TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 4, 2025
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Authorization to enter into an agreement for Contract 25-RFP-03 Dental Plan Administrator, with Health Care Service Corporation, a Mutual Legal Reserve Company, operating through its Blue Cross and Blue Shield of Illinois Division, for a three-year period, effective January 1, 2026 to December 31, 2028, Account 101-25000-601250 (As Revised)
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Dear Sir:
Authorization is requested to enter into an agreement with Health Care Service Corporation, a Mutual Legal Reserve Company, operating through its Blue Cross and Blue Shield of Illinois Division (BCBSIL), to provide a self-insured dental Preferred Provider Organization (DPPO) plan and a fully-insured Dental Maintenance Organization (DMO) plan for employees for a three-year period.
On April 23, 2025, Contract 25-RFP-03 Dental Plan Administrator was publicly advertised. The purpose of this contract was to select a qualified carrier to provide dental insurance coverage for active employees. The program will include a DPPO option and a DMO option. The plan design including the deductibles, co-insurance, and annual benefit maximum will remain the same as under the current program. The services are currently provided by Health Care Service Corporation, a Mutual Legal Reserve Company, operating through its Blue Cross and Blue Shield of Illinois Division (BCBSIL). The current contract expires December 31, 2025.
On May 23, 2025, the District received three (3) responsive proposals. These proposals were submitted by Aetna Life Insurance Company, BCBSIL, and Delta Dental of Illinois.
The proposals were evaluated by consultants from Deloitte Consulting, LLP and staff of the Human Resources and Procurement and Materials Management Departments. The criteria for the evaluation were outlined in Contract 25-RFP-03 and included: organizational stability and experience; ability to administer the current plan design; network size and quality; claims administration performance; member service performance; administrative performance; and financial considerations.
Following the preliminary evaluation of proposals, excluding cost, all three proposers were deemed to be finalists and were invited to interviews conducted July 10, 2025, and July 11, 2025. On July 22, 2025, a solicitation was sent to the finalists requesting an unqualified “best and final” offer. The “best and final” offers were returned to the Director of Procurement and Materials Management on July 28, 2025.
Based on the evaluation of the proposals using the criteria described above and the pricing provided in the “best and final” offer, it is recommended that a contract be awarded to BCBSIL to provide a self-insured dental Preferred Provider Organization (DPPO) plan and a fully-insured Dental Maintenance Organization (DMO) plan for employees. The BCBSIL dental plan has the largest national PPO provider network including more than 6,000 dentists in Illinois. The network results in 99.9% of employees having access to at least two dentists within 10 miles of their home. The BCBSIL plan is utilized by more than 10,700 Illinois employers, including the City of Chicago. The plan provides participants with a secure member portal and mobile app. In addition to providing easy access to claims history and member ID information, the portal includes a Dental Wellness Center. Resources include a provider finder with quality ratings, a dental cost calculator, an ask a dentist feature, and a dental dictionary. The plan engagement strategy includes communication and support programs with additional wellness benefits for members with chronic conditions such as diabetes or health disease and for expectant mothers.
The Diversity Section reviewed the request for proposal to determine if Affirmative Action Ordinance Revised Appendix A and Appendix V goals will apply. The Diversity Section noted that the services being solicited are to be performed by a single carrier, which will provide all products and services under the plan. As such, the contract does not provide practical opportunities for subcontracting. Therefore, Appendix A and the Appendix V were not included in the request for proposal.
In view of the foregoing, it is requested that the Director of Procurement and Materials Management be authorized to enter into an agreement with BCBSIL to provide a self-insured dental Preferred Provider Organization (DPPO) plan and a fully-insured Dental Maintenance Organization (DMO) plan for employees for a three-year period from January 1, 2026 through December 31, 2028.
Funds for 2026, 2027 and 2028 are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Thaddeus J. Kosowski, Director of Human Resources, TJK:JEF
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 4, 2025
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