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Brokerage Services for CBIZ Employee Services Organization
43.
Based on the information provided and the services requested, what is your proposed annual fee? Please
make certain to identify any services mentioned in your proposal that are not included in your proposedfee
(services that would be an additional expense- please include relevant ratecard)
CBIZ proposes the following two compensation structures:
a)
If PIKE decides to utilize the Oracle self-service enrollment platform:
$3.30 per eligible employee per month. No commission will be paid on any of the core benefit
programs insuring the lowest net cost to Pike.
b.
If PIKE elects to utilize the Hodges Mace SmartBen communications, call center and enrollment
platform:
To CBIZ - $3.30 per eligible employee per month
To Hodges Mace
i.
If Hodges Mace SmartBen conducts a new voluntary benefit offering as part of the
annual enrollment and receives commission and overrides for same, their fee is $1.90
per eligible employee per month
ii.
If there are no voluntary commissions and or overrides paid, their fees are shown on
the attached proposal
c.
Dependent Eligibility Audit (DEA) Significant savings and a compelling ROI are projected for PIKE if a
Dependent Eligibility Audit is approved and conducted. Assuming 6000 dependents (spouses and children) the
cost of the audit would be $54,000 ($9 per dependent). Assuming a 5% ineligible find, projected savings
would be $1,047,000 or a claim reduction of $3,490 per dropped dependent. This produces a ROI of 19 to 1. If
a DEA has never been conducted in the past the ROI would move to 38 to 1 at a $54,000 cost assuming a 10%
find (see attached).
This would be an additional cost as we would use Hodges Mace to conduct the DEA.