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December 19, 2024
The Honorable Phil Mendelson
Chairman, Councilofthe District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, N.W.
Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Enclosed for consideration and approval by the Councilofthe District of Columbia is
Contract No. NFPHC-HR-25-C-00001 between the Not-for-Profit Hospital Corporation
and CareFirst BlueChoice Inc. for employee health benefits to be received by the Not-for-
Profit Hospital Corporation (“Contract”).
Council action is necessary to approve the proposed Contract in the amount of
$4,157,191.08 for the period January 1, 2025 to December 31, 2025.
‘As always, I am available to discuss any questions you may have regarding this
submittal. Inorder
to facilitate aresponse
toany questions you may have, please have your
staffcontact me at (202) 574-6611. I look forward to a favorable consideration on this
contract
Sincerely,
aur Koyue~Bordon
iequeline Payne-Borden
ChiefExecutive Officer
Not-for-Profit Hospital Corporation
Enclosure
1910SOUTHERN AVENUE, SE WASHINGTON,
D.C. 20032-4623 + 202-574-6000 + WWWLUNITED-MEDICALCENTER.COM
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of Contracting and Procurement
Pursuant to section 202(c) of the Procurement Practices Reform Act of 2010, as amended,
D.C. Official Code § 2-352.02(c), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(Standard and multiyear)
(A) Contract Number: NFPHC-HR-25-C-00001
Proposed Contractor: CareFirst BlueChoice Inc
Contract Amount: $4,157,191.08
Unit and Method of Compensation: Bi-weekly premiums per participant and payroll
deductions based on the coverage levels selected by
employees
Term of Contract: January 1, 2025 to December 31, 2025
Type of Contract: Fixed Fee
Source Selection Method: Competitive Procurement
(B) For a contract containing option periods, the contract amount for the base period and
for each option period. If the contract amount for one or more of the option periods
differs from the amount for the base period, provide an explanation of the reason for
the difference:
Base Period Amount: $4,157,191.08 (January 1, 2025 to December 31, 2025)
(C) The goods or services to be provided, the methods of delivering goods or services, and
any significant program changes reflected in the proposed contract:
The Not-For-Profit Hospital Corporation (NFPHC or Hospital) has an ongoing requirement
for a contractor to provide high quality, cost effective and accessible health insurance to its
employees. NFPHC pays the premium amount for all plans offered and NFPHC Employees
reimburse NFPHC via payroll deductions.
The Hospital has worked with its insurance brokerage to estimate the enrollment numbers
for each of the plans that are being offered. To allow for any variation from these estimates,
the Hospital is requesting approval for the total estimated premium amount of
$4,157,191.08.
The goal of the 2025 medical benefits Contract was to continue to offer NFPHC employees
the similar medical plan options with premium and deductible alternatives. The CareFirst
cost share that was offered to UMC is the same percentage split as in 2024.
To account for the pending closure during the policy year, the parties have agreed to a new
providing whereby the term and monthly estimated payments may be adjusted downward
based on the hospital closure schedule and hospital staffing adjustments, and the policy may
be cancelled with 30 days’ notice.
The social impact of the proposed contract is the NFPHC’s continued ability to provide
quality health (medical) benefits to the employees of the only District hospital east of the
Anacostia River. Council approval will allow NFPHC to recruit and retain a high quality
workforce as well as maintain a healthier group of employees which decreases overall
absenteeism, increases productivity and improves the overall quality of life for the
employees of this District instrumentality.
(D) The selection process, including the number of offerors, the evaluation criteria, and the
evaluation results, including the price and technical components:
Each year the NFPHC’s insurance broker was charged with obtaining the most competitive
price for the provision of health benefits to NFPHC’s employees. This year, the broker
conducted comprehensive marketing effort. The goal of the 2025 medical benefits Contract
was to continue to offer NFPHC employees the similar medical plan options with premium
and deductible alternatives.
The agreed upon rates for calendar year 2025 will become effective on January 1, 2025, if
Council approval is obtained. NFPHC will provide actual enrollment numbers at the
conclusion of the open enrollment period, which took place from November 5-15, 2024.
Rates are re-determinable based on utilization and actual enrollment, but the premium, and
therefore NFPHC portion, will remain the same.
Core Benefits 1-Jan-24 1-Jan-24 1-Jan-25 1-Jan-25
Renewal Monthly Renewal Monthly
Carriers Total Enrolled Cost Renewal Yearly Cost Total Enrolled Cost Renewal Yearly Cost
CareFirst
Medical 181 $183,910.00 $2,206,920.00 141 $155,926.53 $1,871,118.36
110 $151,158.51 $1,813,902.12 121 $184,778.16 $2,217,337.92
Total Medical 291 $4,020,822.12 261 $4,157,191.08
2
(E) A description of any bid protest related to the award of the contract, including
whether the protest was resolved through litigation, withdrawal of the protest by the
protestor, or voluntary corrective action by the District. Include the identity of the
protestor, the grounds alleged in the protest, and any deficiencies identified by the
District as a result of the protest:
There is no protest associated with this contract.
(F) The background and qualifications of the proposed contractor, including its
organization, financial stability, personnel, and prior performance on contracts with
the District government:
CareFirst offers the widest coverage and the largest network for Medical, Dental and Vision
insurance in Maryland, Washington, D.C. and Northern Virginia. Since 1929, Blue Cross
has led the healthcare industry by rising to the challenges that change brings, enabling new
discoveries and continuing to evolve. CareFirst provides affordable and accessible health
insurance to the plan’s insured and those persons insured or issued health benefit plans by
affiliates or subsidiaries of the plan, assist and support public and private health care
initiatives for individuals without health insurance and promote the integration of a health
care system that meets the health care needs of all the residents of the jurisdictions in which
the nonprofit health system service plan operates.
(G) A summary of the subcontracting plan required under section 2346 of the Small,
Local, and Disadvantaged Business Enterprise Development and Assistance Act of
2005, as amended, D.C. Official Code § 2-218.01 et seq. (“Act”), including a
certification that the subcontracting plan meets the minimum requirements of the Act
and the dollar volume of the portion of the contract to be subcontracted, expressed
both in total dollars and as a percentage of the total contract amount:
CareFirst BlueChoice Inc does not have a subcontracting plan associated with this contract.
Last year’s diligent work with DSLBD to identify a qualified CBE yielded no results. In
light of such outcome, a waiver request for CY2025 was sent to DSLBD on December 17,
2024.
(H) Performance standards and the expected outcome of the proposed contract:
The Contractor's performance will be monitored by the Not-for-Profit Hospital Corporation
Interim CEO and Director of Human Resources. The performance standards are as outlined
in the proposed Contract and as required by applicable local, federal, industry, and licensing
entities. The expected outcome of this contract is to have the Contractor’s services provided
to the Hospital in an efficient, competent and cost-effective manner.
(I) The amount and date of any expenditure of funds by the District pursuant to the
contract prior to its submission to the Council for approval:
N/A
3
(J) A certification that the proposed contract is within the appropriated budget authority
for the agency for the fiscal year and is consistent with the financial plan and budget
adopted in accordance with D.C. Official Code §§ 47-392.01 and 47-392.02:
See enclosed fiscal certification from the OCFO.
(K) A certification that the contract is legally sufficient, including whether the proposed
contractor has any pending legal claims against the District:
See enclosed legal certification from UMC Counsel.
(L) A certification that Citywide Clean Hands database indicates that the proposed
contractor is current with its District taxes. If the Citywide Clean Hands Database
indicates that the proposed contractor is not current with its District taxes, either: (1) a
certification that the contractor has worked out and is current with a payment
schedule approved by the District; or (2) a certification that the contractor will be
current with its District taxes after the District recovers any outstanding debt as
provided under D.C. Official Code § 2-353.01(b):
See enclosed Clean Hands Certification.
(M) A certification from the proposed contractor that it is current with its federal taxes, or
has worked out and is current with a payment schedule approved by the federal
government:
The proposed contractor has certified its compliance.
(N) The status of the proposed contractor as a certified local, small, or disadvantaged
business enterprise as defined in the Small, Local, and Disadvantaged Business
Enterprise Development and Assistance Act of 2005, as amended; D.C. Official Code §
2-218.01 et seq.:
The Contractor is not a certified local, small or disadvantaged business enterprise.
(O) Other aspects of the proposed contract that the Chief Procurement Officer considers
significant:
All relevant aspects of the proposed Contract are enclosed.
(P) A statement indicating whether the proposed contractor is currently debarred from
providing services or goods to the District or federal government, the dates of the
debarment, and the reasons for debarment:
As of November 18, 2024, the Contractor does not appear on the District or Federal
Excluded Parties List.
(Q) Any determination and findings issues relating to the contract’s formation, including
any determination and findings made under D.C. Official Code § 2-352.05
(privatization contracts):
4
None.
(R) Where the contract, and any amendments or modifications, if executed, will be made
available online:
Due to the hospital’s pending closure, the website will not undergo further upgrades; however,
the contract remains available onsite.
(S) Where the original solicitation, and any amendments or modifications, will be made
available online:
Due to the hospital’s pending closure, the website will not undergo further upgrades; however,
the contract remains available onsite.
5
* Government ofthe District ofColumbia
*
*
MEE (Office of the Chief Financial Officer 1101 4% Street, SW
— Ee Washington, DC 20024
Date of Notice: September 30, 2024 Notice Number: 0012666412 =
CAREFIRST BLUECHOICE INC FEIN: **-***8219,
10455 MILL RUN CIR Case ID: 18216401
OWINGS MILLS MD 21117-4208
CERTIFICATE
OFCLEANHANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code § 47-2862, therefore
this Certificate ofClean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE § 47-2862 (2006)
§ 47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Melinda Jenkins
Branch Chief, Collection and Enforcement Administration
To validate this certificate, please visit MyTax.DC.gov. On the MyTax DC homepage, click the
“Validate a Certificate of Clean Hands” hyperlink under the Clean Hands section.
1101 4th Street SW, Suite W270, Washington,DC 20024/Phone: (202) 724-S048/MyTax.DCgov
Government of the District of Columbia
Office of the Chief Financial Officer
MEMORANDUM
To: Jacqueline Payne-Borden, Chief Executive Officer
CC: Kendrick Dandridge, Contracting Officer
From: Lilian Chukwuma, CFO – Not-for-Profit Hospital Corporation
Date: December 17, 2024
Re: Contract No. NFPHC-HR-25-C-00001 between the Not-for-Profit-Hospital-
Corporation and CareFirst BlueChoice Inc
The Not-for-Profit Hospital Corporation (NFPHC) intends to contract with CareFirst
BlueChoice Inc for employee health benefits to be received by the Not-for-Profit Hospital
Corporation (“Contract”). For the full calendar year (January 1, 2025 to December 31, 2025)
the total annual cost is $4,157,191.08. However, the term and monthly estimated payments may
be adjusted downward based on the hospital closure schedule and hospital staffing adjustments,
and the policy may be cancelled with 30 days’ notice.
The Office of the Chief Financial Officer hereby certifies that the funds are included in the
NFPHC FY 2025 budget.
UMC
ITE
Nar Cae ee ge CU)
MEMORANDUM
To: Jacqueline Payne-Borden
Chief Executive Officer
Kendrick Dandridge
Contracting Officer
From: BricGoulet 51) ALS
General Counsel
Reference: Contract No. NFPHC-HR-25-C-00001 between the Not-for-Profit-
Hospital-Corporation and CareFirst BlueChoice Inc.
Date: December 18, 2024
Subject: Legal Sufficiency
Thave reviewed the above-reference Contract No. NFPHC-HR-25-C-00001 between the
Not-for-Profit Hospital Corporation and CareFirst BlueChoice Ine for employee health
benefits to be received by the Not-for-Profit Hospital Corporation.
Thereby certify that it appears to be legally sufficient. Please be advisedthat my finding
is premised on the Contract being submitted to and approved by the Councilofthe
District of Columbia.
1310 SOUTHERN AVENUE, SE WASHINGTON, D.C. 20032-4623 + 202-574-6000 + WWW-UNITED-MEDICALCENTER.COM
Acknowledgement and Approval of Insured to Bind Coverage
NFPHC hereby acknowledges receipt and review of the information in this renewal policy dated
January 1, 2025, for Policy #67175 Employee Medical and pharmacy Benefits, Blue Choice
HMO Access, Option K and Blue Choice Advantage PPO for an approximate total annual
premium of $4,157,191.08.
The payment schedule for the January 1, 2025, to December 31, 2025, policy year is:
Approximate $346,432.59 is Due No Later Than January 31, 2025.
The remaining approximate balance is Due in 11 monthly reporting installments with the
following payments due No Later Than:
February 28, 2025 – Approximately $346,432.59
March 31, 2025 – Approximately $346,432.59
April 30, 2025 – Approximately $346,432.59
May 31, 2025 – Approximately $346,432.59
June 30, 2025 – Approximately $346,432.59
July 31, 2025 – Approximately $346,432.59
August 31, 2025 – Approximately $346,432.59
September 30, 2025 – Approximately $346,432.59
October 31, 2025 – Approximately $346,432.59
November 30, 2025 – Approximately $346,432.59
December 31, 2025 – Approximately $346,432.59
The actual installment due will be calculated based on employees that enroll or terminate on/off
the plan on a monthly reporting basis.
ACH to:
CareFirst BlueCross BlueShield
Enrollment Premium
Account Number 67175
Group Number 5802856,5802858
_____________________________ ____________ _________________
Authorized Representative Date Time
Not-For-Profit Hospital Corp / United Medical Center