MURIEL BOWSER
MAYOR
December 20, 2022
The Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Pursuant to section 451 of the District of Columbia Home Rule Act (D.C. Official Code 1-
204.51) and section 202 of the Procurement Practices Reform Act of 2010 (D.C. Official Code 2-
352.02), enclosed for consideration and approval by the Council of the District of Columbia is
proposed Modification No. M0007 to Contract No. CW76721 with Kaiser Foundation Health Plan
of the Mid-Atlantic States, Inc., to exercise option year four in the not-to-exceed amount of
$120,989,146.58. The period of performance is from January 1, 2023, to December 31, 2023.
Under the proposed contract, Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc., will
continue to provide and administer health insurance plans and prescription drug coverage for
employees of the District of Columbia government, their eligible dependents, and retirees.
I am available to discuss any questions you may have regarding the proposed contract. In order to
facilitate a response to any questions you may have, please have your staff contact Marc Scott,
Chief Operating Officer, Office of Contracting and Procurement, at (202) 724-8759.
I look forward to the Councils favorable consideration of this contract.
Sincerely,
Muriel Bowser
Enclosure
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of Contracting and Procurement
Pursuant to section 202(c-3) of the Procurement Practices Reform Act of 2010, as amended, D.C.
Official Code 2-352.02(c-3), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(Options)
(A) Contract Number: CW76721
Proposed Contractor: Kaiser Foundation Health Plan of The Mid-Atlantic
States, Inc.
Contract Amount (Option Period Four): Not-to-exceed (NTE) $120,989,146.58
Term of Contract: January 1, 2023, through December 31, 2023
Type of Contract: Indefinite Delivery/Indefinite Quantity,
based on Fixed Unit Prices
(B) Identifying number of the underlying contract, including the identifiers assigned to the
underlying contract by the Council for the base period and any subsequent option periods:
Base Period Amount: $0
The contractor began transition services during the base period at no cost to the District.
Option Period One Amount: NTE $84,878,364.48
Council Approval Legislation #: CA23-0385
Explanation of difference from base period (if applicable): The contract amount for option
period one differs from the base period amount since the base period was the transition period and
at no cost.
Option Period Two Amount: NTE $97,546,904
Council Approval Legislation #: CA23-0752
Explanation of difference from base period (if applicable): The contract includes language that
allows the contractor to submit revised fixed unit prices for all option periods that are reviewed and
approved by the agency prior to option exercise.
Option Period Three Amount: NTE $119,048,027.26
Council Approval Legislation #: CA24-0355
Explanation of difference from base period (if applicable): The contract includes language that
1
 allows the contractor to submit revised fixed unit prices for all option periods that are reviewed and
approved by the agency prior to option exercise.
Option Period Four Amount: NTE $120,989,146.58
Explanation of difference from base period (if applicable): The contract includes language that
allows the contractor to submit revised fixed unit prices for all option periods that are reviewed and
approved by the agency prior to option exercise.
(C) A statement 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):
The contractors Citywide Clean Hands report was received on October 7, 2022, and indicates no
outstanding liabilities with the District.
(D) A statement 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:
The D.C. Department of Human Resources Chief Financial Officer has certified that funds are
available for option period four.
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 Government of the District of Columbia
Office of the Chief Financial Officer 1101 4th Street, SW
Office of Tax and Revenue Washington, DC 20024
Date of Notice: October 7, 2022 Notice Number: L0008264956
KAISER FOUND HLTH PLN MID ATL STS INC FEIN: **-***4463
1 KAISER PLZ # 15L Case ID: 1312506
OAKLAND CA 94612-3610
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
CO
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 of Clean 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)
PY
47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Marc Aronin
Chief, Collection Division
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) 724-5045/MyTax.DC.gov
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE CHIEF FINANCIAL OFFICER
Glen Lee
Chief Financial Officer
MEMORANDUM
TO: Todd Allen
Supervisory Contract Specialist / Contracting Officer
Office of Contracting and Procurement
FROM: Glen Lee
Chief Financial Officer
DATE: November 8, 2022
SUBJECT: 2023 Certification of Available Funds for Health Insurance Contract
The Districts share of premiums (75% of the coverage) for the fourth year of the health plan contracts
is estimated at $386,443,256. Based on estimates using current enrollment data and premium levels,
this statement is to certify that $289,832,442 is available to fund the health insurance contracts
CW76699; CW76697; CW76695 and CW76721, respectively, with Aetna, UnitedHealth Care,
Carefirst, and Kaiser Permanente for the District of Columbia Employees Health Benefits (DCEHB)
program from January 1, 2023, through September 30, 2023. For the remaining period of the contract,
October 1, 2023, through December 31, 2023, the District will seek budget authority through the FY
2024 appropriation in the amount of $96,610,814. Premiums are based on the coverage selected by
the employee, with 75 percent of the cost paid by the District and 25 percent of the cost paid by the
employee. The total maximum contract amount for the four health insurance companies is estimated
at $515,257,675. The maximum contract amount assumes an enrollment of 29,481 employees. The
Districts cost of health insurance premiums is included in Object Class 14, which is part of each
agencys budget for active employees. The employees cost will be deducted from their paychecks.
Aetna, United Health Care, Carefirst,
Vendor and Kaiser Permanente
CW76699; CW76697; CW76695; and
Contract Number CW76721
Contract Option/Modification Year 4
FY 2023 - From 1/1/2023 to 9/30/2023
and FY 2024 - From 10/1/23 to
Certified Amount 12/31/23 $ 515,257,675
If there are any questions regarding this matter, please feel free to contact Samuel Terry, Director,
Financial Planning, Analysis, and Management Services, Office of Budget and Planning, at 202-724-
7477.
John A. Wilson Building * 1350 Pennsylvania Avenue, N.W. * Suite 203 * Washington, D.C. 20004
Phone: (202) 727-2476 * Fax: (202) 727-1643 * www.cfo.dc.gov
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE CHIEF FINANCIAL OFFICER
Glen Lee
Chief Financial Officer
CERTIFICATION OF THE AVAILABILITY OF FUNDING
FOR THE HEALTH INSURANCE CONTRACTS
FOR POST-SEPTEMBER 30, 1987 DISTRICT EMPLOYEES
FOR THE PERIOD JANUARY 1, 2023 THROUGH SEPTEMBER 30, 2023
And
FOR THE PERIOD OCTOBER 1, 2023 THROUGH DECEMBER 31, 2023
The Districts share of premiums (75% of the coverage) for the fourth year of the health plan
contracts is estimated at $386,443,256. Based on estimates using current enrollment data and
premium levels, this statement is to certify that $289,832,442 is available to fund the health
insurance contracts CW76699; CW76697; CW76695 and CW76721, respectively, with Aetna,
UnitedHealth Care, Carefirst, and Kaiser Permanente for the District of Columbia Employees
Health Benefits (DCEHB) program from January 1, 2023 through September 30, 2023. For the
remaining period of the contract, October 1, 2023 through December 31, 2023, the District will
seek budget authority through the FY 2024 appropriation in the amount of $96,610,814. Premiums
are based on the coverage selected by the employee, with 75 percent of the cost paid by the District
and 25 percent of the cost paid by the employee. The total maximum contract amount for the four
health insurance companies is estimated at $515,257,675. The maximum contract amount assumes
an enrollment of 29,481 employees. The Districts cost of health insurance premiums is included
in Object Class 14, which is part of each agencys budget for active employees. The employees
cost will be deducted from their paychecks.
Please certify the availability of funding by signing below:
November 8, 2022
Glen Lee Date
Chief Financial Officer
John A. Wilson Building * 1350 Pennsylvania Avenue, N.W. * Suite 203 * Washington, D.C. 20004
Phone: (202) 727-2476 * Fax: (202) 727-1643 * www.cfo.dc.gov
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE CHIEF FINANCIAL OFFICER
Office of Budget and Planning
Eric Cannady
Deputy Chief Financial Officer
MEMORANDUM
TO: Glen Lee
Chief Financial Officer
FROM: Eric M. Cannady
Deputy Chief Financial Officer
DATE: November 8, 2022
SUBJECT: Certification of Availability of Funding: District of Columbia Employees
Health Insurance Contract for the Period of January 1 through December
31, 2023
The D.C. Department of Human Resources (DCHR) and the Office of Contracting and
Procurement (OCP) have requested that the Chief Financial Officer certify that funds are
available to pay for new health insurance contracts for post-September 30, 1987 District
employees for the period of January 1, 2023 through December 31, 2023.
I recommend that you sign the certifications based on (1) agencies past ability to absorb the
costs and (2) sufficient budget authority District-wide in comptroller source group 14 (Fringe
Benefits) to cover predicted expenditures. However, I want to raise awareness of the cost
implications.
Conclusion
Funds are sufficient within the Districts FY 2023 and anticipated FY 2024 fringe benefit
budgets to pay for health benefit costs associated with post-September 30, 1987 District
employees. Health benefit costs continue to increase each year. However, I do not believe the
District will face a spending pressure in this area.
Background and Assumptions
The District of Columbia Employees Health Benefits (DCEHB) program covers eligible
employees who were hired on or after October 1, 1987. DCEHB currently enrolls 29,481
District employees. The District pays 75 percent of the health insurance premium for employees
in the DCEHB, and employees pay the other 25 percent. The ratio is constant no matter which
health insurance carrier the employee chooses.
Post-September 30, 1987 employees who retire are eligible to continue their health insurance
benefits. The District continues to pay up to 75 percent of the insurance premium, with the
John A. Wilson Building * 1350 Pennsylvania Avenue, N.W. * Suite 229 * Washington, D.C. 20004
Phone: (202) 727-6234 * Fax: (202) 724-5222 * www.cfo.dc.gov
Certification of Availability of Funding: D.C. Employees Health Benefits Insurance Contract Changes for
January 1 through December 31, 2023
Page 2
employee paying the remainder. The Districts share of the premiums is paid from a District of
Columbia trust fund.
In November 2019, the District entered into seven new contracts with new premium structures.
In January 2023, premiums will increase for all ongoing plans. The District offers their
employees four Health Maintenance Organization (HMO) options (Kaiser Permanente, Aetna,
Carefirst, and United Choice Plus), two Preferred Provider Organization (PPO) options (Aetna
and Carefirst), and the Consumer-Driven Health Plan (CDHP) option (Aetna). All dollar figures
provided in this memo are for the District's share of the overall premiums in the DCEHB, except
as noted.
Bi-weekly employer costs and enrollment data for this analysis were provided by DCHR. Cost
estimates for the new contracts have been calculated using 29,481 enrollees, the number of
employees currently enrolled.
The number of enrollees in each option is based on the following assumptions as provided by
DCHR:
- Of the current enrollees, 64.2 percent are enrolled in HMO, 32.6 percent are enrolled in
PPO, and 3.2 percent are enrolled in CDHP;
- Within the HMO plans, the percentage of enrollees in each tier is 49/21/30 (self, self + 1,
and family, respectively);
- Within the PPO plan, the percentage of enrollees in each tier is 55/20/25 (self, self + 1,
and family, respectively); and
- Within the CDHP plan, the percentage of enrollees in each tier is 67/16/17 (self, self + 1,
and family, respectively).
Analysis Results
Premium Cost per Subscriber (per Bi-Weekly)
Premium changes for FY 2023 will range from 0.9 percent for the Kaiser Permanente HMO
options to an increase of 11.4 percent for the Aetna HMO plan (see table 1). The estimates for
the analysis are calculated using the number of employees that are projected to be enrolled with
each plan and type of insurance.
Certification of Availability of Funding: D.C. Employees Health Benefits Insurance Contract Changes for
January 1 through December 31, 2023
Page 3
Table 1: Cost Increases in Health Insurance Plans, 2023 over 2022
Employer cost (Bi-Weekly, per
subscriber)
CY 2022 CY 2023 Percentage
Plan Type Coverage type (Actual) (Proposed) increase
Self $302.54 $337.03 11.4%
Aetna Self + 1 $594.70 $662.49 11.4%
Self & Family $874.26 $973.92 11.4%
Self $248.50 $250.70 0.9%
Kaiser
Health Self + 1 $474.64 $478.84 0.9%
Permanente
Maintenance Self & Family $728.08 $734.53 0.9%
Organization Self $284.34 $309.65 8.9%
(HMO) UHC - Choice Self + 1 $543.09 $591.43 8.9%
Self & Family $833.12 $907.27 8.9%
Carefirst (Blue Self $259.81 $282.47 8.7%
Cross / Blue Self + 1 $511.82 $556.47 8.7%
Shield) Self & Family $750.84 $816.34 8.7%
Consumer Self $116.20 $128.28 10.4%
Driven Health Aetna Self + 1 $228.39 $252.15 10.4%
Plan (CDHP) Self & Family $335.77 $370.69 10.4%
Self $294.63 $315.55 7.1%
Preferred Aetna Self + 1 $579.16 $620.28 7.1%
Provider Self & Family $851.42 $911.88 7.1%
Organization Carefirst (Blue Self $293.40 $313.97 7.0%
(PPO) Cross / Blue Self + 1 $560.39 $599.68 7.0%
Shield) Self & Family $859.65 $919.93 7.0%
Compared to October 2021, the estimated number of enrollees in October 2022 increased by
1,669 (see table 2).
Table 2: Enrollment Shifts Across Plans, Current Enrollment Compared to Last Year
Enrollment (Self, Self +1 and Family