFP 15001-0-2026-BG
Sample Contract
Form A - Price Proposal Form (excel spreadsheet) and Signature Affidavit
Form B - References
Form C - Vendor Profile
Form D - Insurance Questionnaire
Exhibit A - City of Madison Premium Rate Report (Jan 2021 - April 2026)
Exhibit B - City of Madison Life Claims listing through 6/30/2024 (Jan 2019 - Jun 2024)
Exhibit C - City of Madison Experience Report (Jan 2021 - April 2026)
Exhibit D - 2025 BVLF Rider (child benefit increase) Hartford
Exhibit E - 2025 BVLF Rider (dependent children) Hartford
Exhibit F - City of Madison - Life Booklet
Exhibit G - City of Madison - LTD & STD Booklet
Exhibit H - City of Madison Renewal Letter Updated 4.16.24
Exhibit I - 2022 COM Renewal
Exhibit J - COM Employee Handbook
Exhibit K - COM Life Insurance Information (Updated as of 7/1/2025)
Exhibit L - 2024 Wage Life Equity Analysis Report
Exhibit M - City of Madison Needs Analysis
Exhibit N - Duty Disability Riders - Police & Fire
Exhibit O - City of Madison - Experience Rating Agreement
Exhibit P - Active Census with Sick Leave
Exhibit Q - Retiree Life census
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REQUEST FOR PROPOSALS RFP 15001-0-2026-BG
3 HOW TO FIND RFP DOCUMENTS AND CONTACT THE CITY OF MADISON
Official Bid Distribution Websites - IMPORTANT
The City of Madison posts all requests for proposals (RFPs), addendums, updates, awards, and
announcements on two websites: VendorNet and DemandStar. Both sites are free to register for City of
Madison bids.
These two websites are the only places to get the official RFP and updates to the RFP.
Updates and addendums will only be posted on these websites. It is your responsibility to check the
websites for updates and "addendums." An addendum is a document that answers questions from
bidders. It could make important changes to the RFP. If the addendum requires a response, and you
fail to respond to it, you could be disqualified.
State of Wisconsin State of Wisconsin and local government bid network. Registration is
VendorNet System free. Search for City of Madison in the Agency search field.
VendorNet link https://vendornet.wi.gov/Bids.aspx
DemandStar by Onvia National bid network. Free subscription is available. Sign up for the
free "Basic Plan" and select Wisconsin Association for Public
Procurement (WAPP) as the agency to access City of Madison RFPs.
DemandStar link https://www.demandstar.com/app/agencies/wisconsin/city-of-madison-
purchasing-services/procurement-opportunities/573ff565-ce2b-4c75-
86ec-401cd5abf736/
Register on DemandStar www.demandstar.com/app/registration
Contact Information
City of Madison Purchasing Brittany Garcia
Contact (Buyer) Purchasing Services
210 Martin Luther King, Jr. Blvd. Room 407 City-County Building
Madison, WI 53703-3346
PH: (608) 608-243-0529
bids@cityofmadison.com
Questions about Affirmative Contract Compliance, Department of Civil Rights
Action Plans 210 Martin Luther King, Jr. Blvd. Room 523 City-County Building
Madison, WI 53703
PH: (608) 266-4910
dcr@cityofmadison.com
Email note Some email to the City gets lost in "spam."
If you send the City an email and you do not hear back within 3 days,
please call the Buyer at (608) 608-243-0529.
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REQUEST FOR PROPOSALS RFP 15001-0-2026-BG
4 OUR PURCHASING VALUES
Local Preference Purchasing Policy
The City of Madison gives preference to local vendors and suppliers. You must be registered with the City
as a local vendor by the RFP due date to get preference points. Learn more and register at the City of
Madison website: www.cityofmadison.com/finance/purchasing/local-businesses/register-business/
If you are a local vendor, be sure to complete the Local Vendor section on Form C.
Equity in Contracting
The mission of the City of Madison is to provide the highest quality service for the common good of our
residents and visitors. The City's values include
* Equity - fairness, justice and equal outcomes for all, and
* Shared prosperity - where all are able to achieve economic success and social mobility.
It is our goal to spend money equitably, including among businesses owned by women, people of color,
and small businesses. Our contractors should reflect shared dedication to equity in their work and
employment practices, and we invite you to become part of this mission!
Equitable Hiring & Affirmative Action Plan
Affirmative Action Plan The City of Madison values diversity in hiring and contracting. We expect our
contractors to do the same. Contractors with 15 or more employees and more than $50,000 in annual
contracts with the City (each calendar year) must submit an Affirmative Action Plan.
Information about the Affirmative Action Plan and how to comply is found here:
https://www.cityofmadison.com/civil-rights/contract-compliance/affirmative-action-plan/vendors-suppliers
Or call the Affirmative Action Division at (608) 266-4910.
See Section 13. B. of the Sample Contract for Affirmative Action Plan requirements.
Job Openings in Dane County You must notify the City of openings for jobs in Dane County, Wisconsin
if you have 15 or more employees. You must agree to interview candidates that we refer to you through
our Referrals and Interviews for Sustainable Employment (RaISE) program. Information is here:
http://www.cityofmadison.com/civil-rights/programs/referrals-and-interviews-for-sustainable-employment-
raise-program
The job posting requirement is found in Section 13 A. of the Sample Contract.
Limitations on Nuclear Weapons Producers
It is the City's policy not to make purchases from companies that produce nuclear weapons, or their
subsidiaries. See Common Council Resolution 79719 for more information.
Sweatfree Purchasing
It is the City's policy not to purchase apparel (clothes made from textiles, shoes, footwear) from vendors
who source their materials from sweatshops, where labor practices are inconsistent with international
standards of human rights. See Madison General Ordinances Section 4.25
(https://library.municode.com/wi/madison/codes/code_of_ordinances?nodeId=COORMAWIVOICH1--
10_CH4FI_4.25PRITAP) for more information.
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REQUEST FOR PROPOSALS RFP 15001-0-2026-BG
5 SCOPE OF WORK AND REQUIRED INFORMATION
General Requirements
Project Overview
The City intends to use the results of this Request for Proposals (RFP) to award a contract for group
Basic Life and AD&D, Voluntary Life and AD&D, Short Term Disability, and Long Term Disability for City
of Madison employees and retirees as applicable.
The City wishes to contract with insurance carrier(s) commencing July 1, 2027.
Proposals must include rate guarantee terms for all coverages that meet the following requirements:
* A firm rate guarantee of no less than three (3) years is required for all coverages
* Proposals offering rate guarantees longer than three (3) years are strongly preferred
In addition:
* If proposals include rate guarantee periods longer than three (3) years, proposers are requested
to provide "not-to-exceed" rate increase provisions for Years 4 and 5, where available
The contract resulting from this RFP will be administered by City of Madison, Human Resources
Department
The contract administrator will be Victoria Larson. The City agent is M3 Insurance Solutions Inc. This
RFP is issued on behalf of City of Madison by the Purchasing Division, which is the sole point of
contact for the City during the procurement process.
Covered Group
Active employees- The City currently has approximately 3,103 Active employees, 230 Early Retirees and
1,232 Post 65 retirees
Current Operations
The City of Madison currently offers a life insurance program based on multiples of salary for employees
and flat dollar amounts for dependents. Dependents are defined as children up to age 26 along with
spouses until age 65. This coverage is primarily funded by employees with coverage being provided at no
cost for active employees aged 70 or older. Life insurance is also available for retirees subject to age
reductions. Accidental Death and Dismemberment benefits are included in the existing contract but are
not currently being offered to employees or dependents. Evidence of insurability is not needed for
elections made within 31 days of eligibility and is required for all increases outside of that period.
Premiums are based on age groupings.
The City of Madison provides wage insurance in the form of short and long-term disability coverage, also
known as income continuation insurance. This program is funded by a mix of employer and employee
money dependent on use of sick leave in the prior 12-month calculation period and accumulated sick
leave balance. Sick leave must be exhausted prior to benefits being payable under the wage insurance
offerings. Taxation of benefits is impacted by the source of the premium. The short-term plan offers a
weekly benefit of 65% of pre-disability earnings or $1,875. Short term disability benefits are payable after
sick leave has been exhausted on the 1st day for injury and the 8th day for sickness and are payable for
up to 156 weeks. The long-term disability plan pays out a 65% benefit to a monthly maximum of $8,175.
Benefits are payable after a 156-week elimination period and are paid until Social Security Normal
Retirement Age.
Tax Treatment of Benefits
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