Statement of Qualifications for Designation as Consulting Actuary ...

Statement of Qualifications for Designation as Consulting Actuary1.1 General InformationThe Board of Directors of the Illinois Comprehensive Health InsurancePlan (“CHIP” or the “Plan”) is soliciting the services of a qualified firm toprovide actuarial analysis and consulting services to the Plan, includingincurred claims analysis, development of premium rates, financialprojections and other research and analysis on specified topics. Theseservices would be provided under a monthly retainer paid by the Plan. Afirm interested in bidding for designation as CHIP’s consulting actuaryshall submit by 4:00 p.m. on Tuesday 31 January 2012 a statement ofqualifications as required by Section 1.6 and fee proposals as required bySection 1.7. The Board will evaluate the bidder’s qualifications.1.2 Scope of Work to be PerformedThe services covered by the monthly retainer provided for in Section 1.1include the following:Incurred Claims Analysis - review the Lag Study reports from theBoard’s plan administrator and pharmacy benefit manager eachmonth and provide the Board with a written summary by pool four (4)times per year. These reports would coincide with such activities asdeficit projections and quarterly claim reserve estimates.Premium Calculations - rate table development by plan for the semiannualCHIP Plan renewals. In addition, work with the Department ofInsurance staff in a timely re-survey of the market to identify thelargest carriers, and obtaining their rates.Financial Projections and Other Analysis – provide financialprojections, including monthly cash flow summaries and fiscal yearpool deficits, and such other analysis as requested by the Board foreach pool at a level of at least quarterly, with increased activityexpected for the CHIP plan budget submission and other legislative orpolicy proposals.Research and Analysis – perform research and analysis on specifiedtopics as requested by the Board or the Executive Director. Informthe Executive Director of the documentary basis used in performingthe research and analysis, particularly concerning the annualassessment.Meetings - attend in person at least two (2) but no more than a total often (10) meetings of the Actuarial Advisory Committee, FinanceCommittee, and CHIP Board, and preparation of necessarysupporting analysis for all meetings of these groups. Be available to

(5) Whether the bidder understands the process by which a high riskpool, particularly CHIP, calculates premium rates and projectsdeficits.(6) Whether the bidder has general familiarity with the Affordable CareAct of 2010 (ACA) and is willing to provide actuarial assistance tothe Pre-Existing Condition Insurance Plan established pursuant tothe ACA in Illinois, the Illinois Pre-Existing Condition InsurancePlan.1.7 FeesA bidder shall provide fee proposals that should include a schedule ofprofessional fees and expenses that supports the total all-inclusive pricefor the 22-month contract. The successful bidder shall submit invoices forservices rendered plus travel expenses incurred for the previous month foreach pool on a monthly basis.1.8 General Evaluation CriteriaThe criteria for selection of the successful bidder are both objective andsubjective. Cost, technical competence, experience, service capabilities,personnel, and reputations, among other items, will be considered; butnone of these will provide the sole basis for any contract award.1.9 Issue Date and ScheduleThe bidding and qualification evaluation process will proceed inaccordance with the following timetable:Tuesday 17 January 2012 Solicitation ReleasedTuesday 31 January 2012(4:00 p.m. CDT)Deadline for Receipt ofBidsWednesday 15 February 2012 Notification of ContractAwardMonday 27 February 2012 Finalized ContractualLanguageThe Board reserves the right to change any or all of the dates listed in thistimetable. All responsive bidders will be notified in writing of any suchchanges. The award shall be contingent upon successful negotiation ofthe final contract. Bidders must agree to finalize contract language by nolater than 27 February 2012.1.10 Submission

No later than 4:00 p.m., CDT, on 31 January 2012, please submit yourstatement of qualifications and fee proposals together with an executedsignature page (attached) to:Timothy C. Sullivan, Executive DirectorIllinois Comprehensive Health Insurance Plan320 West Washington Street, Suite 700Springfield, IL 62701-1150Telephone (217) 782-6333Facsimile (217) 782-6468E-Mail Tim_Sullivan@chip.state.il.usThe response may be submitted by hand delivery or mail, including e-mail.

SIGNATURE PAGEThis Statement of Qualification is submitted on behalf of the proposedConsulting Actuary identified below this _____ day of _____________,2012.____________________________(Actuarial Firm’s Name)____________________________(Officer/Official)____________________________(Title)____________________________(Date)