Montebello City Council
October 14, 2026

b. All data, documents, discussion, or other information developed or received by the CONSULTANT or provided for performance of this Agreement are deemed confidential and shall not be disclosed by the CONSULTANT without prior written consent by the CITY. The CITY shall grant such consent if disclosure is legally required. All such written products shall be returned to the CITY upon the termination or expiration of this Agreement. The CONSULTANT agrees that the covenants contained in this Section shall survive the expiration or termination of this Agreement.

SECTION 6. EXTRA SERVICES.

No extra services over and above the Compensation shall be rendered by the CONSULTANT under this Agreement unless such extra services first shall have been duly authorized in writing by the CITY’s City Manager (the “City Manager”).

SECTION 7. CITY SUPERVISION.

The City Manager shall have the right of general supervision of all work performed by the CONSULTANT and shall be the CITY’s agent with respect to obtaining the CONSULTANT’s compliance hereunder. No payment for services rendered under this Agreement shall be made without the prior approval of this agreement by the City Manager.

SECTION 8. TERMINATION.

In the event that either Party hereto fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, the non-defaulting party shall give the defaulting party written notice of the default, the nature of the default, and of the steps necessary to cure the default.
a. Termination for Cause. In the event that any of the provisions of the Agreement are violated by either party, the non-defaulting Party may terminate the Agreement by serving written notice upon the other Party, listing the violation(s) and its intent to terminate such Agreement unless within ten (10) days after the serving of such notice, such violation shall cease or be rectified, the contract shall upon the expiration of an additional thirty (30) days cease and terminate. Violations by the CONSULTANT which cannot be corrected within ten (10) days, said contract shall at the option of the CITY cease and terminate upon the giving of like notice. In the event of any such termination for default by the CONSULTANT, the CITY may take over the work and prosecute the same to completion by contract or otherwise for the account and at the expense of the CONSULTANT. The CONSULTANT and his sureties shall be liable to the CITY for any excess cost occasioned in the event of any such termination. This change shall not be construed to prevent the termination, for other causes authorized by law or other provisions of this contract. In the event of a termination for cause, the CONSULTANT shall only be entitled to the Compensation for those Professional Services satisfactory performed on or before the effective date of termination.
b. Termination for Convenience. The CITY shall have the option, at its sole discretion and without cause, to terminate this Agreement in whole, or in part, by giving thirty (30) business days’ written notice to the CONSULTANT. Upon the termination of this Agreement as provided herein, the CITY shall provide to the CONSULTANT the part of Compensation which would otherwise be payable to the CONSULTANT for services the CONSULTANT had completed as of the date of termination, less the amount of all previous payment with respect to the Compensation. Further, upon such a termination for convenience by the CITY, the 31

Parties agree that the CONSULTANT shall be reimbursed for any “non-refundable” costs that the CONSULTANT has incurred for its services under this Agreement, provided that: (1) such “non- refundable” costs were incurred by the CONSULTANT prior to the date of termination, and (2) that the CONSULTANT provides the CITY with adequate proof that the CONSULTANT incurred the costs, and is unable to be seek a refund for such costs. Such “non-refundable” costs may include, but are not limited to, travel reservations incurred by the CONSULTANT for its performance of services under this Agreement. The CONSULTANT agrees to cease all work under this Agreement on or before the effective date of any notice of termination.

SECTION 9. EMPLOYMENT OF CITY EMPLOYEES.

No regular employee of the CITY shall be employed by the CONSULTANT during the term of this Agreement.

SECTION 10. NON-LIABILITY OF CITY OFFICIALS AND EMPLOYEES.

No official or employee of the CITY shall be personally liable to the CONSULTANT in the event of any default or breach by the CITY, or for any amount which may become due to the CONSULTANT.

SECTION 11. INDEPENDENT CONSULTANT.
a. The CONSULTANT is and shall, at all times, remain as to the CITY a wholly independent consultant. Neither the CITY nor any of its elected officials, officers, employees, or agents shall have control over the conduct of the CONSULTANT except as expressly set forth in this Agreement. The CONSULTANT shall not at any time or in any manner represent that he or she is in any manner an elected official, officer, employee, or agent of the CITY. No employee benefits shall be available to the CONSULTANT in connection with the performance of this Agreement. Except as provided in this Agreement, the CITY shall not pay salary, wages, or other compensation to the CONSULTANT for performance hereunder for the CITY, the CITY shall not be liable for compensation to the CONSULTANT, the CONSULTANT’s employees or the CONSULTANT’s subconsultants for injury or sickness arising out of performing services hereunder.
b. The parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship or any other relationship except as set forth in this Agreement. c. The CITY shall not deduct from the Compensation paid to the CONSULTANT any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to the CONSULTANT. The CITY shall have no responsibility to provide the CONSULTANT, its employees or subconsultants with workers’ compensation insurance or any other insurance.

SECTION 12. CalPERS ANNUITANTS AND ELIGIBILITY INDEMNITY. a. If the CONSULTANT is a California Public Employees’ Retirement System (“CalPERS”) annuitant, the CONSULTANT must provide the City with written notification of such fact a minimum of 14 calendar days prior to commencement of services under this Agreement. Failure to provide such notification may result in termination of the Agreement, and any penalties or other costs relating thereto shall be borne by the CONSULTANT. If this Agreement remains in place, the 32

CONSULTANT shall execute any amendment(s) to this Agreement requested by the City in order to comply with all laws and regulations applicable to CalPERS annuitants.
b. In the event that the CONSULTANT or any employee, agent, or subconsultant of the CONSULTANT providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the CITY, the CONSULTANT shall indemnify, defend, and hold harmless the CITY for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of the CONSULTANT or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the CITY.
c. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, the CONSULTANT and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by the CITY, including but not limited to eligibility to enroll in PERS as an employee of the CITY and entitlement to any contribution to be paid by the CITY for employer contribution and/or employee contributions for PERS benefits.

SECTION 13. LEGAL RESPONSIBILITIES.

The CONSULTANT shall at all times observe and comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local governments including, but not limited to the Montebello Municipal Code. The CITY, and its appointed or elected officers, employees, or agents, shall not be liable at law or in equity occasioned by failure of the CONSULTANT to comply with this section.

SECTION 14. INDEMNIFICATION.

The CONSULTANT agrees to, and shall defend, indemnify, protect and hold harmless, the CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers from and against any and all claims, demands, lawsuits, defense costs, civil, penalties, expenses, causes of action, and judgments at law or in equity, or liability of any kind or nature which the CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers may sustain or incur or which may be imposed upon them for injuries or deaths of persons, or damage to property arising out of the CONSULTANT’s negligent or wrongful act, or omission under the terms of this Agreement, except only liability arising out of the sole negligence of the CITY.

SECTION 15. INSURANCE COVERAGE.
a. During the term of this Agreement, the CONTRACTOR shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with CONTRACTOR’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:

Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis for bodily injury and property damage, including products-completed operations, personal injury, and 33

advertising injury, with limits no less than $2,000,000 per occurrence, $4,000,000 aggregate.

Automobile Liability Insurance: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if CONTRACTOR has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

Worker's Compensation insurance as required by the laws of the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

Professional Liability insurance appropriate to the CONTRACTORS’S profession, with limit no less than $2,000,000 per occurrence or claim, $4,000,000 aggregate.
b. If the CONTRACTOR maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR.
c. The CONTACTOR shall require each of its subcontractors, if any, to maintain insurance coverage that meets all of the requirements of this Agreement. d. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a current rating of at least A:VII in the latest edition of Best's Insurance Guide.
e. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (ten [10] days for nonpayment) has been given to the CITY. The CONTRACTOR agrees that if it does not keep the aforesaid insurance in full force and effect the CITY may either (i) immediately terminate this Agreement for Cause; or (ii) take out the necessary insurance and pay, at the CONTRACTOR’s expense, the premium thereon. .
f. If the CONSULTANT maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT.
g. The CONTACTOR shall require each of its subconsultants, if any, to maintain insurance coverage that meets all of the requirements of this Agreement. h. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a current rating of at least A:VII in the latest edition of Best's Insurance Guide.
i. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (ten [10] days for nonpayment) has been given to the CITY. The CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect the CITY may either (i) immediately terminate this Agreement for Cause; or (ii) take out the necessary insurance and pay, at the CONSULTANT’s expense, the premium thereon. j. Evidence of Insurance prior to commencement. The Contractor shall provide to the CITY Certificate(s) of Insurance evidencing such coverage together 34

with copies of the required policy endorsements no later than five (5) business days prior to commencement of service and at least fifteen (15) business days prior to the expiration of any policy. Unreasonable failure to provide such evidence may be cause for termination of the Agreement as provided herein or delay the services’ commencement date. The evidence of insurance shall be U.S. mail or email to:

City of Montebello
Attn: Principal Risk Manager
1600 West Beverly Boulevard
Montebello, CA 90640
Email: [email protected]
k. Coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits, non-renewed, or materially changed for any reason, without thirty (30) days prior written notice thereof given by the insurer to the CITY by U.S. mail, or by personal delivery, except for nonpayment of premiums, in which case ten (10) days prior notice shall be provided.
l. Evidence of Insurance during the entire term of the Agreement. At all times during the term of this Agreement, the CONSULTANT shall maintain on file with the CITY’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming the CITY as an additional insured. The CONSULTANT shall, prior to commencement of work under this Agreement, file with the CITY’s Risk Manager such certificate(s). m. The CONSULTANT shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages. n. The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming the CITY, its officers, employees, agents and volunteers as additional insured’s. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to the CITY. The CONSULTANT agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.
o. The insurance provided by the CONSULTANT shall be primary to any coverage available to the CITY. Any insurance or self-insurance maintained by the CITY, its officers, employees, agents, or volunteers, shall be in excess of CONSULTANT’s insurance and shall not contribute with it. p. All insurance coverage provided pursuant to this Agreement shall not prohibit the CONSULTANT, and CONSULTANT’s employees, agents or subconsultants, from waiving the right of subrogation prior to a loss. The CONSULTANT hereby waives all rights of subrogation against the CITY.
q. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, the CONSULTANT shall either reduce or eliminate the deductibles or self-insured retentions with respect to the CITY, or the CONSULTANT shall procure a bond guaranteeing payment of losses and expenses. 35

r. Procurement of insurance by the CONSULTANT shall not be construed as a limitation of the CONSULTANT'S liability or as full performance of CONSULTANT’s duties to indemnify, hold harmless and defend under the indemnity covenants of this Agreement.

SECTION 16. SUBCONTRACT, ASSIGNMENT OR DELEGATION.

The CONSULTANT shall not subcontract, delegate, or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of the CITY.

Any proposed subcontract, delegation, or assignment shall provide a description of the services to be covered, identification of the proposed sub-consultant, delegee, or assignee, and an explanation of why and how the same was selected, including the degree of competition involved.

Any subcontract, delegation or assignment shall be made in the name of the CONSULTANT and shall not bind or purport to bind the CITY and shall not release the CONSULTANT from any obligations under this Agreement including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegees or sub-consultants. No such subcontract, delegation or assignment shall result in any increase in the amount of total compensation payable to the CONSULTANT under the Agreement.

SECTION 17. NO WAIVER.

Waiver by any party hereto of any term, condition or covenant of this Agreement shall not constitute the waiver of any other term, condition, or covenant hereof.

SECTION 18. DISPUTE RESOLUTION; GOVERNING LAW.

Disputes regarding the interpretation or application of any provision(s) of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the Parties. If any action at law or in equity is brought to enforce this Agreement or because of alleged dispute, breach, default or misrepresentation in connection with the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney’s fees, expert fees, costs and necessary disbursements incurred in that action or proceeding, in addition to such other relief as may be sought and awarded. The venue for any litigation shall be County of Los Angeles, California. The Parties agree that the covenants contained in this Section shall survive the expiration or termination of this Agreement.

SECTION 19. ATTORNEY’S FEES AND COSTS.

If litigation is reasonably required to enforce or interpret the provisions of this Agreement, the prevailing party in such litigation shall be entitled to an award of reasonable attorney's fees and costs in addition to any other relief to which it may be entitled.

SECTION 20. WARRANTIES.

Each of the parties represents and warrants to one another as follows:
a. It has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement; b. In executing this Agreement, it has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any 36

other party, or any other person or entity, not expressly set forth herein, nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever; and c. It is agreed that each party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either party has the full right and authority to fully commit and bind such party to the provisions of this Agreement.

SECTION 21. MISCELLANEOUS.
a. The descriptive paragraph headings of this Agreement are included for purposes of convenience only and shall not control or affect the construction of interpretation of any of its provisions.
b. Whenever the context hereof shall so require, the singular shall include the plural, the male gender shall include the female gender, and the neuter and vice versa. c. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained herein.
d. The representations and warranties made by the parties to this Agreement shall survive the consummation of the transaction herein described. e. This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the party whose signature appears in the facsimile and shall be binding upon such party in the same manner as though an originally signed copy had been delivered. f. Each of the parties acknowledges that it has been represented by independent counsel of its own choosing, or if it has not been so represented, it has been admonished to obtain independent counsel and has freely and voluntarily waived and relinquished the right to counsel. Each party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such party’s failure to perform under this Agreement or any agreement referred to in this Agreement.

SECTION 22. NOTICE.

All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered via e-mail (an “Electronic Notice” as further defined below), personally or on the second (2nd) business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals hereunder shall be given to the following addresses or such other addresses as the Parties may designate by written notice:
37

If to CITY: City of Montebello
Attn: Raul Alvarez, City Manager
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200
Email: [email protected]
With a copy to: City of Montebello – Department of Finance Attn: Michael Solorza
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887 – 1200
Email: [email protected]
If to Consultant: CONSULTANT NAME

RECIPIENT NAME

ADDRESS

PHONE NUMBER
Email:

An electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this section if sent to the electronic mail address specified above.

Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form.

SECTION 23. NON-DISCRIMINATION AND EQUAL OPPORTUNITY
EMPLOYER.

In the performance of this Agreement, the CONSULTANT shall not discriminate against any employee, sub-consultant, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, mental condition or sexual orientation. The CONSULTANT will take affirmative action to ensure that sub-consultant and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

SECTION 24. CONFLICT OF INTEREST.

The CONSULTANT covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by the CONSULTANT under this Agreement, or which would conflict in any manner with the performance of its services hereunder. The CONSULTANT further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, the CONSULTANT shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this Agreement.

The CONSULTANT covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to the CITY as a result of the performance of this Agreement, or the services that may be procured by the CITY as a result of the recommendations made by the CONSULTANT. The CONSULTANT's covenant under this section shall survive the termination of this Agreement.
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SECTION 25. ENTIRE AGREEMENT.

This Agreement contains the entire understanding between the CITY and the CONSULTANT. Any prior agreements, promises, negotiations or representations not expressly set forth herein are of no force or effect. Subsequent modifications to this Agreement shall be effective only if in writing and signed by each party. If any term, condition, or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall be valid and binding.

SECTION 26. EXTENSION TO OTHER PUBLIC AGENCIES
Unless otherwise specified in writing, the CONSULTANT agrees that the prices, terms, and conditions identified in the Proposal (Exhibit “A”) and Agreement may be extended to other governmental agencies at the mutual agreement of both the public agency and awarded CONSULTANT. All requirements of the specifications, purchase orders, invoices, and payments with other agencies shall be directly with the CONSULTANT. CONSULTANT acknowledges and agrees to the extension of these contract terms to other governmental agencies conditioned upon the agreement of the CONSULTANT with the governmental agency. This provision in no way guaranteed that the CONSULTANT will agree to enter into a contract with a governmental agency pursuant to this Section.
[SIGNATURE PAGE TO FOLLOW]
39

IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Agreement as of the date first written above. (“CITY”) (“CONSULTANT”)

CITY OF MONTEBELLO (CONSULTANT NAME)
Raul Alvarez, City Manager (CONSULTANT SIGNATORY, TITLE) ATTEST:

Christopher Jimenez, City Clerk
APPROVED AS TO FORM:

Arnold M. Alvarez-Glasman, City Attorney
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APPENDIX C: COST PROPOSAL
41

22 Appendix “C”
Cost Proposal
In accordance with the Request for Proposal issued by the City of Montebello (hereinafter referred to as Broker/Consultant), the undersigned proposing company hereby agrees to furnish all necessary labor, materials and incidentals required for the above stated contract as set forth in the Scope of Work and any addenda thereto, and to perform all work in the manner and time prescribed therein.

DESCRIPTION FIXED ANNUAL RATE
A CONTRACT YEAR 1 $
B CONTRACT YEAR 2 $
C CONTRACT YEAR 3 $
Total for initial 3 year contract period $

OPTIONAL RENEWAL PERIODS
D CONTRACT YEAR 4 $
E CONTRACT YEAR 5 $
60,000
60,000
60,000
180,000
62,500
65,000
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23 Appendix “C”
Cost Proposal
The above amounts include salary cost, fringe benefits, overhead, operating margin and profit, and all direct and indirect expenses.

Please include above any other potential additional services that may be required and associated costs. (Attach your hourly and expense schedule for any additional work outside of scope of services.)

COMPANY NAME

ADDRESS

TELEPHONE & FAX

EMAIL ADDRESS

AUTHORIZEDSIGNATURE

SIGNATURE'S NAME AND TITLE

DATE SIGNED
USI Insurance Services LLC
21250 Hawthorne Blvd. Suite 380, Torrance, CA 90503
858.477.9227
[email protected]
Daniel Duzyk
07/13/2026
43

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APPENDIX D: REFERENCES
44

24 Appendix “D”
Reference Sheet
RFP 26 – 17 (Employee Ancillary Benefits Insurance Broker Services) List at Least Three (3) Professional References:
1 Project City/Agency/Other:

Person of Contact:

Phone Number:

E-mail Address:

Address:

City, State, Zip Code:

Descriptionof Contract
(Please include contract
value, award date, term of
contract, and description of
work):

Contract Value: $
Award Date:

Term of Contract:

Description ofWork:
2 Project City/Agency/Other:

Person of Contact:

Phone Number:

E-mail Address:

Address:

City, State, Zip Code:

Descriptionof Contract
(Please include contract
Contract Value: $
Award Date:

Term of Contract:

City of Torrance
Hedieh Kahjavi, HR Director
310.618.2959
[email protected]
3031 Torrance Blvd. Torrance
Torrance, CA 90503
Confidential
2002
Current
Consulting on all ancillary benefits.

City of Palm Springs
Stephanie George, HR Director
760.323.8217
[email protected]
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Confidential
2002
Current
45

25 value, award date, term of
contract, and description of
work):

Description ofWork:
3 Project City/Agency/Other:

Person of Contact:

Phone Number:

E-mail Address:

Address:

City, State, Zip Code:

Descriptionof Contract
(Please include contract
value, award date, term of
contract, and description of
work):

Contract Value: $
Award Date:

Term of Contract:

Description ofWork:

Consulting on all ancillary benefits.

City of Santa Barbara
Charlie Lam, HR Analyst III
805.564.5442
[email protected]
735 Anacapa Street
Santa Barbara, CA 93101
Confidential
2009
Current
Consulting for all ancillary benefits
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EXHIBITS
47

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EXHIBIT I: SAMPLE BBS REPORT
48

CONFIDENTIAL AND PROPRIETARY: This presentation and the information contained herein is confidential and proprietary information of USI Insurance Services, LLC ("USI"). Recipient agrees not to copy, reproduce or distribute this document, in whole or in part, without the prior written consent of USI. Estimates are illustrative given data limitation, may not be cumulative and are subject to change based on carrier underwriting. © 2024 USI Insurance Services. All rights reserved.
www.usi.com
2024 Plan
Performance
Assessment
Partnership Solutions for
Executives and HR Teams
San Joaquin Valley Insurance
Authority
Friday, February 28, 2025
SAMPLE
49

| 1

EMPLOYEE
VIEW
COST &

STRATEGY

ADDITIONAL

BENEFITS
The Plan from the Employee Perspective:
▪ Plan Design Value
▪ Plan Affordability
▪ Total Employee Cost
▪ Effective Communications
Contents
Medical Cost Efficiency and Plan Strategy:
▪ Plan Offerings
▪ Funding Status
▪ Population Health Management
▪ Prescription Drugs
Within this report you will find a summary assessment
of your medical and ancillary plans. We found it most
beneficial to group our benchmarking observations
into three sections:

In all, our study includes data from over 10,000 employers, from dozens of industries, and nearly every state in the country.

Additional Benefits:
▪ Dental
▪ Paid Time Off
▪ Voluntary or Worksite Benefits
50

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Introduction: Your Benchmark Groups
We benchmarked your plans against groupings of other participants that we thought you would be most interested in seeing:
95 P a r t i c i p a n t s
County Government
Industry
767
California
States
88 5000+ Employees
Group Size
P a r t i c i p a n t s P a r t i c i p a n t s
51

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Why is Benchmarking Important?
Unemployment Rate 1

3.8%
Average cost of hiring an
employee and takes 42 days
$4,7003
$630B
Annual voluntary turnover costs
for U.S. Employers 2
90-200%
Percent of an employee’s
annual salary that may be
associated with total cost of
turnover4
In the current economic climate, as
unemployment remains low,
employers are challenged with
aligning workforce demands with
rising costs.
▪ Employers often struggle to understand how their
benefit plans stack up to the competition.
▪ Offering appealing benefits to retain current
employees may be more cost effective than
recruiting new staff.

To drive informed decision-making, USI
actuaries benchmark plan design with the
related actuarial value of out-of-pocket costs
and employee contributions.
1 Bureau of Labor Statistics, March 2024
2 Work Institute’s 2020 Retention Report
3 SHRM. “The Real Costs of Recruitment.”;
4 SHRM Foundation’s Effective Practice Guidelines Series: Retaining Talent, A Guide to Analyzing and Managing Employee Turnover, 2008 52

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Employee Benefits Programs
Payroll
Contributions
Plan Design
Comparisons Customization Value Added
Services to
Employees
Employee
Satisfaction and
Retention
Concerns
For Employee
Benefits
TOP 5
Employers are
challenged with finding
the right balance for
benefits programs.

Cost of Benefits
Is the company
spending too much
on benefits?
1 Cost of Turnover
The company needs to
spend more on benefits to
attract and retain talent
2 USI benchmarking offers targeted, clean data to drive decisions around benefit costs and programs.
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Groups exploring a Patient Assistance Program
(PAP) to assist with coverage of Specialty Rx
Has not
explored
35% 45%
8%
Your Group County
Government
5000+ Employees California
Trending Topics
How are companies treating coverage of GLP-1s (Wegovy, Ozempic, etc.) Providing coverage if prescribed for weight loss
Considering adding coverage for weight-loss in the future County
Government
5000+ Employees California
16%
5%
20%
13%
21%
4%
Several trends in
pharmacy spending
will continue to impact
employer costs
Pharmacy cost increases are
driven by utilization, price, and
emerging therapies.

See what other companies are
doing to help mitigate higher
pharmacy spend and limit
their exposure.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. (Your organization’s responses are highlighted blue)
Gene Therapy Coverage
County
Government
5000+ Employees California
21%
72%
7%
25%
71%
4%
16%
83%
1%
(Your organization’s responses are highlighted blue)
Considering excluding gene therapies from coverage
Will provide coverage for all gene therapies
Have amended plan documents to exclude some or all
gene therapies
54

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Viewing Your Plan from the Employee’s Perspective
Plan Design
Value
Payroll
Contributions
Total
Employee
Cost
Effective
Communication
Good communication adds to the employees’ perception of value.

Employees look at employee benefits as an important piece of their total compensation.

Savvy employees who consider medical benefits as part of their employment decision are looking for:
55

| 7
Your Plans Your Plans when Better than Peer Group Average Plan Design Value – Plan Richness
Employees want access to at
least one medical plan that
covers as much or more than
what they can find at an
average employer in their
industry or geography.

Plan design value calculations reflect
the average amount of total healthcare
spend covered by the plan.

It includes the benefit of employerfunded accounts, such as HSAs or HRAs which can offset out-of-pocket spend.

Note: Plan design values may not be an exact match
to estimates from USI’s Actuarial Value Calculator
86%
84%
86%
85%
75%
97%
75%
94%
95%
98%
California
5000+ Employees
County Government
Peer Group Average
Kaiser HDHP
Kaiser HMO
Anthem HDPPO
Anthem Pismo Beach EPO
Anthem Sierra EPO
Anthem Yosemite EPO
GOAL: You have met or exceeded this goal;
you have 4 plans that are higher than
the benchmark.

Offer at least one plan that’s RESULT:
richer than the Peer Group
Average.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 56

| 8
Plan Design Value, Details by Plan Type
Employees want to have access to at least one medical plan that covers as much or more than what they can find at an average employer in their industry or geography.

Deductible
Out-of-Pocket
Maximum Coinsurance*

HRA/HSA
Funding*
Average % of Cost
Paid by the Plan
Traditional National Network Plans
Anthem HDPPO $3300 $3300 0% $0 75%
County Government $1000 $3625 20% ID 85%
5000+ Employees $750 $3500 20% $500 84%
California $500 $5000 20% $1000 83%
Regional or Performance Network Plans
Anthem Yosemite EPO $0 $1000 0% $0 98%
Anthem Sierra EPO $0 $3000 0% $0 95%
Anthem Pismo Beach EPO $0 $4000 0% $0 94%
Kaiser HMO $0 $1000 0% $0 97%
Kaiser HDHP $3300 $3300 0% $0 75%
County Government $0 $1500 ID ID 98%
5000+ Employees $0 $2650 20% ID 93%
California $0 $4000 30% $1350 92%
Qualified High Deductible Plans
County Government $3000 $4000 20% $1000 78%
5000+ Employees $2500 $5000 20% $500 75%
California $2800 $5500 20% $1000 74%
* Amounts, when offered. HRA Funding may pay first (front-end) or after deductible (back-end).

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 57

| 9
We looked at the average value of employer-funded accounts by plan type. Typically, accounts for Qualified High Deductible Health Plans are HSAs, while accounts for Regional, Performance, and National network plans are HRAs.

Annual Employer Funding Amounts (% offering)*
Individual Coverage
Annual Employer Funding Amounts*
Family Coverage
Employer-Funded Account Values
*Avg amount, when offered (% of companies offering employer funding) HRA Funding may pay first (front-end) or after deductible (back-end).

California
5000+ Employees
County Government
California, ID
5000+ Employees, ID
County Government
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
California
5000+ Employees
County Government, ID
Anthem HDPPO, $0
$1600
$1000
$1500
$2700
$2000
$1500
Qualified High Deductible Health Plans
Regional or Performance Network Plans
Traditional National Network Plans
California
5000+ Employees
County Government
California
5000+ Employees, ID (1%)
County Government, ID (8%)
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
California
5000+ Employees
County Government, ID (5%)
Anthem HDPPO, $0
$1000 (38%)
$500 (61%)
$1000 (52%)
$1350 (2%)
$1000 (4%)
$500 (7%)
Qualified High Deductible Health Plans (usually HSAs)
Regional or Performance Network Plans (HRAs)
Traditional National Network Plans (HRAs)
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 58

| 10
One or more plans are competitive for both singles
and families.

Employee Payroll Contributions
GOAL:

Payroll contributions are a primary driver of employee satisfaction with the benefit plan.

USI identifies opportunities to improve competitiveness or reduce expense.

RESULT:

Monthly Contributions – Individual Coverage Monthly Contributions – Family Coverage Your Plans Your Plans when Better than Peer Group Average $132
$142
$57
$125
California
5000+ Employees
County Government
Peer Group Average
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem HDPPO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
$715
$581
$411
$672
California
5000+ Employees
County Government
Peer Group Average
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem HDPPO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
Offer at least one plan that is priced lower than
the Peer Group Average for singles, families.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 59

| 11
Payroll Contributions by Plan Type
Payroll contributions are the most visible component of a medical plan. They heavily influence the employees’ perception of the benefit and can drive enrollment decisions.

Monthly Contribution – Individual Coverage Monthly Contribution – Family Coverage Your Plans
California
5000+ Employees
County Government
California
5000+ Employees
County Government
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
California
5000+ Employees
County Government
Anthem HDPPO, $0
$540
$446
$295
$730
$572
$702
$799
$651
$441
Qualified High Deductible Health Plans
Regional or Performance Network Plans
Traditional National Network Plans
California
5000+ Employees
County Government, $44
California
5000+ Employees
County Government, $28
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
California
5000+ Employees
County Government
Anthem HDPPO, $0
$96
$112
$124
$166
$158
$159
$77
Qualified High Deductible Health Plans
Regional or Performance Network Plans
Traditional National Network Plans
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 60

| 12
Quality Communications
Effective
communication
increases the
perceived value
of your plans by
employees.

To ensure your
employees are getting
the most out of their
benefits, it helps to have
regular contact and
communications.

A formal contribution
strategy can help
determine the optimal
frequency for
communicating with
employees.
33%
35%
18%
32%
52%
62%
35%
13%
20%
County
Government
5000+ Employees
California
Does your company have a formal EB Communications Strategy? How often employees receive benefits related communications. 18%
4%
33%
4%
42%
24%
8%
32%
9%
27%
41%
8%
11%
1%
39%
Annually, only at Open Enrollment
Quarterly
Monthly
Weekly
As needed
County Government 5000+ Employees California
Yes, prepared
internally by HR
Yes, with external
support
No
Your Responses
GOAL: There may be an opportunity for
enhanced communication strategy.

A formal communication strategy with RESULT:
regular touchpoints.
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Quality Communications
GOAL: Your communications plan meets or
exceeds the goal.

RESULT:

Effective
communication
increases the
perceived value of
your plans by
employees.

To have effective
communication, you need
to reach your employees
with multiple touchpoints
and across multiple media
types.
(Your organization’s investments are represented by light blue highlight) At least six touchpoints across a variety of
demographically appropriate media.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 28%
33%
5%
23%
47%
58%
42%
46%
42%
7%
68%
5%
26%
32%
37%
65%
32%
12%
88%
91%
44%
60%
73%
27%
24%
49%
69%
60%
76%
45%
16%
80%
19%
33%
36%
45%
52%
19%
16%
76%
69%
32%
36%
35%
8%
26%
43%
47%
60%
73%
47%
16%
63%
5%
45%
29%
31%
60%
30%
18%
88%
93%
23%
Paper & Other Visual Aids
Home mailers about benefits
Benefit or wellness information on posters/internal TV
Third Party Tools
Utilize a third-party health or claims advocacy service Utilize interactive decision support services
County Government 5000+ Employees California
Electronic
Mobile applications
Texting campaign
Benefits website/microsite
Case studies and illustrative examples
FSA/HSA tax savings examples
Recorded open enrollment meetings
Webinars, teleconferences
Newsletters, partially dedicated to health topics
Other electronic content, educational on health
Live Presentations
Benefits Fair
Open Enrollment meetings
Open door HR policy
HSA information sessions
Enrollment meetings for voluntary coverage
Retirement/401k sessions
Financial wellness presentations
Wellness classes
62

| 14
You have met or exceeded this goal; you have 4 plans that are higher than the benchmark.

One or more plans are competitive for both singles and families.

One or more plans meet or exceed the goal for both singles and families.

There may be opportunity for enhanced communication
strategies.

After assessing how
your plan is viewed
from the perspective
of the employee,
here’s what we came
up with:

Executive Summary
Plan Design Value
Payroll Contributions
Section 1
Total Employee Cost
Quality Communications
.

GOAL: Offer at least one plan that’s richer than the Peer Group Average.

GOAL:

GOAL:

GOAL: A formal communication strategy and frequent touchpoints.

At least six touchpoints across a variety of demographically appropriate media.

RESULT:

RESULT:

RESULT:

RESULT:

Offer at least one plan that is lower priced than the Peer Group Average for singles, families.

Offer at least one plan whose Total Employee Cost is lower than the Peer Group Average for singles and families.
63

| 15
Medical Cost Efficiency and Plan Strategy
Plan Offerings Funding
Method
Population
Health
Prescription
Drugs
Plan sponsors with fiscal priorities in mind take an interest in certain benefit opportunities that provide options to save money while not sacrificing competitiveness or creating negative employee impact Employers are considering how to balance the attraction and retention of their employees with the cost of their benefits.

We benchmark employers by looking at:
64

| 16
Opportunity to reduce plan value
and still be market-leading.

Over-Insurance
Clients frequently tell us they want to offer a market-leading plan without being an outlier. Only 16% of all plans offered by our participants exceeded 90% coverage, including the value of HSAs. That is the “outlier” level.

Percentage of All Plans Offered, by Level of Plan Coverage GOAL: RESULT:

Good Plans
Market-Leading
Outliers
Maximum Plan Savings Opportunity:

Reduce to 60.0%
Minimum Plan Savings
Opportunity: Reduce to 89.9%
Have no plans which pay more than 90% of
expected cost.

6.9%

13.1%

16.9%

20.8%

15.7%

10.3%

9.1%

7.3%
60% - 64.9% 65% - 69.9% 70% - 74.9% 75% - 79.9% 80% - 84.9% 85% - 89.9% 90% - 94.9% 95% - 100% Anthem Yosemite EPO (Regional, Traditional)
Kaiser HMO (Regional, Traditional)
Anthem HDPPO (National, Traditional)
Anthem Pismo Beach EPO (Regional, Traditional)
Anthem Sierra EPO (Regional, Traditional)
Kaiser HDHP (Regional, Traditional)
98%
97%
94%
75%
95%
75%
65

| 17
Plan Offerings
Many employers strive to offer a range of healthcare options to their employees.

However, too many options could be confusing or overwhelming.

Number of Plans Offered
29%
37%
18%
8% 7%
9%
15%
30%
15%
32%
14%
20% 19%
15%
33%
1 Plan 2 Plans 3 Plans 4 Plans 5+ Plans
County Government 5000+ Employees California
Types of Plans Offered
53%
12%
30%
2%
18%
8%
55%
18%
21%
3%
9%
38%
Traditional PPOs Only HDHPs Only PPO and HDHP PPO, HDHP, and High Performance/Regional
66

| 18
Self-funded; you meet or exceed the goal
for your group size.

Plan Strategy: Funding Method
Groups with at Least One Self- Funded
Plan, by Group Size
Potential benefits of
unbundling:

Your funding method sets the tone for the rest of your medical and prescription drug decisions. By accepting some claims risk, more strategic possibilities become available. *This graph is for groups with your same number of eligible lives, and the line represents 75% enrollment. Actual enrollment may vary.

GOAL: RESULT:
▪ Claims Administration
▪ Prescription Drug Coverage
▪ Stop Loss Coverage
5-Year Likelihood of Financially Benefiting
from Self-funding; Group Size Similar to Yours
We have tools to assist with a quantitative analysis for self-funding, if applicable.

Most groups with fewer than 50
enrolled probably shouldn't selfinsure. Let's discuss.

Groups with over 200 eligible employees and
75% enrollment may benefit from selffunding.
87%
77%
74%
64%
48%
40%
30%
11%
2,500 and up
1,500 to 2,499
1,000 to 1,499
500 to 999
300 to 499
200 to 299
100 to 199
0 to 99
100% 100% 100% 100% 100%
2025 2026 2027 2028 2029
75% Enrollment* 67

| 19
Opportunity in one or more areas.

Plan Strategy: Population Health
We have measured the percent of employers encouraging visits to a primary care physician, and incentivizing participation in the wellness program. Both are critical for a successful population health management program.

GOAL: RESULT:

Organizations REWARDING primary care
physician engagement
Frequency of Incentives Used
67%
48%
28%
County of Fresno County Government 5000+ Employees California Does
not
reward
44%
19%
25%
0% 2% 0%
29%
19%
15%
4%
9%
3%
9% 11%
18%
1%
8%
1%
Premium
Differentials

HSA / HRA
Funding
Cash or Equivalent
(Gift Cards)
Charitable
Donations
PTO Lifestyle Savings
Accounts (LSA)
County Government 5000+ Employees California Your Incentives Reward physician engagement and use
at least one incentive.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 68

| 20
Population Health Management
Investments in population health management services are getting more specialized. The areas shown below are growing in popularity and may be worth consideration.

Offer multi-level implementation through
digital therapy tools, such as app,
telephonic-, and web-based therapies
You do have this. You do not have this. You do not have this.

Direct primary care can offer a primary
care clinic that comes to the employee on
their schedule.

Provides services that supplement
traditional outpatient care, such as
physical therapy.
46%
16% 14%
57%
13%
24% 26%
7%
3%
Behavioral Health Solutions Direct Primary Care Musculoskeletal Care County Government 5000+ Employees California
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 69

|21
Population Health Management
USI benchmarking goes beyond traditional cost and contribution analysis to include investments aimed at improving overall population health. 21% 22%
38%
12%
22%
9%
16%
20%
Biometric Screenings Health Risk Assessments Lifestyle and Behavior Modification (Wellness
Portal)
Healthcare Data
Analytics/Mining
Gym Reimbursement Worksite or Near-Site
Clinics
Chronic Care
Management
Tobacco Cessation
Programs
Investments in population health management tools
(Your organization’s investments are represented by blue columns) RESULT: You have met or exceeded this
goal. (1 or more).

GOAL: Invest in a competitive number of PHM
tools compared to peer groups
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 70

| 22
You are doing your due diligence
and reviewing your pharmacy
contract in detail.

Plan Strategy: Prescription Drugs
BEST PRACTICE:

Review your pharmacy contract regularly
to ensure contract terms are being met.

YOUR RESPONSE:

Top performing plans manage their pharmacy costs with a good contract, and by holding the PBM accountable to that contract.

This starts by reviewing and negotiating the details of your contract terms.

A competitive pharmacy
strategy consists of
several checkpoints.
▪ Contractual due diligence
▪ Taking financial measurements
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 24%
77%
46%
California
5000+ Employees
County Government
71

| 23
You are currently using financial
measurements to ensure contract
guarantees have been met.

Plan Strategy: Prescription Drugs
BEST PRACTICE:

Take financial measurements and hold
the PBM accountable, when possible.

YOUR RESPONSE:

With a clear understanding of the pharmacy contract, groups must then hold the PBM accountable by verifying they are receiving the prices promised.

A competitive pharmacy
strategy consists of
several checkpoints.
▪ Contractual due diligence
▪ Taking financial measurements
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 18%
80%
53%
California
5000+ Employees
County Government
72

| 24
Over-Insurance
Summary ▪ GOAL: Have no plans where the employer pays more than 90% of expected cost.

After assessing the
economic and
strategic efficiency
of your plan, here’s
what we found.

Funding Method
▪ GOAL:

Population Health Management
▪ GOAL:

Prescription Drug Strategy
▪ GOAL:

Executive Summary
Opportunity to reduce plan value and still be market-leading.

Self-funded; you meet or exceed the goal for your group size.

Opportunity in one or more areas.

You are currently using financial measurements to ensure contract guarantees have been met.
▪ RESULT:

Most groups with over 200 eligible employees and 75% enrollment may benefit from being self-funded.
▪ RESULT:

Promote physician engagement, use at least one incentive, and invest in some population health management tools.
▪ RESULT:

Use best practices on rebates, formulary, and holding your PBM accountable.
▪ RESULT:
73

| 25
Additional Benefits
Employees who have a particular insurance need place a high value on those benefits when they are offered, even on an unsubsidized basis.

Here are the additional benefits we benchmarked for you:

Dental Paid Time Off
(PTO)
Voluntary or
Worksite
Benefits
74

| 26
There's an opportunity to increase
PTO days at one or more lengths of
service.

Paid Time Off
GOAL: RESULT:

We’re looking at
distinct groupings of
employer tenure
where you may
have an opportunity
to make a change.
▪ Most groups offer PTO
▪ Details on PTO accrual
and FMLA in the
Appendix
12 12
15 20
23 14 15
18 24
10 10
15 20
0 0 0 0 0
<1 year 1 year 5 years 10 years 15+ years
County Government 5000+ Employees California Your Group Offer no more than five fewer days
than the Peer Group Average at any
given length of service.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group.

Svc. Yrs.:
75

| 27
There may be an opportunity to make your
child leave plan more competitive.

Family Leave
Several states mandate maternity leave. If your business is not situated in one of those states, a maternity and/or paternity benefit can be valuable to growing families.

GOAL: RESULT:

Maternity Leave
Days Offered (% Employers offering)
Paternity Leave
Days Offered (% Employers offering)
60 (28.1%)
30 (52.0%)
40 (22.8%)
52 (31.8%)
California
5000+ Employees
County Government
Peer Group Average
County of Fresno, 0
42 (27.0%)
20 (46.7%)
40 (22.8%)
38 (30.1%)
California
5000+ Employees
County Government
Peer Group Average
County of Fresno, 0
Employers that offer maternity leave are
generally considered competitive.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 76

| 28
You meet or exceed this goal.

Voluntary, or Worksite Benefits
GOAL: RESULT:

Instead of focusing
solely on medical
benefits, adding
ancillary benefits is
a cost-efficient
way to diversify
your benefits
portfolio.

These benefits appeal to
each employee's unique
needs with little additional
financial burden to the
employer.
(Your organization’s investments are represented by blue columns) Offer one benefit from at least two
separate worksite categories.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group.

Supplemental Health
Accident coverage
Critical illness/cancer coverage
Hospital indemnity coverage
Vision (stand alone)
County
Government
5000+
Employees California
2%
58%
58%
35%
18%
12%
89%
84%
14%
14%
7%
7%
86%
49%
74%
75%
17%
61%
40%
20%
11%
53%
85%
88%
51%
53%
32%
32%
95%
59%
73%
73%
6%
29%
36%
23%
5%
37%
71%
68%
33%
28%
4%
4%
88%
49%
62%
63%
Non-Health Insurance
Auto insurance
Homeowners insurance
Prepaid legal
Pet insurance
Flexible Spending
FSA – dependent care
FSA – healthcare
FSA – commuter
Financial & Education Planning
529 college savings
Long term care coverage (stand alone)
Universal life/whole life
Tuition reimbursement allowance
Student debt repayment/refinancing
77

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Dental
▪ GOAL: Affordable contributions and competitive premiums. ▪ RESULT:

Summary
We’ve reviewed your
ancillary coverages
for competitiveness.

Here’s what we’ve
found:

Paid Time Off (PTO)
▪ GOAL: Competitive PTO at several length of service; offer maternity leave. ▪ RESULT:

Voluntary, or Worksite Benefits
▪ GOAL:

Executive Summary
You have at least one competitive plan for single and family premiums. You have at least one competitive plan for single and family contributions.

There's an opportunity to increase PTO
days at one or more lengths of service.

There may be an opportunity to make your
child leave plan more competitive.

You meet or exceed this goal.

A diverse portfolio that spans the full spectrum of coverage offerings for risk-averse employees.
▪ RESULT:
78

| 30
Solutions Summary
Here is a summary of optional solutions and their estimated financial impact to your plan:

Company Cost Profile
Total Healthcare Cost: $0 Funding Method
Number of Employee Enrolled in Medical 0 Self-Funded
Cost per Employee per Year $0
Claims Costs Estimates by Type of Service:

Physician $0 15% n $0
Inpatient $0 21% n $0
Outpatient $0 26% n $0
Prescription Drugs $0 23% n $0
Subtotal $0 85% $0
Estimated Fixed / Retention Cost $0 15% n
Annual Cost $0 100%
USI Solution Options 1 Savings ($) % Comments
Underwriting & Analytics
Alternative Funding Analysis $0 0% You already have at least one self-funded plan.

Comprehensive Underwriting Review 0 0% This is a solution more tuned for a fully-insured group.

USI Stop Loss Consortium 0 2% This is a solution best suited to self-funded groups.

HR Services
Spousal Coverage Strategy 0 9% We can discuss some spousal coverage options.

Effective Benefit Communcations varies varies The level of savings depends on how much you're spending on comm's today.

Population Health Management
Incentivized Physician Engagement 0 3% This is low-hanging fruit for most groups. Let's discuss.

USI CORE Health Strategy 0 1% Our CORE health savings is additive to incentivized physician engagement.

Pharmacy
USI Clear Options Rx 0 5% Our Clear Options program can save money whether you're carved in or out.

Independent Prior Authorization 0 6% A great way to manage cost for special medications.

Pharmacy Contract Analysis 0 3% Evaluating the strength of your pharmacy contract provides opportunity to save money.

Total Savings Estimate $0 29%
1 Not an exhaustive list. Solutions such as reference-based pricing can also save self-funded plan up to an additional 30% of total cost. 0% 0%
79

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Disclosures
CONFIDENTIAL AND PROPRIETARY: The information, including but not limited to, text, graphics, images and other material contained on this document is for informational purposes only. The purpose of this benchmarking report is to promote understanding and knowledge of the topics contained therein. It is not intended to be a substitute for professional risk management advice. USI does not accept any responsibility for the content of the information provided or for consequences of any actions taken on the basis of the information provided.
© 2024 USI Insurance Services. All rights reserved.
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Benchmarking Table 1
Qualified High Deductible Plans – Benefit Components
Only shown on group plans, as applicable:
** Benefit paid after deductible met, subject to coins.; * Benefit paid after deductible met, not subject to coins.; ‘ Benefit subject to coins., deductible does not apply.

County
Government
5000+
Employees California
Deductibles / OOP Maximums
Individual deductible $3,000 $2,500 $2,800
Family deductible $6,000 $5,000 $5,400
Individual OOP max $4,000 $5,000 $5,500
Family OOP max $8,000 $10,000 $11,000
HSA / HRA Employer Funding - % Offering 52% 61% 38%
Single Total, when offered $1,000 $500 $1,000
Family Total, when offered $1,500 $1,000 $1,600
Coinsurances and Copays
Coinsurance (for those offering) 20% 20% 20%
Groups with 0% Coinsurance (100% Plan) 43% 13% 25%
Median copay, when required
PCP Copay ID ID $30
Specialist Copay ID ID $50
ER Copay ID $300 $100
Urgent Care Copay ID ID $35
Inpatient Hospital Copay ID ID $250
Outpatient Surgical Copay ID ID $150
Prescription Drug Cost Sharing
Tier 1 Copay $10 $10 $10
Tier 1 Coinsurance 20% 20% 25%
Tier 2 Copay $35 $35 $30
Tier 2 Coinsurance 20% 20% 25%
Tier 3 Copay $60 $55 $50
Tier 3 Coinsurance 20% 23% 25%
Actuarial Plan Value
% of Total Cost Covered by Plan - including HRA/HSA 78% 75% 74% % of Total Cost Covered by Plan - excluding HRA/HSA 74% 71% 70% 81

| 33
Benchmarking Table 2
Qualified High Deductible Plans – Funding, Premiums, and Contributions County
Government
5000+
Employees California
Percentage of groups that offers this type of plan 43% 74% 40% Percentage of groups by funding type
Fully--insured 30% 9% 81%
Self--insured 70% 91% 19%
Out of network offered 100% 99% 87%
Monthly Premium
Single $735 $606 $662
EE+Spouse $1,573 $1,298 $1,398
EE+Chld(rn) $1,578 $1,123 $1,264
Family $2,000 $1,787 $1,980
Employee Payroll Contribution
Single $44 $112 $96
EE+Spouse $237 $332 $356
EE+Chld(rn) $233 $270 $316
Family $295 $446 $540
Monthly Employer Contribution Percentage
Single 94% 82% 86%
EE+Spouse 85% 74% 75%
EE+Chld(rn) 85% 76% 75%
Family 85% 75% 73%
82

| 34
Benchmarking Table 3
Regional or Performance Network Plans – Benefit Components Only shown on group plans, as applicable:
** Benefit paid after deductible met, subject to coins.; * Benefit paid after deductible met, not subject to coins.; ‘ Benefit subject to coins., deductible does not apply.

Anthem Yosemite
EPO Anthem Sierra EPO
Anthem Pismo
Beach EPO Kaiser HMO Kaiser HDHP
County
Government
5000+
Employees California
Deductibles / OOP Maximums
Individual deductible $0 $0 $0 $0 $3,300 $0 $0 $0
Family deductible $0 $0 $0 $0 $6,000 $0 $0 $0
Individual OOP max $1,000 $3,000 $4,000 $1,000 $3,300 $1,500 $2,650 $4,000 Family OOP max $2,000 $6,000 $8,000 $2,000 $6,000 $3,000 $6,000 $8,000 HSA / HRA Employer Funding - % Offering 8% 1% 2%
Single Total, when offered $0 $0 $0 $0 $0 ID ID $1,350
Family Total, when offered $0 $0 $0 $0 $0 ID ID $2,700
Coinsurances and Copays
Coinsurance (for those offering) 0% 0% 0% 0% 0% ID 20% 30% Groups with 0% Coinsurance (100% Plan) 85% 46% 46%
Median copay, when required
PCP Copay $15 $35 $35 $15 $0* $15 $20 $30
Specialist Copay $15 $35 $35 $15 $0* $15 $25 $40
ER Copay $100 $250 $300 $100 $0* $50 $100 $150
Urgent Care Copay $15 $35 $35 $15 $0* $15 $20 $30
Inpatient Hospital Copay $0 $500 $1000 $0 $0* ID $125 $500 Outpatient Surgical Copay $0 $0 $0 $15 $0* $15 $50 $250 Prescription Drug Cost Sharing
Tier 1 Copay $10 $10 $10 $10 $0 $5 $10 $10
Tier 1 Coinsurance 0% 0% 0% 0% 0% ID ID ID
Tier 2 Copay $20 $20 $20 $20 $0 $20 $30 $30
Tier 2 Coinsurance 0% 0% 0% 0% 0% ID ID 40%
Tier 3 Copay $35 $35 $35 $0 $0 $50 $30 $50
Tier 3 Coinsurance 0% 0% 0% 0% 0% ID ID 40%
Actuarial Plan Value
% of Total Cost Covered by Plan - including HRA/HSA 98% 95% 94% 97% 75% 98% 93% 92% % of Total Cost Covered by Plan - excluding HRA/HSA 98% 95% 94% 97% 75% 98% 93% 92% 83

| 35
Benchmarking Table 4
Regional or Performance Network Plans – Funding, Premiums, and Contributions Anthem Yosemite
EPO Anthem Sierra EPO
Anthem Pismo
Beach EPO Kaiser HMO Kaiser HDHP
County
Government
5000+
Employees California
Percentage of groups that offers this type of plan 14% 30% 80% Percentage of groups by funding type
Fully--insured 92% 80% 99%
Self--insured l l l l l 8% 20% 1%
Out of network offered 2% 3% 0%
Monthly Premium
Single $0 $0 $0 $0 $0 $836 $737 $693
EE+Spouse $0 $0 $0 $0 $0 $1,682 $1,514 $1,496
EE+Chld(rn) $0 $0 $0 $0 $0 $2,172 $1,456 $1,439
Family $0 $0 $0 $0 $0 $2,187 $2,282 $2,024
Employee Payroll Contribution
Single $0 $0 $0 $0 $0 $28 $166 $124
EE+Spouse $0 $0 $0 $0 $0 $450 $415 $500
EE+Chld(rn) $0 $0 $0 $0 $0 $422 $359 $452
Family $0 $0 $0 $0 $0 $702 $572 $730
Monthly Employer Contribution Percentage
Single 97% 77% 82%
EE+Spouse 73% 73% 67%
EE+Chld(rn) 81% 75% 69%
Family 68% 75% 64%
84

| 36
Benchmarking Table 5
Traditional National Network Plans – Benefit Components Only shown on group plans, as applicable:
** Benefit paid after deductible met, subject to coins.; * Benefit paid after deductible met, not subject to coins.; ‘ Benefit subject to coins., deductible does not apply.

Anthem HDPPO
County
Government
5000+
Employees California
Median plan provisions
Individual deductible $3,300 $1,000 $750 $500
Family deductible $6,000 $2,000 $1,600 $1,500
Individual OOP max $3,300 $3,625 $3,500 $5,000
Family OOP max $6,000 $8,000 $7,500 $10,000
HRA Employer Funding - % Offering 5% 7% 4%
Single Total, when offered $0 ID $500 $1,000
Family Total, when offered $0 ID $1,500 $2,000
Coinsurances and Copays
Coinsurance (for those offering) 0% 20% 20% 20%
Groups with 0% Coinsurance (100% Plan) 14% 16% 10%
Median copay, when required
PCP Copay $0* $25 $25 $30
Specialist Copay $0* $35 $40 $50
ER Copay $0* $200 $200 $200
Urgent Care Copay $0* $35 $45 $35
Inpatient Hospital Copay $0* $250 $350 $250
Outpatient Surgical Copay $0* $150 $200 $200
Median prescription drug cost sharing
Tier 1 Copay $0 $10 $10 $10
Tier 1 Coinsurance 0% 20% 20% 20%
Tier 2 Copay $0 $30 $35 $35
Tier 2 Coinsurance 0% 20% 20% 25%
Tier 3 Copay $0 $50 $63 $60
Tier 3 Coinsurance 0% 20% 40% 50%
Actuarial Plan Value
% of Total Cost Covered by Plan - including HRA/HSA 75% 85% 84% 83% % of Total Cost Covered by Plan - excluding HRA/HSA 75% 84% 84% 82% 85

| 37
Benchmarking Table 6
Traditional National Network Plans – Funding, Premiums, and Contributions Anthem HDPPO
County
Government
5000+
Employees California
Percentage of groups that offers this type of plan 84% 90% 71% Percentage of groups by funding type
Fully--insured 34% 13% 79%
Self--insured l 66% 87% 21%
Out of network offered l 100% 98% 99%
Monthly Premium
Single $0 $885 $715 $881
EE+Spouse $0 $1,802 $1,578 $1,863
EE+Chld(rn) $0 $1,783 $1,367 $1,756
Family $0 $2,435 $2,218 $2,575
Employee Payroll Contribution
Single $0 $77 $159 $158
EE+Spouse $0 $328 $456 $538
EE+Chld(rn) $0 $316 $406 $470
Family $0 $441 $651 $799
Monthly Employer Contribution Percentage
Single 91% 78% 82%
EE+Spouse 82% 71% 71%
EE+Chld(rn) 82% 70% 73%
Family 82% 71% 69%
86

| 38
Benchmarking Table 7
DEI and Work From Home Strategies
Diversity, Equity and Inclusion (DEI) Strategies
None at this time
DEI is included as a specific goal in our company objectives We have a dedicated team or department
We offer DEI training and education for our employees
Future of remote work for most employees
Most employees will work remotely much of the time
Move toward hybrid schedules that include both remote and in-office time Offer increased flexibility to work remotely part-time for some classes of employees, but most employees will return to the office Employees will return to the office as soon as feasible 40% 17% 34%
18% 48% 38%
19% 51% 23%
12% 15% 9%
19% 11% 13%
0% 6% 15%
24% 35% 22%
27% 27% 16%
l
l
County of Fresno County
Government
5000+
Employees California
Employees are currently working in the office
3% 2% 4%
Remote Work Availability
We have implemented initiatives to increase diversity in our recruitment and hiring processes We partner with external organizations to further DEI efforts We have redesigned our medical plans to address specific DEI needs (e.g., adding transgender surgery) Prefer not to answer
45% 30% 43%
23% 51% 31%
23% 43% 35%
2% 16% 9%
87

| 39
Benchmarking Table 8
Population Health Management – Culture and Approach
Percentage of groups that offer Financial Wellness resources or training:

Percentage of groups that reward PCP engagement as part of the overall population health strategy:

Percentage of groups offering rewards as population health/wellness incentive:

Premium Differentials/Credits
HSA/HRA Funding
Cash or Cash Equivalents (Gift Cards)
Charitable Donations
PTO
Company making population health risk management investments in the following areas:

Biometric Screenings
Health Risk Assessments
Behavioral Health Solutions
Lifestyle and Behavioral Modification (Wellness Portal) Healthcare data analytics/mining
Gym Reimbursement
Onsite/Near-site Clinics
33% 16% 13%
67% 48% 28%
44% 29% 9%
19% 19% 11%
25% 15% 18%
0% 4% 1%
2% 9% 8%
53% 33% 16%
49% 37% 16%
46% 57% 26%
49% 52% 34%
26% 39% 7%
21% 23% 22%
32% 17% 5%
35% 55% 9%
l
l
l
l
County of Fresno County
Government
5000+
Employees California
Chronic Care Management
Direct Primary Care
Musculoskeletal Care
16% 13% 7%
14% 24% 3%
Tobacco Cessation Programs l 35% 48% 15%
Wellness Premium Differentials/Credits or HSA/HRA Funding, Avg Monthly Incentive (excludes tobacco surcharge):

Tobacco Use Surcharges
Company charges a tobacco-use surcharge
Average Monthly Tobacco-use Surcharge
2% 23% 0%
$25 $75 ID
$50 $50 $44
Lifestyle Savings Accounts (LSA) 0% 3% 1%
Enhanced Population Health Management Solutions offered:

Behavioral health solutions beyond standard EAP services Cancer care management
Musculoskeletal solutions
28% 41% 21%
14% 17% 4%
11% 27% 3%
None of these 65% 43% 76%
88

| 40
Benchmarking Table 9
Employee Engagement
Percentage of groups using engagement opportunities during open enrollment:

We host a benefit fair, either in person or virtual
HR has an open-door policy regarding personal coverage questions and will answer specific questions We encourage our employees to utilize our third-party health or claims advocacy service Case studies are provided that illustrate how our plans/contributions compare on an annualized basis We illustrate tax savings examples for our FSA and/or HSA plans and explain these accounts in detail Employees are invited to bring spouses to open enrollment sessions We host after hour webinars/recorded open enrollment presentations to include employees and spouses We utilize interactive decision support services
Percentage of groups hosting any of the following events, outside of open enrollment:

Health Savings Account information sessions
Enrollment meetings for voluntary lines of coverage (critical illness, prepaid legal, pet insurance, etc.) Retirement/401(k) information sessions detailing investment options Financial wellness presentations
Wellness classes (healthy cooking, mindfulness, yoga, etc.) Other
Percentage of groups utilizing any of the following methods to educate employees:

Newsletters (either partially or entirely dedicated to health-related topics) Educational audio/visual content related to benefits hosted on intranet or emailed to employees Home mailers announcing upcoming changes to benefits, OE dates or other benefit related material Posters and/or internal TV stations discussing benefit or wellness related materials Mobile application
44% 32% 23%
91% 69% 93%
88% 76% 88%
23% 24% 26%
7% 16% 16%
42% 45% 47%
47% 21% 17%
42% 60% 60%
12% 16% 18%
32% 19% 30%
65% 52% 60%
37% 45% 31%
32% 36% 29%
58% 69% 47%
47% 49% 43%
33% 73% 35%
28% 60% 36%
l
l
l
l
l
County of Fresno County
Government
5000+
Employees California
We walk through plan designs, explain networks and answer general questions regarding coverage Benefits website/microsite
Texting campaign
l 26% 33% 45%
l 68% 80% 63%
5% 19% 5%
5% 27% 8%
16% 11% 7%
89

| 41
Benchmarking Table 10
Pharmacy and Other Benefits Strategies
Pharmacy Strategies
Percent of companies taking financial measurements to ensure pharmacy contract guarantees have been achieved Percent of companies using a separate third-party vendor to manage pharmacy benefits (carve-out?) Approaches to handling prescription drug rebates from carrier or PBM The carrier administering our pharmacy benefits does not share rebate details with us Rebates are applied to our account to offset other costs (medical credit) We receive a check for a portion of the total rebate amount We receive a check for the total amount of pharmacy rebates Specialty Rx Benefits
We have a separate, specialty Rx benefit (e.g. Tier 1, 2, 3, and Specialty Rx) Specialty drugs fall under one of our traditional Rx tiers (e.g. Tier 1, 2, 3) Current drug formulary
Our carrier/PBM does not allow changes to the formulary We are using their standard formulary but have the option of a “value” formulary We choose a “value” formulary option
We have the ability to create custom formulary lists
Spousal Surcharges
Special provisions concerning coverage for spouses who have coverage available through their employer Charges extra payroll contributions for spouses who elect our coverage but have coverage available through their employer Requires spouses to take coverage from their employer
No special provisions
Monthly spousal surcharge amount
53% 80% 18%
30% 55% 10%
40% 12% 80%
23% 24% 10%
9% 17% 4%
28% 47% 6%
51% 61% 59%
49% 39% 41%
49% 16% 66%
35% 56% 26%
7% 13% 6%
9% 15% 2%
9% 16% 3%
18% 13% 1%
ID $200 $140
l
l
l
l
l
County of Fresno County
Government
5000+
Employees California
Percent of companies that have explored a Pharmacy Assistance Program (PAP) to assist with coverage of Specialty Rx 35% 45% 8% l 74% 71% 96%
Coverage of GLP-1s
Percent of companies providing coverage for adults with type 2 diabetes Providing coverage if prescribed for weight loss
Considering adding coverage for weight-loss in the future 16% 20% 21%
5% 13% 4%
Coverage of Gene Therapies
Groups considering excluding gene therapies from coverage under their plan(s) Percent of companies not considering exclusion of gene therapies Have already amended their plan documents to exclude some or all gene therapies 72% 71% 83%
7% 4% 1%
21% 25% 16%
79% 76% 55%
90

| 42
Benchmarking Table 11
Dental PPO – Benefit Components
In-Network Benefits: Deductible
Individual
Family
In-Network Benefits: Coinsurance
Preventive Services
Basic Restorative
Major
In-Network Benefits: Annual Maximum
In-Network Benefits: Orthodontia
Offered
Deductible
Orthodontia Lifetime Maximum
Delta Dental DPPO County
Government
5000+
Employees California
$50 $50 $50
$75 $100 $150
None None None
80% 80% 80%
50% or less 50% or less 50% or less
$1,500 $1,500 $1,500
65% 56% 58%

ID ID ID
$1,200 $1,500 $1,500
$50
$150
No coinsurance
90%
50% or less
$2,500
l
$00
$1,660
91

| 43
Benchmarking Table 12
Dental PPO – Funding, Premiums, and Contributions
Percentage of groups offering Dental PPO:

Percentage of groups by dental PPO funding type:

Fully-Insured
Self-Insured
Dental PPO Monthly Premium
Single
Dental PPO Monthly Employee Payroll Contribution
Single
EE+Spouse
Monthly Employer Contribution Percentage
Single
EE+Spouse
92% 93% 88%
72% 43% 83%
28% 57% 17%
$35 $30 $45
$67 $50 $88
47% 54% 54%
38% 38% 49%
l
$0
$0
Delta Dental DPPO County
Government
5000+
Employees California
EE+Child(rn)
Family
$15 $17 $14
$32 $25 $38
$0
$0
EE+Child(rn)
Family
57% 43% 69%
52% 50% 57%
Family
$73 $59 $106
$108 $98 $147
$0
$0
$39 $27 $49
$67 $61 $75
$0
$0
EE+Spouse
EE+Child(rn)
92

| 44
Benchmarking Table 13
Dental HMO – Funding, Premiums, and Contributions
Percentage of groups offering a Dental HMO
Dental HMO Monthly Premium
Single
Dental HMO Employee Payroll Contribution
Single
Monthly Employer Contribution Percentage
Single
12% 11% 31%
$43 $15 $16
$75 $26 $29
$23 $5 $6
$50 $9 $16
47% 67% 63%
33% 65% 45%
Delta Dental DHMO County
Government
5000+
Employees California
$0
$0
$0
$0
Family
$102 $33 $37
$115 $40 $45
$0
$0
EE+Spouse
EE+Child(rn)
Family
$40 $10 $22
$56 $14 $28
$0
$0
EE+Spouse
EE+Child(rn)
Family
61% 70% 41%
51% 65% 38%
EE+Spouse
EE+Child(rn)
93

| 45
Benchmarking Table 14
Vision
Percentage of groups offering a Vision Plan
Vision median plan provisions:

Exam Copay
Exam Frequency
Lenses Frequency
Frames Frequency
Vision Monthly Premium
Single
Family
Vision Monthly Employee Payroll Contribution
Single
Family
Monthly Employer Contribution Percentage
Single
Family
78% 81% 82%
$10 $10 $10
12 months 12 months 12 months
12 months 12 months 12 months
12 months 24 months 24 months
$7 $6 $8
$21 $18 $23
$6 $6 $5
$19 $17 $18
14% 0% 38%
10% 6% 22%
Vision Service Plan County
Government
5000+
Employees California
$10
12 Months
12 Months
24 Months
$0
$0
$0
$0
0%
0%
94

| 46
Benchmarking Table 15
Paid Time Off
Paid Time Off
Percentage of groups offering paid time off, excluding paid holidays Percent offering unlimited PTO/employees can take off up to 365 days each year Percentage of groups offering sick days
Number of PTO days based on years of service / tenure, not including holidays Less than a year of service
1 year of service
5 years of service
10 years of service
15+ years of service
PTO Usage versus Accrual
Employees can use time they have not yet accrued
Employees can only use time they have accrued
The entire allotment of PTO time is available on the first day of each annual cycle PTO rollover is allowed
Average number of days of rollover, when allowed
Employees are allowed to donate PTO to coworkers
Average number of days allowed for:

Paid Sick Leave
Paid Holiday Days
Paid Community Service/Charity Days :

Paid Bereavement Days
Outsources FMLA (not including groups under 50 employees) Maternity and Paternity Benefits
Percent of employers offering paid maternity days
Number of paid maternity days when offered
Percent of employers offering paid paternity days
Number of paid paternity days when offered
96% 91% 87%
0% 3% 9%
68% 37% 70%
12 14 10
12 15 10
15 18 15
20 20 20
23 24 20
2% 40% 17%
98% 49% 80%
0% 12% 3%
84% 69% 75%

30.5 12.5 20
61% 25% 13%
12 7.5 5
12 8 10

1.75 1 2
3 3 3
9% 46% 20%
23% 52% 28%
40 30 60
23% 47% 27%
40 20 42
County of Fresno County
Government
5000+
Employees California
l
l
95

| 47
Benchmarking Table 16
Basic Life
Basic Life
Percent of groups offering basic life insurance
1 times pay

1.5 times pay
2 times pay
Another multiple of pay
Flat amount
County Basic Life County
Government
5000+
Employees California
63% 77% 67%
17% 24% 16%
1% 4% 2%
6% 13% 11%
1% 9% 4%
l 75% 51% 67%
l
Average Flat Amount
Benefit Maximum
$25,000 $30,000 $50,000
$45,000 $250,000 $50,000
$10,000
96

| 48
Benchmarking Table 17
Short- and Long-Term Disability
Short-Term Disability
Percentage of groups offering short-term disability
100% of the premium is paid by the employer
Partially paid by the employer
None, the entire premium is paid by the employee
Elimination Period (Days)
Accident
Illness
Policy Details
% of Salary covered by Short-Term disability benefit
Maximum weekly dollar benefit paid by Short-Term disability program Total weeks Short-Term disability benefits paid
Long-Term Disability
Percentage of groups offering long-term disability
100% of the premium is paid by the employer
Partially paid by the employer
None, the entire premium is paid by the employee
Policy Details
% of Salary covered by long-term disability benefit
Maximum monthly dollar benefit paid by your long-term disability program County
Government
5000+
Employees California
County
Government
5000+
Employees California
Managment
Long Term
Disability
37% 71% 31%
27% 52% 59%
0% 15% 4%
73% 33% 37%
7 7 7
7 7 7
60% 60% 60%
$1,000 $2,000 $1,572
23 25 13
46% 73% 46%
36% 40% 79%
15% 23% 5%
49% 37% 16%
60% 60% 60%
$6,000 $10,000 $10,000
l
l
0%
$00
97

| 49
Benchmarking Table 18
Voluntary or Worksite Benefits
County of Fresno
County
Government
5000+
Employees California
Percentage of groups offering:
529 College Savings Plan 18% 11% 5%
Accident Coverage 75% 73% 63%
Auto Insurance 7% 32% 4%
Critical Illness/Cancer Coverage 74% 73% 62%
FSA - Dependent 84% 88% 68%
FSA - Healthcare 89% 85% 71%
FSA - Commuter 12% 53% 37%
Homeowners Insurance 7% 32% 4%
Hospital Indemnity Coverage 49% 59% 49%
Long Term Care Coverage (stand alone) 35% 20% 23%
Pet Insurance 14% 51% 33%
Prepaid Legal 14% 53% 28%
Universal Life/Whole Life 58% 40% 36%
Vision (stand alone) 86% 95% 88%
Tuition Reimbursement Allowance 58% 61% 29%
Student Debt Repayment/Refinancing 2% 17% 6%
l
l
l
l
l
l
l
Company Provided Lunch 2% 8% 12%
Number of Days, when offered 7 5 1
98

CONFIDENTIAL AND PROPRIETARY: This document and the information contained herein is confidential and proprietary information of USI Insurance Services, LLC ("USI"). Recipient agrees not to copy, reproduce or distribute this document, in whole or in part, without the prior written consent of USI.

Estimates are illustrative given data limitation, may not be cumulative and are subject to change based on carrier underwriting. © 2024 USI Insurance Services. All rights reserved.
99

|
EXHIBIT II: NATIONAL COMPLIANCE UPDATE
100

This summary is intended to convey general information and is not an exhaustive analysis. This information is subject to change as guidance develops. USI does not provide legal or tax advice. For advice specific to your situation, please consult an attorney or other professional.

January 9, 2025
State Health Coverage Reporting
Requirements for CY 2024
Currently, five states (California, Massachusetts, New Jersey, Rhode Island, and Vermont) and the District of Columbia have enacted individual health insurance mandates with their own requirements for:
▪ furnishing information regarding health insurance coverage to residents of the state, and ▪ filing that information with certain state agencies.

These requirements and deadlines may (or may not) align with the federal requirements.

USI Note. As a reminder, under the Affordable Care Act (“ACA”), applicable large employers1(“ALEs”) must furnish Form 1095-C to full-time employees and file Form 1094- C and all 1095-Cs with the IRS. ALEs offering a self-insured group health plan must also furnish Forms 1095-C to covered employees or other primary insured individuals in the selffunded health plan (e.g., covered part-time employees, COBRA qualified beneficiaries). 2 Calendar year 2024 Forms 1095-C must be furnished by March 3, 2025, and filed electronically with the IRS by March 31, 2025.

The Paperwork Burden Reduction Act permits the employer (or carrier) to furnish the federal forms 1095-C (or 1095-B) only upon request when:
▪ Timely, clear and accessible notice is provided to any indvidual who would otherwise receive a Form 1095-C (or 1095-B) that they can request a copy of the applicable Form; and
▪ Upon request, the applicable Form is furnished by the later of January 31 or 30 days after the date of such request.

As described below, satisfying the federal requirements may not satisfy the applicable state obligations. It is important to ensure both federal and state requirements (as applicable) are met. As of the date of this article’s publication, the applicable states and District of 1 An applicable large employer is defined as an employer that employed on average at least 50 full-time employees, including full-time equivalent employees, during the preceding calendar year. 2 Employers that are not ALEs and offer self-funded group health plan coverage (including level funded plans) must furnish and file forms regarding minimum essential coverage (Forms 1094-B and 1095-B).

National Compliance Update

USI EMPLOYEE BENEFITS
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Page | 2
Columbia have not adopted the federal relief. Absent similar relief at the state level, employers (and carriers) should prepare to furnish Forms 1095-C (or 1095-B) to covered residents as they have in prior years (e.g., by mail).

The following chart summarizes important deadlines related to CY 2024 state individual mandate reporting.

State
Deadline to Furnish Statements to Employee
Residents
Deadline to File Statements with State
Agency
California January 31, 2025. However, no penalty is
imposed for failing to furnish by this deadline.

March 31, 2025. No penalties will be
assessed if filed by May 31, 2025.

District of Columbia March 3, 2025 April 30, 2025 (30 days after federal deadline)
Massachusetts January 31, 2025 January 31, 2025
New Jersey March 3, 2025 March 31, 2025
Rhode Island March 3, 2025 March 31, 2025
Vermont N/A N/A
USI Note. The state reporting deadlines are subject to change if the states update their reporting information. This information is current as of the date of publication.

Important issues to consider regarding furnishing and filing state-level health coverage information are as follows:
▪ State residents. Employers with employees and other covered individuals residing in states with health coverage mandates should ensure the state-level health insurance distribution and state-level filing requirements are satisfied. Penalties may arise for late or incorrect filings with the state.
▪ Forms.
– California, the District of Columbia, New Jersey, and Rhode Island use the federal Forms 1094/1095 (B, C) for the state’s individual mandate reporting requirements. – Massachusetts requires MA Form 1099-HC to be furnished to Massachusetts residents and filed with the state by January 31. In addition, Massachusetts requires employers with at least 6 employees residing in Massachusetts to file the Health Insurance Responsibility Disclosure (“HIRD”) form.3
▪ Employers with fully insured plans.
– Carriers issuing policies in California, Massachusetts, New Jersey, and Rhode Island are generally obligated to issue health coverage statements to plan members residing in the respective state and to file the required health coverage information to that state agency.
– The District of Columbia requires employers that sponsor a fully insured group health plan with at least 50 full-time employees, including at least one employee who is a 3 The Massachusetts HIRD form is available starting November 15 of the filing year and must be completed by December 15 of the filing year.
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resident of the District, to file information returns with the Office of Tax and Revenue (“OTR”).
– USI Note. A carrier may not automatically furnish a member statement and file with a state agency for plan members residing outside of the policy issue/situs state. ▪ Employers with fully insured plans issued out-of-state. Employers should confirm that the carrier will adhere to the required state distribution and filing obligations for plan members that reside in a state with individual mandate reporting obligations. ▪ Employers with self-funded plans. Employers should confirm with their third-party administrator (“TPA”) or ACA form preparation vendor that the required state distribution and filing obligations for plan members that reside in a state with an individual mandate will be satisfied and whether any additional fees will be assessed.

USI Note. For employers with fully insured plans that are written outside of a state with an individual mandate or a self-funded health plan, if the carrier or TPA will not furnish or file the forms with state residents or the applicable state agency, the employer may be required furnish and/or file. This may require involvement with your payroll provider or other ACA reporting vendor to coordinate.

EMPLOYER NEXT STEPS
Employers with employees and/or plan members residing in a state (and/or the District of Columbia) with individual mandate reporting requirements should confirm state reporting requirements with their carrier, TPA or ACA vendor to ensure federal as well as state-level reporting obligations will be met.

Please contact your USI service team if you need more details on the state reporting requirements.

RESOURCES
▪ IRS Reporting Information: About Form 1095-C, Employer-Provided Health Insurance Offer and Coverage
▪ Paperwork Burden Reduction Act
▪ California: Report Health Insurance Information
▪ District of Columbia: Individual Taxpayer Health Insurance Responsibility Requirement Amendment Act Of 2018
▪ Massachusetts: Health Care Reform for Individuals
▪ New Jersey: NJ Shared Responsibility Requirement
▪ Rhode Island: Health Insurance Mandate
USI usi.com/locations
This summary is intended to convey general information and is not an exhaustive analysis. This information is subject to change as guidance develops. USI does not provide legal or tax advice. For advice specific to your situation, please consult an attorney or other professional.

These materials are produced by USI Insurance Services for educational purposes only. Certain information contained in these materials is considered proprietary information created by USI. Such information shall not be used in any way, directly or indirectly, detrimental to USI and/or their affiliates.

Neither USI nor any of its respective representatives or advisors has made or makes any representation or warranty, expressed or implied, as to the accuracy or completeness of these materials. Neither USI nor their respective representatives or advisors shall have any liability resulting from the use of these materials or any errors or omission therein. These materials provide general information for the use of our clients, potential clients, or that of our clients’ legal and tax advisors.

IRS Circular 230 Disclosure: USI Insurance Services and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with USI of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. © 2025 USI Insurance Services. All Rights Reserved.
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EXHIBIT III: SAMPLE ANNUAL SERVICE CALENDAR
104

USI Service Calendar for ABC
January 2021 Renewal Date

JANUARY FEBRUARY MARCH APRIL MAY JUNE
• Wellness: Financial
Wellness
• Wellness: Self-Care
• 2020 Service Calendar
Review/Development
- 2019 Debrief
- Claims Review
- Updated Claims
Projection
- JellyVision Utilization
- ID Theft Discussion
- HRA Discussion
- Student Loan
• Wellness: Preventive Care
• Dependent Audit
• Quarterly HRA Member
Communication
• Wellness: Resiliency
• Request BCBSIL
Renewals
• IDI Re-enrollment
• Population Health
Management (Wellness)
Discussion
• Student Loan Repayment
Discussion
• Wellness: Mental Health
• ERISA Compliance
Review/Refresher?
• Stewardship Meeting
- Renewal Projection
- 1
st Quarter Claims /
3D Report
- Marketing Strategy
- Cost Containment
- HSA/HRA Strategy for
2021
• Wellness: Sleep
Awareness
• Request Census
• Quarterly HRA
Communication

JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
• Wellness: Musculoskeletal
Back Pain
• 2
nd Quarter Claims Report
• Renewal Strategy
Document – HSA and HRA
plan
• Wellness: Ergonomics
• Marketing Process
• 2021 Renewal Meeting
- Cost Projection
- Claims Experience
- Vision Plan
- EE Contributions
- Voluntary Benefits
- Cost Containment
• Wellness: Pain
Management
• Finalize Rates and 2021
Plan Design Decisions
• Quarterly HRA
Communication
• Wellness: Cancer
Prevention
• Finalize Employee
Contributions, Stop Loss
and Open Enrollment
Communication
• Update Open Enrollment
Materials
• Wellness: Diabetes
• Employee Open
Enrollment
• Update and Send 2021
COBRA
• Wellness: Stress
• Complete and Sign All
Carrier Paperwork
• Complete Open Enrollment
Changes and Submit to
Carriers
USI Service Team
Benefits Consultant
Account Executive
Account Manager
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EXHIBIT IV: TEAM BIOS
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usi.com
Daniel Duzyk, GBA, REBC
Vice President
Employee Benefits
Daniel Duzyk is a Consultant and Sales Executive with the Employee Benefits group located in the Torrance, California, office. He started with USI in 2024 and has been working since 2011 with small to large-sized organizations with a specialization in public agencies where he focuses primarily on strategic planning and leadership.

Daniel has worked for several of the largest insurance brokerages in the country including Gallagher, Acrisure, and the Baldwin Group before joining USI where he has held intricate roles in account management and administration, underwriting, and consulting for large purchasing pools such as Voluntary Employee Benefits Associations (VEBAs), Joint Power Authorities (JPAs), Cooperatives (Co-Ops), and other Multiemployer funds.

Daniel holds a B.S. in Economics from San Diego State University and a M.S. in Financial Analysis from the University of San Francisco where he graduated with honors. His certifications include a GBA Designation through International Foundation of Employee Benefit Plans (IFEBP) and an REBC Designation through the National Association of Benefits and Insurance Professionals (NABIP).

USIInsurance Services LLC
21250 Hawthorne Blvd., Suite 380
Torrance, CA 90503
[email protected]
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USI Insurance Services LLC
21250 Hawthorne Blvd., 6th Floor
Torrance, CA 90503
Tel: 424.390.0012
[email protected]
CA DOI License # 0G11911
usi.com
Christine Kwock, GBA
Senior Account Executive
Employee Benefits
Christine Kwock is a Senior Account Executive in Employee Benefits in the Torrance, California, office. Christine is responsible for project management, carrier performance management, and assisting with compliance issues for midsized public and private sector employer groups.

Prior to joining USI (legacy Wells Fargo Insurance), Christine began her insurance career with the Prudential Insurance Company of America as an Account Technician. In 1991, she started working for Cal-Surance Benefit Plans, an Employee Benefits Brokerage firm that later became HCM Benefits. She started as an Account Representative then was promoted to Account Manager.

She mastered an excellent level of client satisfaction through her knowledge, dedication, and meticulous work ethic. Through acquisitions, her responsibilities expanded to managing projects, monitoring carrier performance, managing the Public Sector Pool and mentoring Account Executives. She is a USI Summit Award Winner which recognizes exceptional client service associates.

Christine earned her Associate of Arts degree in General Studies from El Camino College then her Bachelor of Science in Business Administration, concentration in Marketing from California State University, Northridge. She also obtained her Group Benefits Associate (GBA) designation through the International Foundation of Employee Benefit Plans and the Wharton School of the University of Pennsylvania and has her life license.

Christine is a member of the Girl Scouts of Greater Los Angeles and volunteers with her daughter’s Ambassadors Troop in philanthropic projects throughout the community. She also spends her time participating in beach clean ups in an effort to protect the beauty of the coast and marine life.

She is from sunny Southern California and resides in Rancho Palos Verdes, California, with her husband and teenage daughter.
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Pam Rodrigues
Account Manager
Employee Benefits
Pam Rodrigues is an Account Manager in Employee Benefits in the Torrance, California office. Pam manages the day-to-day administrative and /or member service issues; implementation and /or ongoing services of vendors; contract review and system of record management and updates, open enrollment communications and meeting coordination.

Pam joined USI (legacy Wells Fargo Insurance) team in 2008 as an Administrative Assistant and was later promoted to Account Manager. Prior to joining USI, Pam worked in the health industry in Human Resources as well as various other industries as an Executive/Administrative assistant.

She brings with her knowledge of benefits administration, project management and customer service.

Pam has her Group Benefits Disability Specialist (GBDS) designation.

Pam is originally from Missouri, and now resides in Orange, California with her husband. She has two adult sons, and one granddaughter.

USI Insurance Services LLC
21250 HawthorneBlvd., Suite 380
Torrance, CA 90503
Tel: 424.390.0030
[email protected]
CA DOI License# 0G11911
usi.com
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usi.com
Alicia Taylor, ASA, MAAA
Consulting Actuary
Employee Benefits
Alicia Taylor is a Consulting Actuary within the Employee Benefits practice in USI’s West Region. Her primary responsibilities include providing strategic guidance from an actuarial lens and performing various financial analyses. These services include but are not limited to – experience reporting, reserving, forecasting, pricing, funding cost comparisons, stop loss analysis, and selffunding education.

Alicia strives to provide clear, data-driven information so her clients can make optimal decisions in critical moments. She has a passion for presenting actuarial analyses in an accessible way for all her clients.

Prior to joining USI in 2023, Alicia spent 3 years at Marsh McLennan Agency in the Employee Benefits division. Beginning in early 2020, she quickly rose from Actuarial Analyst to Consulting Actuary and oversaw all aspects of actuarial and underwriting services for their San Diego office. Most of her time was focused on large self-funded clients and strategizing with fully insured clients who had an interest in alternative funding. Prior to transitioning to employee benefits, Alicia worked briefly in pension consulting as an Actuarial Analyst in 2019.

Alicia is an Associate of the Society of Actuaries (ASA) and a Member of the American Academy of Actuaries (MAAA). She holds a Bachelor of Arts in Mathematics degree and a Bachelor of Accountancy degree from the University of San Diego.

Alicia grew up in Portland, OR and currently lives in San Diego, CA with her partner and rescue dog. She volunteers weekly with a local nonprofit sanctuary that provides medical care for disabled animals.

USIInsurance Services LLC
Tel: 858.477.9226
[email protected]
110

usi.com
usi.com
Sylvia Joo, Esq.

Compliance Advisor
Employee Benefits
Sylvia Joo is an Employee Benefits Counsel with over six years of employee benefits experience. She supports USI professionals in the western United States with benefit compliance activities, including healthcare reform, ERISA, plan administration, and other legal compliance needs of client health and welfare benefit plans.

Before joining USI in 2025, Sylvia worked in a compliance role at a start-up restaurant group, addressing various compliance issues and overseeing benefit administration. She was also an ERISA litigation associate with Gordon Rees Scully Mansukhani LLP, representing large health insurers and TPAs in federal and state court. Sylvia is licensed to practice law in California and received her J.D. from Boston College Law School and B.A. from Loyola Marymount University.

USI Insurance Services LLC
21250 Hawthorne Blvd, Suite 380
Torrance, CA 90503
Tel: 424.390.0001
Fax: 610.537.2397
[email protected]
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usi.com
Kara Boley
Population Health Management Consultant
Employee Benefits
Kara joined USI in 2022 as a Population Health Management Consultant in the Phoenix office, continuing her 15+ years in the area of employee health. She collaborates with clients to provide clinical intervention strategies to mitigate risk, contain costs, enhance culture and supports their overall goals.

From 2016-2022 Kara was the Employee Wellness Coordinator for the City of Chandler, Arizona, helping to grow the wellness program from self-reported biometric data and Health Assessment Questionnaires into a comprehensive employee-focused benefit. Prior to that, she was an account manager for a thirdparty wellness vendor, managing a team of 7 employees and 35 clients in a variety of industries. Her primary responsibilities included strategic planning, incentive design, overall program development and implementation, and data analysis.

Kara also has experience as a Registered Dietitian working in a healthcare setting. This is where she gained clinical nutrition knowledge and familiarity with the healthcare system. She is also an adjunct nutrition instructor for Central Arizona College, where she helps students expand their knowledge of nutrition and nutrition literacy.

Kara earned her B.S. in Dietetics and M.A. in Family and Consumer Science from Western Michigan University in Kalamazoo, MI. She is a Registered Dietitian Nutritionist with a certificate of training in adult weight management from the Academy of Nutrition and Dietetics.

Born and raised in Michigan, Kara now resides in Chandler, AZ, where you’ll find her hiking, paddleboarding, or relaxing with a book.

USI Insurance Services LLC
2375 E. Camelback Road, Suite 250, Phoenix, AZ
Phoenix, AZ 85016
Tel: 602.374.1381
Mobile: 231.215.5757
Fax: 602.395.0222
[email protected]
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DISCLOSURES
CONFIDENTIAL AND PROPRIETARY: This document and the information contained herein is confidential and proprietary information of USI Insurance Services LLC (“USI”). Recipient agrees not to copy, reproduce, or distribute this document, in whole or in part, without the prior written consent of USI. Estimates are illustrative given data limitation, may not be cumulative, and are subject to change based on carrier underwriting.
© 2026 USI Insurance Services LLC. All rights reserved.

Compensation Disclosure
Information Concerning Our Fees
As a licensed insurance producer, USI is authorized to advise clients on the terms, conditions, and design of insurance contracts, and to market, place, and service insurance coverages on their behalf.

For the placement of insurance, USI is compensated in accordance with a written agreement between USI and the client. USI may also receive compensation from insurers and insurance intermediaries including, at times, USI-affiliated entities in the form of monetary or non-monetary payments. This compensation is based on aggregate factors such as volume of business, profitability, and other performance-based metrics, and cannot be attributed or broken out at the individual client level.

These payments support the overall resources required to service clients, including staffing, technology, and infrastructure, and are not tied to any individual consultant or service team member, thereby preserving objectivity in the advice provided. Clients may elect to opt out of certain forms of contingent compensation, subject to mutual agreement.
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CITY OF MONTEBELLO
PROFESSIONAL SERVICES AGREEMENT NO. 4641

WITH USI INSURANCE SERVICES, LLC
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into on October 14, 2026 (“Effective Date”), by and between the CITY OF MONTEBELLO, a California municipal corporation (the “CITY”) and USI Insurance Services LLC (the “CONSULTANT”). The CITY and the CONSULTANT are sometimes referred to herein individual as the “Party,” and jointly as the “Parties.”

RECITALS
WHEREAS, the CITY desires to retain a qualified professional consultant to provide employee ancillary benefits broker services; and WHEREAS, the CONSULTANT represents the degree of specialized expertise contemplated within California Government Code Section 37103 and is qualified to perform such services by virtue of its experience and the training, education, and expertise of its principals and employees; and
WHEREAS, no official or employee of the CITY has a financial interest, within the provisions of Sections 1090–1092 of the California Government Code, in the subject matter of this Agreement; and
WHEREAS, the CONSULTANT submitted a response to the City’s Request for Proposal No. 26-17 for Employee Ancillary Benefits Insurance Broker Services (“RFP No. 26- 17”); as such is set forth fully in Exhibit “A”; and
WHEREAS, the City evaluated the responses received and determined that the Consultant met the requirements of RFP No. 26-17 in a satisfactory manner.

NOW THEREFORE, in consideration of performance by the Parties of the covenants and conditions herein contained, the Parties hereto agree as follows:

SECTION 1. INCORPORATION OF RECITALS AND OTHER CONTRACT

DOCUMENTS
A. The above-referenced Recitals constitute a material part hereof and shall hereby be incorporated by reference. Moreover, this Agreement consists of the following documents, in order of precedence, all of which are incorporated herein and made part of this Agreement, as though fully set forth herein:
a. This Agreement and its Exhibits, including any and all addenda or supplemental agreements.
b. RFP 26-17, attached hereto as Exhibit “A”
c. The CONSULTANTS proposal dated July 15, 2026 and final price proposal to RFP No. 26-17 dated July 13, 2026, attached hereto as Exhibit “B”
d. All other documents, including but not limited to all applicable bonds, insurance certificates, permits, notices, schedules, forms, certifications, and affidavits.

B. These documents shall be collectively referred to herein as the “Contract Documents.” In the event of a conflict among the Contract Documents, the order of precedence list above shall apply.

SECTION 2. SERVICES / COMPENSATION.

A. All terms, conditions, requirements, and provisions of the services in RFP and consultant’s responses, as such is set forth fully in Exhibit “A” hereto, are hereby incorporated fully herein by this reference and shall be binding on the Parties.

To the extent of a conflict between the terms of this Agreement and that set forth in any exhibits or attachments hereto, the terms of this Agreement shall govern.

B. The CONSULTANT shall provide to the CITY all labor, equipment, materials and incidental necessary to provide services, as such is set forth fully in Exhibit “A” hereto and incorporated fully herein by this reference (hereinafter “Professional Services”).

C. The CONSULTANT shall be compensated for performance of the Professional Services as set forth in the Schedule of Compensation attached hereto as Exhibit “B” and incorporated fully herein by this reference (“Compensation”). The CONSULTANT shall provide an itemized billing statement to the CITY each month for Professional Services performed. The CONSULTANT shall no incur fees or costs which exceed the Compensation without the prior written consent of the CITY.

SECTION 3. TERM.
a. This Agreement shall commence upon issuance of a written “Notice to Proceed” (as further defined below) by the CITY and shall expire on October 13, 2029 unless terminated earlier as hereinafter provided. This Agreement may be extended through October 13, 2031, with mutual agreement from both parties. Each of the two (2), one (1) year options shall only be effective upon a duly executed amendment presented to the Montebello City Council for approval.
b. Notice to Proceed. Any work or service contemplated under this Agreement shall not commence until the CITY has issued a written Notice to Proceed issued by CITY’s applicable, department head.

SECTION 4. PERFORMANCE.
a. The CONSULTANT shall at all times, faithfully, competently, and to the best of its ability, experience, and talent, perform all tasks described herein. b. The CONSULTANT shall employ, at a minimum, generally accepted standards and practices utilized by companies engaged in providing similar services, as are required of Consultant hereunder, in meeting its obligations under this Agreement. c. The CONSULTANT shall be knowledgeable of and subject to all CITY ordinances, rules and regulations, standard operating procedures, and the supervisory chain of command.
d. The CONSULTANT shall have the right to retain, subject to the CITY's approval, additional individuals, consultants or subconsultants to assist in the completion of services as herein defined. Compensation for additional individuals, consultants or subconsultants shall be the sole and exclusive responsibility of the CONSULTANT.
e. The CONSULTANT shall retain all original reports, field and office notes, correspondence, calculations, maps, and other documents specifically related to the services provided by the CONSULTANT pursuant to this Agreement, other than documents which are exempt from disclosure pursuant to the attorney-client privilege or any other law. Said documents shall be made available for inspection by the CITY upon request.

SECTION 5. WORK PRODUCT.
a. The CONSULTANT hereby agrees that all work product produced pursuant to this Agreement and provided to the CITY during and upon completion of this Agreement, shall be the property of the CITY, and ownership of said work product shall be retained by the CITY. The CONSULTANT may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by the CONSULTANT.
b. All data, documents, discussion, or other information developed or received by the CONSULTANT or provided for performance of this Agreement are deemed confidential and shall not be disclosed by the CONSULTANT without prior written consent by the CITY. The CITY shall grant such consent if disclosure is legally required.

All such written products shall be returned to the CITY upon the termination or expiration of this Agreement. The CONSULTANT agrees that the covenants contained in this Section shall survive the expiration or termination of this Agreement.

SECTION 6. EXTRA SERVICES.

No extra services over and above the Compensation shall be rendered by the CONSULTANT under this Agreement unless such extra services first shall have been duly authorized in writing by the CITY’s City Manager (the “City Manager”).

SECTION 7. CITY SUPERVISION.

The City Manager shall have the right of general supervision of all work performed by the CONSULTANT and shall be the CITY’s agent with respect to obtaining the CONSULTANT’s compliance hereunder. No payment for services rendered under this Agreement shall be made without the prior approval of this agreement by the City Manager.

SECTION 8. TERMINATION.

In the event that either Party hereto fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, the non-defaulting party shall give the defaulting party written notice of the default, the nature of the default, and of the steps necessary to cure the default.
a. Termination for Cause. In the event that any of the provisions of the Agreement are violated by either party, the non-defaulting Party may terminate the Agreement by serving written notice upon the other Party, listing the violation(s) and its intent to terminate such Agreement unless within ten (10) days after the serving of such notice, such violation shall cease or be rectified, the contract shall upon the expiration of an additional thirty (30) days cease and terminate. Violations by the CONSULTANT which cannot be corrected within ten (10) days, said contract shall at the option of the CITY cease and terminate upon the giving of like notice. In the event of any such termination for default by the CONSULTANT, the CITY may take over the work and prosecute the same to completion by contract or otherwise for the account and at the expense of the CONSULTANT. The CONSULTANT and his sureties shall be liable to the CITY for any excess cost occasioned in the event of any such termination. This change shall not be construed to prevent the termination, for other causes authorized by law or other provisions of this contract. In the event of a termination for cause, the CONSULTANT shall only be entitled to the Compensation for those Professional Services satisfactory performed on or before the effective date of termination. b. Termination for Convenience. The CITY shall have the option, at its sole discretion and without cause, to terminate this Agreement in whole, or in part, by giving thirty (30) business days’ written notice to the CONSULTANT. Upon the termination of

this Agreement as provided herein, the CITY shall provide to the CONSULTANT the part of Compensation which would otherwise be payable to the CONSULTANT for services the CONSULTANT had completed as of the date of termination, less the amount of all previous payment with respect to the Compensation. Further, upon such a termination for convenience by the CITY, the Parties agree that the CONSULTANT shall be reimbursed for any “non-refundable” costs that the CONSULTANT has incurred for its services under this Agreement, provided that: (1) such “non- refundable” costs were incurred by the CONSULTANT prior to the date of termination, and (2) that t he CONSULTANT provides the CITY with adequate proof that the CONSULTANT incurred the costs, and is unable to be seek a refund for such costs. Such “nonrefundable” costs may include, but are not limited to, travel reservations incurred by the CONSULTANT for its performance of services under this Agreement. The CONSULTANT agrees to cease all work under this Agreement on or before the effective date of any notice of termination.

SECTION 9. EMPLOYMENT OF CITY EMPLOYEES.

No regular employee of the CITY shall be employed by the CONSULTANT during the term of this Agreement.

SECTION 10. NON-LIABILITY OF CITY OFFICIALS AND EMPLOYEES.

No official or employee of the CITY shall be personally liable to the CONSULTANT in the event of any default or breach by the CITY, or for any amount which may become due to the CONSULTANT.

SECTION 11. INDEPENDENT CONSULTANT.
a. The CONSULTANT is and shall, at all times, remain as to the CITY a wholly independent consultant. Neither the CITY nor any of its elected officials, officers, employees, or agents shall have control over the conduct of the CONSULTANT except as expressly set forth in this Agreement. The CONSULTANT shall not at any time or in any manner represent that he or she is in any manner an elected official, officer, employee, or agent of the CITY. No employee benefits shall be available to the CONSULTANT in connection with the performance of this Agreement. Except as provided in this Agreement, the CITY shall not pay salary, wages, or other compensation to the CONSULTANT for performance hereunder for the CITY, the CITY shall not be liable for compensation to the CONSULTANT, the CONSULTANT’s employees or the CONSULTANT’s subconsultants for injury or sickness arising out of performing services hereunder.
b. The parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship or any other relationship except as set forth in this Agreement. c. The CITY shall not deduct from the Compensation paid to t he CONSULTANT any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to the CONSULTANT. The CITY shall have no responsibility to provide the CONSULTANT, its employees or subconsultants with workers’ compensation insurance or any other insurance.

SECTION 12. CalPERS ANNUITANTS AND ELIGIBILITY INDEMNITY. a. If the CONSULTANT is a California Public Employees’ Retirement System (“CalPERS”) annuitant, the CONSULTANT must provide the CITY with written notification of such fact a minimum of 14 calendar days prior to commencement of

services under this Agreement. Failure to provide such notification may result in termination of the Agreement, and any penalties or other costs relating thereto shall be borne by the CONSULTANT. If this Agreement remains in place, the CONSULTANT shall execute any amendment(s) to this Agreement requested by the City in order to comply with all laws and regulations applicable to CalPERS annuitants. b. In the event that the CONSULTANT or any employee, agent, or subconsultant of the CONSULTANT providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the CITY, t he CONSULTANT shall indemnify, defend, and hold harmless the CITY for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of t h e CONSULTANT or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the CITY. c. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, the CONSULTANT and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by t h e CITY, including but not limited to eligibility to enroll in PERS as an employee of the CITY and entitlement to any contribution to be paid by t he CITY for employer contribution and/or employee contributions for PERS benefits.

SECTION 13. LEGAL RESPONSIBILITIES.

The CONSULTANT shall at all times observe and comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local governments including, but not limited to the Montebello Municipal Code. The CITY, and its appointed or elected officers, employees, or agents, shall not be liable at law or in equity occasioned by failure of the CONSULTANT to comply with this section.

SECTION 14. INDEMNIFICATION.

The CONSULTANT agrees to, and shall defend, indemnify, protect and hold harmless, the CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers from and against any and all claims, demands, lawsuits, defense costs, civil, penalties, expenses, causes of action, and judgments at law or in equity, or liability of any kind or nature which the CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers may sustain or incur or which may be imposed upon them for injuries or deaths of persons, or damage to property arising out of t he CONSULTANT’s negligent or wrongful act, or omission under the terms of this Agreement, except only liability arising out of the sole negligence of the CITY.

SECTION 15. INSURANCE COVERAGE.
a. During the term of this Agreement, the CONSULTANT shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with CONSULTANT’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:

Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis for bodily injury and property damage, including products-completed operations, personal injury, and

advertising injury, with limits no less than $2,000,000 per occurrence, $4,000,000 aggregate.

Automobile Liability Insurance: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if CONSULTANT has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

Worker's Compensation insurance as required by the laws of the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

Professional Liability insurance appropriate to the CONSULTANT’S profession, with limit no less than $2,000,000 per occurrence or claim, $4,000,000 aggregate.
b. If the CONSULTANT maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT.
c. The CONSULTANT shall require each of its subconsultants, if any, to maintain insurance coverage that meets all of the requirements of this Agreement. d. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a current rating of at least A:VII in the latest edition of Best's Insurance Guide.
e. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (ten [10] days for nonpayment) has been given to the CITY. The CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect the CITY may either (i) immediately terminate this Agreement for Cause; or (ii) take out the necessary insurance and pay, at the CONSULTANT’s expense, the premium thereon. f. Evidence of Insurance prior to commencement. The CONSULTANT shall provide to the CITY Certificate(s) of Insurance evidencing such coverage together with copies of the required policy endorsements no later than five (5) business days prior to commencement of service and at least fifteen (15) business days prior to the expiration of any policy. Unreasonable failure to provide such evidence may be cause for termination of the Agreement as provided herein or delay the services’ commencement date. The evidence of insurance shall be U.S. mail or email to:

City of Montebello
Attn: Principal Risk Officer
1600 West Beverly Boulevard
Montebello, CA 90640
Email: [email protected]
g. Coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits, non-renewed, or materially changed for any reason, without thirty (30) days prior written notice thereof given by the insurer to the CITY by U.S. mail, or by personal delivery, except for nonpayment of premiums, in which case ten (10) days prior notice shall be provided.
h. Evidence of Insurance during the entire term of the Agreement. At all times during the term of this Agreement, the CONSULTANT shall maintain on file with the

CITY’s Principal Risk Officer a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming the CITY as an additional insured. The CONSULTANT shall, prior to commencement of work under this Agreement, file with the CITY’s Principal Risk Officer such certificate(s). i. The CONSULTANT shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages.
j. The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming the CITY, its officers, employees, agents and volunteers as additional insured’s. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to the CITY. The CONSULTANT agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.
k. The insurance provided by the CONSULTANT shall be primary to any coverage available to the CITY. Any insurance or self-insurance maintained by the CITY, its officers, employees, agents, or volunteers, shall be in excess of CONSULTANT’s insurance and shall not contribute with it.
l. All insurance coverage provided pursuant to this Agreement shall not prohibit the CONSULTANT, and CONSULTANT’s employees, agents or subconsultants, from waiving the right of subrogation prior to a loss. The CONSULTANT hereby waives all rights of subrogation against the CITY.
m. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, the CONSULTANT shall either reduce or eliminate the deductibles or self-insured retentions with respect to the CITY, or the CONSULTANT shall procure a bond guaranteeing payment of losses and expenses. n. Procurement of insurance by the CONSULTANT shall not be construed as a limitation of the CONSULTANT'S liability or as full performance of CONSULTANT’s duties to indemnify, hold harmless and defend under the indemnity covenants of this Agreement.

SECTION 16. SUBCONTRACT, ASSIGNMENT OR DELEGATION.

The CONSULTANT shall not subcontract, delegate, or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of the CITY. Any proposed subcontract, delegation, or assignment shall provide a description of the services to be covered, identification of the proposed sub-consultant, delegee, or assignee, and an explanation of why and how the same was selected, including the degree of competition involved.

Any subcontract, delegation or assignment shall be made in the name of the CONSULTANT and shall not bind or purport to bind the CITY and shall not release the CONSULTANT from any obligations under this Agreement including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegees or sub-consultants. No such subcontract, delegation or assignment shall result in any increase in the amount of total compensation payable to the

CONSULTANT under the Agreement.

SECTION 17. NO WAIVER.

Waiver by any party hereto of any term, condition or covenant of this Agreement shall not constitute the waiver of any other term, condition, or covenant hereof.

SECTION 18. DISPUTE RESOLUTION; GOVERNING LAW.

Disputes regarding the interpretation or application of any provision(s) of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the Parties. If any action at law or in equity is brought to enforce this Agreement or because of alleged dispute, breach, default or misrepresentation in connection with the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney’s fees, expert fees, costs and necessary disbursements incurred in that action or proceeding, in addition to such other relief as may be sought and awarded. The venue for any litigation shall be County of Los Angeles, California. The Parties agree that the covenants contained in this Section shall survive the expiration or termination of this Agreement.

SECTION 19. ATTORNEY’S FEES AND COSTS.

If litigation is reasonably required to enforce or interpret the provisions of this Agreement, the prevailing party in such litigation shall be entitled to an award of reasonable attorney's fees and costs in addition to any other relief to which it may be entitled.

SECTION 20. WARRANTIES.

Each of the parties represents and warrants to one another as follows:
a. It has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement; b. In executing this Agreement, it has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any other party, or any other person or entity, not expressly set forth herein, nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever; and c. It is agreed that each party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either party has the full right and authority to fully commit and bind such party to the provisions of this Agreement.

SECTION 21. MISCELLANEOUS.
a. The descriptive paragraph headings of this Agreement are included for purposes of convenience only and shall not control or affect the construction of interpretation of any of its provisions.
b. Whenever the context hereof shall so require, the singular shall include the plural, the male gender shall include the female gender, and the neuter and vice versa. c. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity,

illegality, or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained herein.
d. The representations and warranties made by the parties to this Agreement shall survive the consummation of the transaction herein described. e. This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the party whose signature appears in the facsimile and shall be binding upon such party in the same manner as though an originally signed copy had been delivered. f. Each of the parties acknowledges that it has been represented by independent counsel of its own choosing, or if it has not been so represented, it has been admonished to obtain independent counsel and has freely and voluntarily waived and relinquished the right to counsel. Each party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such party’s failure to perform under this Agreement or any agreement referred to in this Agreement.

SECTION 22. NOTICE.

All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered via e-mail (an “Electronic Notice” as further defined below), personally or on the second (2nd) business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals hereunder shall be given to the following addresses or such other addresses as the Parties may designate by written notice:

If to CITY: City of Montebello
Attn: Raul Alvarez, City Manager
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200
Email: [email protected]
With a copy to: City of Montebello – Department of Finance Attn: Michael Solorza
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887 – 1200
Email: [email protected]
If to Consultant: USI Insurance Services LLC
Attn: Daniel Duzyk
21250 Hawthorne Blvd. Suite
380, Torrance, CA 90503
(858) 477-9227
Email: [email protected]
An electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this section if sent to the electronic mail address specified above.

Electronic Notice shall be deemed received at the time the party sending Electronic

Notice receives verification of receipt by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form.

SECTION 23. NON-DISCRIMINATION AND EQUAL OPPORTUNITY
EMPLOYER.

In the performance of this Agreement, the CONSULTANT shall not discriminate against any employee, sub-consultant, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, mental condition or sexual orientation. The CONSULTANT will take affirmative action to ensure that sub-consultant and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

SECTION 24. CONFLICT OF INTEREST.

The CONSULTANT covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by the CONSULTANT under this Agreement, or which would conflict in any manner with the performance of its services hereunder. The CONSULTANT further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, the CONSULTANT shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this Agreement.

The CONSULTANT covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to t he CITY as a result of the performance of this Agreement, or the services that may be procured by the CITY as a result of the recommendations made by the CONSULTANT. The CONSULTANT's covenant under this section shall survive the termination of this Agreement.

SECTION 25. ENTIRE AGREEMENT.

This Agreement contains the entire understanding between the CITY and the CONSULTANT. Any prior agreements, promises, negotiations or representations not expressly set forth herein are of no force or effect. Subsequent modifications to this Agreement shall be effective only if in writing and signed by each party. If any term, condition, or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall be valid and binding.

SECTION 26. EXTENSION TO OTHER PUBLIC AGENCIES
Unless otherwise specified in writing, the CONSULTANT agrees that the prices, terms, and conditions identified in the Proposal (Exhibit “A”) and Agreement may be extended to other governmental agencies at the mutual agreement of both the public agency and awarded CONSULTANT. All requirements of the specifications, purchase orders, invoices, and payments with other agencies shall be directly with the CONSULTANT.

CONSULTANT acknowledges and agrees to the extension of these contract terms to other governmental agencies conditioned upon the agreement of the CONSULTANT with the governmental agency. This provision in no way guaranteed that the CONSULTANT will agree to enter into a contract with a governmental agency pursuant to this Section.

[SIGNATURE PAGE TO FOLLOW]

IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Agreement as of the date first written above. (“CITY”) (“CONSULTANT”)
CITY OF MONTEBELLO USI Insurance Service LLC
Raul Alvarez, City Manager (CONSULTANT SIGNATORY, TITLE) ATTEST:

Christopher Jimenez, City Clerk
APPROVED AS TO FORM:

Arnold M. Alvarez-Glasman, City Attorney
EXHIBITS:
• Exhibit A – Proposal: USI Insurance Services LLC
• Exhibit B – Cost Proposal

22 Exhibit “B”
Cost Proposal
In accordance with the Request for Proposal issued by the City of Montebello (hereinafter referred to as Broker/Consultant), the undersigned proposing company hereby agrees to furnish all necessary labor, materials and incidentals required for the above stated contract as set forth in the Scope of Work and any addenda thereto, and to perform all work in the manner and time prescribed therein.

DESCRIPTION FIXED ANNUAL RATE
A CONTRACT YEAR 1 $ 60,000
B CONTRACT YEAR 2 $ 60,000
C CONTRACT YEAR 3 $ 60,000
Total forinitial 3 year contract period $ 180,000

OPTIONAL RENEWAL PERIODS
D CONTRACT YEAR 4 $62,500
E CONTRACT YEAR 5 $62,500

23 Exhibit “B”
Cost Proposal
The above amounts include salary cost, fringe benefits, overhead, operating margin and profit, and all direct and indirect expenses.

Please include above any other potential additionalservicesthat may be required and associated costs. (Attach your hourly and expense schedule for any additional work outside of scope of services.)

City of Montebello
Response to RFP #26-17 Employee Ancillary
Benefits Insurance Broker Services
July 16th, 2026
Daniel Duzyk
Vice President, Employee Benefits
USI Insurance Services LLC
21250 Hawthorne Blvd. Suite 380
Torrance, CA 90503
619.254.2521
[email protected] www.USI.com

Daniel Duzyk
USI Insurance Services
21250 Hawthorne Blvd. Suite 380
Torrance, CA 90503
July 16, 2026
Grant Leggette II
Assistant Director of Human Resources
City of Montebello
1600 West Beverly Boulevard
Montebello, CA 90640
Dear Mr. Leggette:

USI Insurance Services (USI) is pleased to submit this proposal in response to the City of Montebello's Request for Proposals for Employee Ancillary Benefits Insurance Broker Services. We are particularly excited for the opportunity to reconnect with the City, having previously served as Montebello's employee benefits consultant from 2002 - 2023. Our prior partnership provided valuable insight into the City's workforce, culture, and benefits objectives, and we would welcome the opportunity to once again support the City as a trusted advisor.

The City operates in a complex public-sector environment that requires balancing fiscal responsibility, employee engagement, compliance obligations, and labor relations considerations. USI's public-sector consulting model is specifically designed to help organizations navigate these challenges through datadriven recommendations, responsive service, and strategic planning that supports both organizational goals and employee needs.

USI serves more than 1,200 public-sector clients nationwide, including cities, counties, school districts, special districts, and Joint Powers Authorities throughout California. Our team understands the governance requirements, bargaining environments, transparency expectations, and regulatory requirements unique to public agencies. Having previously worked with the City, we also understand the importance of delivering practical solutions, exceptional service, and measurable value while continuing to bring fresh ideas and current market best practices to the relationship.

For the City of Montebello, USI will provide:
▪ Strategic consulting and long-range planning for dental, vision, disability, EAP, wellness, and voluntary benefit programs.
▪ Benchmarking against California public agencies and municipalities to identify opportunities for enhancement and cost containment.
▪ Carrier negotiations, renewal management, procurement support, and vendor oversight. ▪ Financial analysis, enrollment reporting, and cost modeling to support budgeting and labor discussions.
▪ Dedicated advocacy and account management support for claims, eligibility, billing, and employee service issues.
▪ Ongoing compliance guidance related to ACA, HIPAA, COBRA, Section 125 requirements, nondiscrimination testing, and legislative developments.

Daniel Duzyk
USI Insurance Services
21250 Hawthorne Blvd. Suite 380
Torrance, CA 90503
▪ Employee communication and education support, including open enrollment meetings, benefit guides, presentations, wellness initiatives, and retirement education.

Our service model is structured to function as an extension of the City's Human Resources team. Local consultants are supported by specialized compliance, communications, analytics, and client advocacy professionals with extensive California public-sector experience. This approach allows us to deliver both strategic expertise and the day-to-day responsiveness needed to support City staff, employees, and retirees.

USI is committed to dedicating the personnel, resources, and expertise necessary to successfully serve the City throughout this engagement. We appreciate your consideration and look forward to the opportunity to help Montebello strengthen its ancillary benefits program through strategic guidance, proactive service, and innovative solutions that deliver lasting value.

Sincerely,
Daniel Duzyk
Vice President
858.477.9227
[email protected]
CA DOI License # 0L11884

TABLE OF CONTENTS
PROJECT UNDERSTANDING AND APPROACH .......................................................................2 RELEVANT EXPERIENCE ...........................................................................................................13 SCOPE OF WORK....................................................................................................................20 CONFLICT OF INTEREST STATEMENT .......................................................................................24 COST PROPOSAL ....................................................................................................................25 APPENDICES ............................................................................................................................26 APPENDIX B: SAMPLE AGREEMENT...................................................................................27 APPENDIX C: COST PROPOSAL ........................................................................................41 APPENDIX D: REFERENCES ................................................................................................44 EXHIBITS....................................................................................................................................47 EXHIBIT I: SAMPLE BBS REPORT ..........................................................................................48 EXHIBIT II: NATIONAL COMPLIANCE UPDATE ...................................................................100 EXHIBIT III: SAMPLE ANNUAL SERVICE CALENDAR...........................................................104 EXHIBIT IV: TEAM BIOS ........................................................................................................106 DISCLOSURES...........................................................................................................................113 1

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PROJECT UNDERSTANDING AND APPROACH
Please include a statement demonstrating your understanding of the proposed project. Describe your general approach to completing the project successfully, methodologies and technologies you would employ, key milestones and processes you would employ. Describe what information you would expect the City to supply.

Key Elements of USI's Approach
 Former benefits consultant to the City of Montebello (2002–2023).  Dedicated public-sector practice serving more than 120 California public agencies.  Strategic focus on ancillary benefit sustainability, employee engagement, and cost containment  Proprietary municipality ancillary benefits pool
 Dedicated labor-relations and bargaining support.
 Comprehensive compliance and regulatory resources.
 Employee advocacy through USI's Benefit Resource Center.  Local service team supported by specialized compliance, communications, and analytics professionals.
 Structured planning, renewal, and stewardship process designed to function as an extension of the City's Human Resources Department.

Understanding of the Project
The City of Montebello is seeking a strategic ancillary benefits consulting and brokerage partner capable of supporting the full lifecycle of its employee and retiree ancillary benefits programs. The City is seeking more than renewal management; it is seeking a consultant that can provide strategic guidance, cost-containment recommendations, vendor management, compliance support, employee communications, and day-to-day service assistance while helping the City maintain competitive and sustainable benefit offerings.

USI understands that the City's priorities include maintaining high-quality ancillary benefits, delivering responsive service to employees and retirees, ensuring regulatory compliance, supporting labor-relations objectives, and identifying opportunities to improve program effectiveness while managing costs. We also recognize the importance of providing practical recommendations that can be effectively implemented within a public-sector environment governed by budget considerations, collective bargaining obligations, and transparency requirements.
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Our approach is designed to function as an extension of the City's Human Resources Department, providing strategic consulting, technical expertise, and hands-on support throughout the year rather than only during renewal periods.

Labor Relations and Collective Bargaining Support
USI recognizes that employee benefits are often among the most significant and sensitive issues addressed during collective bargaining. As a public-sector consultant serving California cities, counties, school districts, community colleges, special districts, and Joint Powers Authorities, we understand the importance of providing objective analysis and practical guidance that supports management's bargaining objectives while maintaining competitive and sustainable benefit programs.

At the City's direction, USI will support Human Resources and executive leadership by providing:
 Financial modeling of proposed benefit changes and negotiated alternatives.  Cost projections associated with ancillary benefits, including dental, vision, life, disability, EAP, and voluntary benefit programs.
 Multi-year budget forecasting to evaluate the long-term impact of bargaining proposals.  Contribution strategy analysis and plan design modeling.  Benchmarking against comparable California municipalities and public agencies.  Development of exhibits, presentations, and supporting materials for labor discussions and executive review.
 Attendance at bargaining preparation meetings and negotiation sessions, as requested.  Strategic consultation regarding market trends, benefit competitiveness, and workforce attraction and retention considerations.

Our role is to provide the City with accurate data, objective recommendations, and timely analysis that supports informed decision-making. By combining deep public-sector experience with robust analytical capabilities, USI helps clients evaluate potential outcomes, understand financial implications, and effectively communicate benefit-related proposals throughout the bargaining process.

Strategic Review and Planning
USI believes a strategic plan for the City’s benefit program is essential to achieve your organizational goals. We use a proven, three-tier process to help you develop and manage a long-term benefits strategy that supports employee engagement, program competitiveness, and responsible cost management. The process involves the planning session, a strategic plan, and the stewardship report. This strategic review will focus specifically on the City’s non-medical employee benefit programs, including dental, vision, life, disability, voluntary benefits, flexible spending accounts, and wellness offerings, which together represent a critical component of the City’s total benefits strategy. All recommendations are advisory in nature and implemented only at the City’s direction, with scope, timing, and priorities established collaboratively with City staff.
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Tier 1 – Planning Session
A structured planning session is the foundation of an effective long-term benefits strategy.

This session brings together key stakeholders to align on financial goals, workforce needs, and program objectives. It also provides a clear view of current performance and future priorities.

Prior to the session, USI completes a detailed review of the City’s programs, including cost drivers, utilization trends, and benchmarking against comparable public agencies.

During this session, we will review and discuss:
 Financial and utilization trends to identify outstanding issues.  Demographic and participation data and any anticipated changes in workforce.  Network access, discount structures, and provider availability within dental and vision programs.  Summary Plan Descriptions (SPDs) and any gaps in plan design.  Benefit communication materials inventory - what’s working and what’s missing.  Benchmarking plan design, total cost, cost by plan, contribution strategy, and wellness initiatives.  Compliance issues identified current or future.
 Feedback on where you want to be both financially, culturally, and competitively.  Employee survey results – if you have conducted or what we can do to assist in executing.

We consider the strengths of the existing programs, identify any weaknesses, and determine cost effectiveness, competitiveness, and the administration efficiency of each program. Each ancillary and voluntary benefit program is evaluated independently to ensure recommendations are appropriately tailored to its distinct cost drivers, utilization patterns, and employee experience considerations.

Advantages of a
Formal Planning
Session Include:
▪ Aligns key stakeholder expectations
▪ Bridges the historic gap between HR, finance, senior management, and employee concerns ▪ Establishes a clear understanding of your employee benefits and HR needs ▪ Generates innovative solutions
▪ Encourages optimum senior support for your initiatives ▪ Creates a road map to success
We collaborate with you to align the City’s strategic benefits plans with your organization’s contractual, clinical, operational, and cultural needs for the near and long-term.

Contractual Clinical Operational Cultural
Finding the lower overall
cost and improved
contractual terms for
savings and optimal
efficiency
Identifying ways to improve
the health of your
employees
Designing
recommendations to
enhance the end users’
experience
Aligning recommendations
with your organizational
structure
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Once we understand the City’s culture and needs, the approach we take is to carefully analyze enrollment, utilization, vendor performance, and employee engagement data, and primary cost drivers.

Our multi-disciplinary team makes specific recommendation in all areas of your benefit program that would help increase the health of the population, help control cost over time, increase employee satisfaction and competitiveness of the benefit plan and ensure a sustainable benefit program. Those recommendations are then presented by our local team to share with you the immediate cost savings/plan improvements and long-term impact.

With this process, we are equipped to:
 Review and implement efficient HR processes and effective communication tools that work cohesively with your overall benefit objectives.
 Help you make educated decisions on how to invest in your benefits program.  Manage implementation as seamlessly as possible.
 Provide ongoing support for your HR department and your employees.  Track and report critical indicators of plan success to make changes where necessary.

Tier 2 – Strategic Plan
Following the planning session, we build a multi-year strategy aligned with the City’s financial and operational goals.

The plan serves as a working roadmap for benefit decisions, vendor management, and cost control. It is reviewed and adjusted regularly based on performance and changing conditions.

The plan typically spans 1 – 3 years, understanding that through the Annual Stewardship Review process, the plan will be amended as results emerge and the operating environment within your organization changes. The plan will address both short and long-term goals. While informed by enterprise-level best practices, the strategic plan as applied to this engagement will focus on the City’s non-medical benefit programs and their interaction with contribution strategy, vendor performance, compliance, and employee engagement.

The elements of the plan follow the seven (7) key areas of our employee benefits practice including:
 Financial Analysis and Benchmarking
 Ancillary Benefits Strategy
 Employee Communications and Engagement
 Compliance and Regulatory Support
 Vendor Performance Management
 Wellness and EAP Optimization
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 Labor Relations Support
 Voluntary Benefits Strategy
Please see Exhibit I for Sample Benchmarking BBS Report We recognize that ancillary benefits play an important role in supporting employee well-being, workforce engagement, and total rewards strategy. Our objective is to help the City maintain competitive, sustainable, and employee-valued benefit programs through proactive planning, effective vendor management, ongoing benchmarking, and strategic consulting support. In support of this approach, and to ensure ongoing alignment of your benefits strategy with your organizational culture, we work with you to create a 3- to 5-year, multi-year benefits strategy that’s based not only upon data and analysis, but also upon our understanding of your past benefit strategies, as well as your current goals and desired outcomes.

Multi-Year Benefits Strategy
Short-Term Goals
2026
Mid-Term Goals
(2027-2028)
Long-Term Goals
(2028 +)
Plan Design ▪ Evaluate network and
carrier options
▪ Re-evaluate plan
administrator options
▪ Evaluate ancillary plan
design opportunities
across dental, vision,
disability, EAP, and
voluntary benefit offerings
▪ Evaluate employee
engagement strategies
and value-added benefit
enhancements.
▪ Maintain competitive and
sustainable ancillary
benefit programs while
supporting compliance
obligations and employee
satisfaction.
▪ Balance affordability,
employee value, and longterm program
sustainability.

Communication ▪ Develop communication
strategy: methods of
communication and topics
▪ Consider the various
generations at work and
types of communication
each prefer
▪ Continue to enhance and
develop ongoing
communication
▪ Introduce enhanced
technology tools that
drive engagement
▪ Engage employees to be
good stewards
Financial ▪ Reevaluate contribution
strategy
▪ Review contracts for cost
savings
▪ Evaluate carrier
partnerships, vendor
performance, and
opportunities to improve
cost efficiency and service
outcomes.
▪ Avoid exposure to excess
costs and inefficiencies
▪ Maintain stable ancillary
benefit costs through
proactive negotiations,
vendor management, plan
optimization, and ongoing
market benchmarking
Administrative ▪ Ensure vendors are
meeting needs
▪ What improvements can be made?
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Short-Term Goals
2026
Mid-Term Goals
(2027-2028)
Long-Term Goals
(2028 +)
Compliance ▪ Review service provider
contracts
▪ Conduct Compliance
Review
▪ 1095C reporting
▪ Provide ongoing updates
regarding ACA, HIPAA,
COBRA, Section 125,
nondiscrimination testing,
and other applicable
benefit regulations
▪ Provide Annual
Compliance Reminders
▪ Maintain compliance with
applicable federal and
state benefit regulations
and reporting
requirements
▪ Ensure proper
administration of group
health plans
Wellness ▪ Evaluate wellness program
▪ Look at areas of health and
productivity
▪ Assist with design and
implementation of
program
▪ Wellness campaigns and
challenges, including
financial wellness
components
▪ Evaluate employee
participation, engagement
levels, EAP utilization, and
effectiveness of wellness
and financial wellness
initiatives
It is important to note that our Annual Planning Schedule is reviewed at every scheduled meeting to see if any adjustments are needed based on recent developments. Any adjustments are then made to the service plan as well as the above strategy found.

Advantages of a
Strategic Plan
Include:
▪ Provides a common blueprint for all participants
▪ Creates a reasonable timeline to accomplish goals without over-utilizing your resources ▪ Allows participants to work on the current year initiatives while keeping an eye on future goals
▪ Organizes initiatives by subject area
▪ Serves as the basis for the annual stewardship report Tier 3 – Stewardship Report
We meet with your HR team annually to review a detailed stewardship report as a key step towards achieving the results you desire. The stewardship report provides opportunity for both future planning and historic review to evaluate USI’s deliverables, and to gain feedback from the City on whether we have met your expectations towards our mutual goals.

Advantages of a
Stewardship Report
Include:
▪ Identifies risk and opportunities
▪ Manages expectations of all parties — your human resources team, senior management, and your local account team
▪ Reviews progress toward goals
▪ Allows for adjustment of responsibilities
▪ Clarifies our value proposition to you
▪ Strengthens the relationship between you, your organization, and USI The following outlines in more detail the stewardship process:
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Annual Benefits Strategy Based upon Total Rewards Objectives  Benchmark plan design and employee
contribution data against local and industry
peers
 Review plan financial performance
 Discuss annual objectives and determine
initiatives
 for the upcoming year
 Review plan performance and discuss
alternative designs
 Discuss current benefit trends
Compliance Review
 Review welfare benefits compliance issues (ACA, COBRA, HIPAA, FSAs, etc.)  Provide plan documentation services
Please see Exhibit II for Sample National Compliance Update Annual Renewal Strategy and Negotiation
 Renewal request completed and renewals received from in-force carriers  Evaluation and negotiation of in-force renewals
 Tiered and narrow networks evaluated, plan design alternatives modeled, contribution strategies assessed, and impact analysis completed
Ancillary Programs Optimization
 Dental Plan Benchmarking
 Vision Plan Market Review
 EAP Review
 Life/Disability Program Evaluation
 Day-to-day issue resolution
 Voluntary Benefit Strategy
Employee Advocacy Services
 Escalated Claim Resolution
 Eligibility Issue Resolution
 Premium Billing Support
 Enrollment Discrepancy Resolution
 Retiree Support
Service Provider Analysis/Market Review
 Consider key decision-making criteria
 Create and release client-specific RFP to carriers
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 Produce a summary report (includes financial analysis, change management issues, service provider scoring, etc.)
 Schedule finalist meetings/site visits
Annual Enrollment/Communication Strategy
 Develop annual enrollment timeline
 Create and execute communication strategy
 Participate in open enrollment meetings/health
fairs
 Implement new and/or review administrative
processes/solutions
Year-End Review
 Measure the benefits program and service results
 Review service provider documents/booklets/contracts
 Evaluate service provider performance/performance guarantee true-up Continuous Improvement Model
Our approach to developing, implementing, and ensuring ongoing alignment of the City’s benefit programs to your vision is founded on a Continuous Improvement Model. This approach, in which we go through a continual process of discovery, analysis, planning, and implementation with each benefit plan component, incorporates the use of industry and peer benchmarking, identifying appropriate performance metrics, evaluation of best practices, and incorporating innovation.

Annually, we identify the primary goals that are to be achieved in the benefit program, set a strategy and timeline for completion, and track and measure success.

Discovery: ▪ Qualitative (discussion, survey) and
quantitative (data).

Analysis:
▪ Compare the City’s situation to
standards/benchmarks and identify gaps
and opportunities in plan’s performance.

Recommendation: ▪ Propose actions/solutions to address plan performance gaps.

Execution: ▪ Implement actions/solutions chosen by the
City.

Stewardship: Monthly service calls and periodic plan
performance reviews.

Implementation Timeline
USI begins each engagement by conducting a comprehensive review of the City's ancillary benefits programs, vendor relationships, administrative processes, employee communication strategy, and overall program objectives. Working collaboratively with Human Resources staff, we identify opportunities to enhance employee and retiree experiences, strengthen vendor accountability, improve administrative 9

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efficiency, and support the City's long-term strategic and financial goals. The resulting implementation roadmap establishes clear priorities, responsibilities, timelines, and performance expectations to ensure a successful transition and ongoing partnership.

Our first step will be to schedule an implementation and high-level planning meeting to establish clear expectations and short- and long-term objectives. Your USI account service team lead will request necessary vendor information and documents to populate our internal systems for launch of our fullservice platform, including account management, analytics, and the Benefit Resource Center (BRC).

Areas of analysis and solutions we may approach with the City during the first months of service include:
 Short-/long-term planning to meet your company goals
 Alternative ancillary plan design options
 Actionable solutions via our OMNI Knowledge Engine™
 Benchmarking of current plans
 Vendor optimization opportunities
 Voluntary benefit enhancements
Sample Transition Timeline
The sample timeline provided below is based on previous, successful transition of clients. The schedule can be adjusted as necessary to best suit the needs of the City’s decision-making process and to perform any other tasks identified for more immediate action. Most of the work described in the steps below will be performed by USI, and we will confer with you throughout the process to learn your culture and understand the best way to communicate with your employees and their families.

The following sample transition timeline outlines the steps we take to help ensure the process is completed in a timely and organized fashion. We will employ a Renewal Timeline and an Annual Service Calendar to ensure accountability at all major milestones throughout the process and the balance of the benefit year.

The City’s transition plan will be developed according to your specific needs.

Phase 1 – Discovery & Assessment
• Data gathering
• Vendor introductions
• Program review
• Goals discussion

KEY TAKEAWAY
We believe that what we do in the first 100 days sets the trend for our entire relationship.
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Phase 2 – Strategic Planning
• Benchmarking
• Financial review
• Vendor assessment
• Multi-year planning
Phase 3 – Market Evaluation & Negotiation
• Renewal negotiations
• Market review
• Evaluation of alternatives
Phase 4 – Implementation
• Vendor transitions
• Enrollment preparation
• Communication materials
Phase 5 – Ongoing Support
• Employee advocacy
• Compliance monitoring
• Strategic reviews
• Annual planning
Project Tracking
The USI service delivery model is designed to provide exceptional HR support. The key to our model is the Annual Service Calendar. This calendar ensures everyone involved in the service delivery, both the USI account team and the City’s Human Resources team, is aware of the shared responsibilities and accountabilities inherent in the successful execution of an employee benefits program.

Upon selection as your broker, together the City and USI agree on a schedule of meetings for the upcoming year and incorporate them into the calendar along with other USI deliverables designed to support your health and welfare plan.

USI account service team members
keep the City informed of recent
developments and new products that
may impact your benefit plan. In
addition to regularly scheduled
meetings, urgent matters are
communicated upon receipt. Our
National Compliance and Population
Health Management teams distribute
e-newsletters that are easy to share
with employees.
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Please see Exhibit III for Sample Annual Service Calendar Information Requested from the City
To support a successful implementation and ongoing consulting relationship, USI would request the following information:

Program Information
• Current benefit summaries and plan
documents
• Carrier agreements and service contracts
• Administrative and eligibility procedures
• Open enrollment materials
Financial and Enrollment Data
• Current enrollment reports
• Premium and rate information
• Historical renewal information
• Vendor performance reports
• Billing and reconciliation information
Organizational Information
• Employee census data
• Bargaining unit structure
• Relevant labor agreement provisions
• Human Resources objectives and priorities
• Existing wellness and employee
engagement initiatives
Compliance Information
• Section 125 plan documentation
• ACA-related materials
• Required notices and disclosures
• Existing compliance processes and
procedures
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RELEVANT EXPERIENCE
Please include information describing your experience providing similar services for public agencies.

Provide a minimum of three (3) specific examples of relevant experience. At a minimum, the vendor should provide a list of the most recent projects (i.e., completed within the last five (5) years is preferred, but samples outside of this timeframe will be accepted if relevant) for which the consultant has performed similar services of similar size, scope, and complexity. 21250 Hawthorne Blvd, 380
Torrance, CA 90503
All Services to be performed in
California
100 Summit Lake Drive, Suite
400
Valhalla, NY 10595
Limited Liability Company
USI's proposed service team has extensive experience supporting California municipalities with ancillary benefits consulting, carrier negotiations, vendor management, employee communications, compliance support, and labor-relations assistance. In addition to previously serving as the City of Montebello's employee benefits consultant from 2002 through 2023, our team currently provides ancillary benefits consulting services to numerous California cities and public agencies of similar size and complexity. These engagements include oversight of dental, vision, life, disability, EAP, wellness, and voluntary benefit programs as well as support for renewal negotiations, employee communications, compliance initiatives, and bargaining-related benefit analyses Our Focus on the Unique Needs of Public-Sector Clients
Through our experience with over 1,200 public-sector
clients nationwide, we understand that our clients’ first responsibility is to their constituents and/or their
taxpayers. This primary public responsibility drives all our recommendations and solutions.

Additionally, we understand the importance of industry
segmentation and how critical it is to our clients.

Our Public Entity Industry Segment team takes a
holistic approach to managing your risk and can unite
groups throughout your organization.

Our local account team draws on the resources of this
group to develop industry strategies and solutions to
complex situations. They work to bring “best in front”
results to you.
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Industry Strategies & Solutions for All Facets of the Public-Sector We take the time to understand your operations, culture, and strategic direction; then tailor the right insurance and risk management solutions for your specific needs.

Solutions include:
 Analysis and forecasting
 Environmental liability
 Network security and data privacy
 Claims management and loss control
 Employee safety training
 Administration support
 Development of successful purchasing
pools providing group insurance
programs
 Design and implementation of cost-saving
alternatives (HSAs, HRAs)
 GASB 43 and 45 compliance and funding
solutions
 Population Health Management solutions
 Extensive labor union expertise including
education for unions on health care
benefit trends
 Customized employee and retiree benefit
communications
Proprietary Public Sector Programs
Since 1996, USI Insurance Services has been an innovator in developing and implementing proprietary programs to meet the primary employee benefits coverage needs common to public sector organizations.

The programs have provided our public sector customers with flexibility in benefit choices as well as premium savings and stability over several years. We have extensive experience in developing group purchasing pools on both a fully-insured and self-funded basis.

Public Entity Benefits Pool
Nationally, USI provides brokerage service to over 1,200 public agencies. In California we work with 120+ public agencies which includes municipalities, water districts, special districts, public and higher education. For the past 20 years, the Municipality Benefits Pool has provided low-cost, high-quality, non- medical benefits to over 100 California municipalities and 40,000 employees from recognized specialty carriers. Benefits include Dental, Vision, Life AD&D, LTD, STD, and EAP services. The pool is designed to replicate existing entity employee benefits while reducing premiums through the market leverage of a purchasing cooperative. Instead of acting as individual entities purchasing cost-effective benefits coverage, entities become part of a significantly larger participant group.

Advantages are:
 Individually customized plan design for each entity
 Premium savings up to 20% over traditional markets for specific lines of coverage  Multiple-year rate guarantees for budget stability
Members realize maximum savings by electing the multi-line package of coverages and, at the same time, contributing to the growing strength of the overall purchasing cooperative. Each participating carrier is considered best in its class, with proven financial and management stability (‘A’ or better industry rating).
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Working With Public Entities
USI has long-standing experience serving a wide range of public-sector organizations, including Joint Powers Authorities (JPAs), counties, cities and municipalities, K–12 school districts, community college districts, and special districts throughout California and across the country. Our dedicated Public Sector Practice understands the unique governance requirements, labor environments, compliance obligations, and competitive procurement processes that public agencies must navigate. We support entities operating under board-driven governance, collaboratively managed coalitions, and multi-employer benefit structures that require a high degree of coordination, transparency, and accountability.

Core Service Team Public Sector Experience
The proposed the City service team is a part of our dedicated Public Sector Practice, which is exclusively focused on serving government and public sector agencies in California. This practice currently supports over 120 public sector clients with an annual retention rate of over 95% with many clients partnering with USI for over 15 years.

Our team brings expertise and understanding of public sector regulatory and compliance requirements, and a proven track record of delivering reliable, mission-aligned services. All assigned core service members have direct experience working with public sector clients and are supported by a broader bench of technical resources to ensure continuity, scalability, and responsiveness.

Below is a small snapshot of our public sector clients served by our Public Sector Practice in the City’s region:

Contract Name Services Provided Size/Tenure
Los Angeles Fire and Police Pensions Consulting services for all benefits. 15,000 Retirees/7+ years Los Angeles Community College
District
Consulting Services for ancillary benefits. 7,000 Employees/8+ years City of Torrance Consulting Services for ancillary benefits. 1,500 Employees/25+ years City of Monterey Park Consulting Services for ancillary benefits. 300 Employees/3+ years City of South El Monte Consulting Services for ancillary benefits. 75 Employees/3+ years City of Ventura Consulting services for all benefits. 650 Employees/15+ years City of Thousand Oaks Consulting services for all ancillary benefits. 375 Employees/15+ years City of Simi Valley Consulting services for all ancillary benefits. 650 Employees/17+ years City of Huntington Park Consulting services for all ancillary benefits. 200 Employees/24+ years City of Inglewood Consulting services for all ancillary benefits. 800 Employees/24+ years 15

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Key Project Staff
Core Team Members
Title, and Contact Information
Roles and Qualifications
Daniel Duzyk, GBA, REBC
Vice President,
Lead Consulant
[email protected]
858.477.9227
Daniel’s responsibilities include overseeing the
implementation of new products, negotiating renewals,
and strategic management of the daily service needs for clients. Daniel has worked with public sector agencies for the past 14 years, including cities, counties, school
districts, and community colleges throughout California.

Daniel’s certifications include a GBA Designation through International Foundation of Employee Benefit Plans
(IFEBP) and the Wharton School of the University of
Pennsylvania, and a Registered Employee Benefits
Consultant (REBC) Designation through the National
Association of Benefits and Insurance Professionals
(NABIP).

Tenure with USI: 2+ years
Years in Industry: 14+ years
Christine Kwock, GBA
Senior Acount Executive
[email protected]
424.390.0012
Christine is a Senior Account Executive in Employee
Benefits in the Torrance, California, office. She is a long tenured team member responsible for project
management, carrier performance management,
renewals, and assists with compliance issues for public sector employer groups in California.

Christine’s certifications include Group Benefits
Associate (GBA) designation through the International
Foundation of Employee Benefit Plans through the
Wharton School of the University of Pennsylvania.

Tenure with USI: 8+ years
Years in Industry: 32+ years
Pamela Rodrigues, GBDS
Account Manager
pamela [email protected]
424.390.0030
Pam Rodrigues is an Account Manager in Employee
Benefits in the Torrance, California office. Pam manages the day-to-day administrative and /or member service
issues; implementation and ongoing services of vendors; contract review and system of record management and
updates, open enrollment communications and meeting
coordination.

Pam has her Group Benefits Disability Specialist (GBDS) designation.
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Tenure with USI: 7+ years
Years in Industry: 16+ years

RESOURCE TEAM MEMBERS
Alicia Taylor, ASA,
MAAA
Consulting Actuary
(West Region)
Alicia began her role as an Actuarial Analyst for a recognized company focused on retirement plan consulting after graduating from the University of San Diego magna cum laude and earning a Bachelor of Arts in Mathematics and a Bachelor of Accountancy. In 2020, she moved to a large international broker/consulting firm supporting benefits clients and remained in that role for over three years gaining experience before joining USI.

Alicia has earned an Associate of the Society of Actuaries (ASA) designation and is a Member of the American Academy of Actuaries (MAAA). She holds an Accident and Health Agent Insurance License for the State of California.

Role: As a Consulting Actuary on USI’s Actuarial and Underwriting teams, Alicia utilizes an innovative and results-drive approach in working to ensure that USI clients receive market-leading consulting strategies to address the complex industry challenges we all face. Her extensive technical knowledge and expertise in the field allow Alicia to understand and address the special challenges impacting our clients, while also providing solutions tailored to their unique business needs.

Tenure with USI: 2+ years
Years in Industry: 5+ years
Sylvia Joo Mierzwiak,
Esq.

Employee Benefits
Counsel
(West Region)
Sylvia supports USI professionals in the western United States with benefit compliance activities, including healthcare reform, ERISA, plan administration, and other legal compliance needs of client health and welfare benefit plans. Sylvia has over six years of employee benefits experience and previously worked in an in-house compliance role and as an ERISA litigation attorney. She is licensed to practice law in California and received her J.D. from Boston College Law School and B.A. from Loyola Marymount University.

Joined USI in 2025
Years in industry: 6+
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RESOURCE TEAM MEMBERS
Kara Boley
Population Health
Management Consultant
(West Region)
From 2016-2022 prior to joining USI, Kara was the Employee Wellness Coordinator for the CVWD of Chandler, Arizona, helping to grow the wellness program from self-reported biometric data and Health Assessment Questionnaires into a comprehensive employee-focused benefit. Prior to that, she was an account manager for a third-party wellness vendor, managing a team of seven employees and 35 clients in a variety of industries. Her primary responsibilities included strategic planning, incentive design, overall program development and implementation, and data analysis.

Kara also has experience as a Registered Dietitian working in a healthcare setting. This is where she gained clinical nutrition knowledge and familiarity with the healthcare system. She is also an adjunct nutrition instructor for Central Arizona College, where she helps students expand their knowledge of nutrition and nutrition literacy.

Kara earned her B.S. in Dietetics and M.A. in Family and Consumer Science from Western Michigan University in Kalamazoo, MI. She is a Registered Dietitian Nutritionist with a certificate of training in adult weight management from the Academy of Nutrition and Dietetics.

Role: Kara collaborates with clients to provide clinical intervention strategies to mitigate risk, contain costs, enhance culture, and supports their overall goals.

Tenure with USI: 2+ years
Years in Industry: 16+ years
Benefit Resource Center USI’s BRC (staffed by USI employees in the U.S.) support escalation of employee claim issues, access to care, benefit interpretations and explanations, assistance obtaining case management, transition of care issues, and access to community resources. Benefit Specialists act as the single point of contact for an employee with a claim issue — from beginning to resolution — including any claim appeals for payment. Each issue is assigned to a dedicated benefit specialist, who remains with that issue all the way through resolution. Your employees can connect with the BRC in multiple ways: phone, email, text message, or through your account service team.

Escalation and Service Commitment
USI will provide designated points of contact for all service matters. Routine inquiries will be directed through the assigned account management team, while complex claim, eligibility, billing, compliance, or vendor-performance issues will be escalated to specialized resources as needed. Our team is committed to timely communication and proactive resolution of employee, retiree, and City service issues. Below is a sample list of responsibilities of your USI team:

Responsibility Lead
Executive Oversight Daniel Duzyk
Strategic Planning Daniel Duzyk
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Carrier Negotiations Daniel Duzyk / Christine Kwock
Open Enrollment Pamela Rodrigues
Account Management/Day-to-Day Pamela Rodrigues
Claims Advocacy Pamela Rodrigues / BRC
Compliance Sylvia Mierzwiak
Wellness & EAP Kara Boley
Labor Relations Support Daniel Duzyk/Christine Kwock
Please see Exhibit IV for Team Biographies
Please see Appendix D for References
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SCOPE OF WORK
Please provide a proposed Scope of Services, based on the Scope of Work contained in this RFP; and discuss any ideas for modifying, clarifying, or improving the City’s proposed scope of work. Provide a realistic working schedule with key deliverables, milestones, and tasks.

We believe our full-service culture, team-oriented approach, and service delivery process allow us to stand out from our competitors and is the ideal model for the City’s employee benefits needs. The ability to develop a partnership with the City and become an invaluable resource to your human resources and finance departments is driven by the strength of our comprehensive Annual Scope of Services.

Alignment with the City's Scope of Work
USI has reviewed the City's Scope of Work and designed our service model to fully support each area identified in the RFP. The table below summarizes how USI's services align with the City's objectives.

City Requirement USI Approach
Strategic Benefits
Consulting & Planning
Develop annual and multi-year ancillary benefits strategies, conduct benchmarking studies, evaluate plan design alternatives, identify costcontainment opportunities, and support labor-relations planning.

Analytics, Reporting &
Financial Review
Provide enrollment analysis, utilization review, financial modeling, renewal projections, contribution strategy analysis, and customized reporting to support decision-making.

Procurement, Marketing
& Renewals
Conduct carrier negotiations, market evaluations, RFP development, proposal analysis, vendor selection support, implementation oversight, and contract review.

Benefits Administration
Support
Assist with claims advocacy, eligibility issues, enrollment discrepancies, premium reconciliation, billing concerns, and escalated employee and retiree service matters through dedicated account management resources.

Compliance & Regulatory
Support
Provide ACA, HIPAA, COBRA, Section 125, nondiscrimination testing, legislative updates, required notice guidance, and ongoing compliance training and support.

Employee
Communications &
Education
Develop enrollment guides, benefit summaries, presentations, newsletters, employee meetings, webinars, retirement education programs, and open enrollment communications.
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Wellness & ValueAdded ServicesSupport wellness initiatives, EAP evaluation, financial wellness education, retirement planning resources, and implementation of voluntary benefit offerings.

Customer Service &
Performance
Expectations
Provide dedicated account management, established escalation procedures, periodic service reviews, vendor accountability oversight, and responsive day-to-day support for City staff, employees, and retirees.

The preceding crosswalk summarizes how USI's capabilities align with each component of the City's requested Scope of Work. While those services address the City's strategic objectives at a high level, successful benefits consulting requires a disciplined service model that translates those objectives into measurable activities, deliverables, and ongoing support. The following Annual Scope of Services outlines the specific consulting, brokerage, compliance, communication, employee advocacy, and account management services USI will provide to support the City's ancillary benefits programs throughout the year. Together, these services are designed to function as an extension of the Human Resources Department, providing both long-term strategic guidance and responsive day-to-day support for City staff, employees, and retirees
USI Annual Scope of Services – Included in Annual Consulting Fee Program Service
Management Action Details
Annual Services
Timeline
In cooperation with your Human Resource team, we will develop an annual services timeline that will serve as our roadmap to ensure agreed upon goals are achieved, deadlines are met, and dialogue is ongoing.

Determine Short and
Long-Term Program
Goals and Strategy
Development
▪ Uncover benefits philosophy
▪ Develop plan implementation strategy
▪ Benchmark plans against local and
industry peers and market trends
▪ Review past plan financial performance
▪ Review plan performance and discuss
alternative designs
▪ Advise on National and Local
Marketplace trends
▪ Discuss annual objectives and determine
initiatives for upcoming year
▪ Develop annual budgets
▪ Create strategic plan design
▪ Wellness/Population Health
Management
Plan Review and
Analysis
▪ Benchmarking survey information and
analysis
▪ Enrollment Analysis
▪ Vendor performance reviews
▪ Ancillary utilization reviews
▪
▪ USI Total Solutions: Plan Design and Cost
Savings Modeling Tool
▪ Create contribution strategy exhibits and
analysis
▪ Cost containment audit
Carrier Negotiations
and Renewal
▪ Establish renewal action plan work steps
and associated timeline
▪ Carrier plan specifications up-load
▪ Network analysis
▪ Disability and life renewal management
▪ Vendor performance guarantees
▪ Ancillary carrier negotiations
▪ Review of plan contracts
▪ Review of booklets and web content
▪ Implementation support
▪ Bind coverage of selected insurers
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USI Annual Scope of Services – Included in Annual Consulting Fee Program Service
Management Action Details
Employee
Communications
▪ Build comprehensive communications
strategy based on the City’s budget
▪ Provide open enrollment coordination
and support and attend meetings
▪ Open enrollment and new-hire
orientation support via Brainshark®
presentations
▪ Create Open Enrollment Guide
▪ USI Benefit Resource Center (BRC)
▪ Create customized MyBenefits2GO
mobile app
▪ Create interactive educational tools to
assist employees in plan selection for
medical, dental, and other benefits with
tools like Flimp®, Brainshark, and, if
selected, Jellyvision®
Wellness and
Employee
Engagement
▪ Wellness strategy development
▪ EAP evaluation and support
▪ Mental wellness support
▪ Financial wellness support
▪ Voluntary benefits enhancements
▪ Employee education campaigns
Compliance Matters ▪ Frequent federal and state legislative updates
▪ Employee and employer
communications
▪ Compliance updates
▪ USI Health Care Reform and Risk
Modeling Tool
▪ Evaluation of SPDs, SBCs, and wrap
documents
▪ Signature-ready 5500 forms
▪ HIPAA privacy interpretation
▪ Reporting and disclosure guidance
▪ Eligibility definitions and nondiscrimination requirements ▪ Extra-territorial state monitoring
▪ Host webinars and seminars on
compliance issues
Labor Relations Support ▪ Cost modeling for bargaining
negotiations
▪ Benefit impact analysis
▪ Multi-year forecasting
▪ Negotiation support
▪ Presentation development
Plan Management
Services Including
▪ Monthly experience review/claims
downloads
▪ Quarterly and/or Midyear meetings
▪ Annual renewal planning
▪ Annual Stewardship Meeting
Vendor Relations ▪ Coordinate all communication between client and vendor
▪ Provide guidance during vendor
selection
▪ Management of service representation
▪ Serve as client advocate
▪ Expedite carrier complaint resolution
▪ Host vendor calls as needed
Client Service
Relationship
▪ Ensure prompt and timely responses to
all phone calls and emails
▪ Evaluate team for compatibility and
effectiveness
▪ Quarterly claims review and strategy
▪ Protect client from HIPAA privacy
exposure
▪ Monthly executive summary claims
review
Account Management ▪ Proactive management of additional services
▪ Provide annual and open enrollment
service calendar
▪ Coordination with all diversified service
partners
▪ Quality assurance review
▪ Develop and monitor performance
guarantees
▪ Monthly/Bi-monthly open items log
▪ Claims and coverage assistance
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Customized USI Services
All services below are INCLUDED unless otherwise noted
▪ Custom benefit statements – cost TBD based on
requirements
▪ Jellyvision’s ALEX – interactive tool helping employees make smarter choices about life events – cost TBD
based on requirements
▪ USI client seminars/webinars – HIPAA, FMLA, etc.
▪ Employee training opportunities
▪ USI Benefit Resource Center (BRC)
▪ Customized actuarial IBNR services – cost TBD based
on requirements
▪ Claim audit services – cost TBD based on requirements ▪ Dependent audit – cost TBD based on requirements
▪ Client Cloud by Zywave, USI’s HR consulting partner,
will be provided at no cost
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CONFLICT OF INTEREST STATEMENT
The vendor shall disclose any financial, business, or other relationship with the City that may have an impact upon the selection process. If the vendor does not have any such conflicts, a statement declaring such should be included in their submission.

USI Insurance Services has reviewed the requirements of the City of Montebello's Request for Proposals No. 26-17 for Employee Ancillary Benefits Insurance Broker Services and has evaluated its business relationships, contractual obligations, and potential conflicts related to this engagement.

To the best of our knowledge, USI is not aware of any financial, business, organizational, or personal relationships that would create an actual or potential conflict of interest, or impair our ability to provide objective, independent, and unbiased consulting and brokerage services to the City of Montebello.

USI is committed to acting in the best interests of the City and will provide recommendations based on the City's goals, program needs, and the merits of available solutions. Should any actual or potential conflict arise during the term of the engagement, USI will promptly disclose such information to the City and work cooperatively to address the matter in a manner consistent with applicable laws, ethical standards, and the provisions of the resulting agreement.

Accordingly, USI declares that it is currently unaware of any conflict of interest that would prevent or limit its ability to perform the services requested under this RFP. 24

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COST PROPOSAL
Please see Appendix C for Cost Proposal
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APPENDICES
26

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APPENDIX B: SAMPLE AGREEMENT
USI Exceptions:
• USI’s insurers will not provide direct notice to our clients of 30 days notice upon cancellation of our policies (as we have thousands upon thousands of them). However, USI can agree to directly notify the client (Section 15(i)).
• USI cannot add them as primary/noncontributory under our E&O policy (Section 15(o-p). • USI insurers should have a rating of at least A- by A.M. Best which is the industry standard (Section 15(b)).
• We cannot cede the choice of our self-insured retentions to the City (Section 15(q). They do give us the option of purchasing a bond if they don’t like the SIR levels which would need to be procured by the region.
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21 Appendix “B”
Sample Professional Services Agreement
[See Next Page]
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CITY OF MONTEBELLO
PROFESSIONAL SERVICES AGREEMENT NO. _____
WITH ______________
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into on _____________, 2026 (“Effective Date”), by and between the CITY OF MONTEBELLO, a California municipal corporation (the “CITY”) and (CONSULTANT NAME) (the “CONSULTANT”). The CITY and the CONSULTANT are sometimes referred to herein individual as the “Party,” and jointly as the “Parties.”

RECITALS
WHEREAS, the CITY desires to retain a qualified professional consultant to provide services
WHEREAS, the CONSULTANT submitted a response to the RFP; and WHEREAS, the City evaluated the responses and determined that the Consultant will meet the requirements in a satisfactory manner.

NOW THEREFORE, in consideration of performance by the Parties of the covenants and conditions herein contained, the Parties hereto agree as follows:

SECTION 1. INCORPORATION OF RECITALS AND OTHER CONTRACT

DOCUMENTS
A. The above-referenced Recitals constitute a material part hereof and shall hereby be incorporated by reference. Moreover, this Agreement consists of the following documents, in order of precedence, all of which are incorporated herein and made part of this Agreement, as though fully set forth herein:
a. This Agreement and its Exhibits, including any and all addenda or supplemental agreements.
b. RFP -xxx
c. Proposal referenced and Best Final Offer received by the successful proposer.
d. All other documents, including but not limited to all applicable bonds, insurance certificates, permits, notices, schedules, forms, certifications, and affidavits.

B. These documents shall be collectively referred to herein as the “Contract Documents.” In the event of a conflict among the Contract Documents, the order of precedence list above shall apply.

SECTION 2. SERVICES / COMPENSATION.

A. All terms, conditions, requirements, and provisions of the services in RFP and consultant’s responses, as such is set forth fully in Exhibit “A” hereto, are hereby incorporated fully herein by this reference and shall be binding on the Parties.

To the extent of a conflict between the terms of this Agreement and that set forth in any exhibits or attachments hereto, the terms of this Agreement shall govern.

B. The CONSULTANT shall provide to the CITY all labor, equipment, materials and incidental necessary to provide services, as such is set forth fully in Exhibit “A” hereto and incorporated fully herein by this reference (hereinafter 29

“Professional Services”).

C. The CONSULTANT shall be compensated for performance of the Professional Services as set forth in the Schedule of Compensation attached hereto as Exhibit “B” and incorporated fully herein by this reference (“Compensation”). The CONSULTANT shall provide an itemized billing statement to the CITY each month for Professional Services performed. The CONSULTANT shall no incur fees or costs which exceed the Compensation without the prior written consent of the CITY.

SECTION 3. TERM.
a. This Agreement shall commence upon issuance of a written “Notice to Proceed” (as further defined below) by the CITY and shall expire on June 30, 2027, from the Effective Date, unless terminated earlier as hereinafter provided.

This Agreement may be extended through June 30, 2029, with mutual agreement from both parties.
b. Notice to Proceed. Any work or service contemplated under this Agreement shall not commence until the CITY has issued a written Notice to Proceed issued by CITY’s applicable, department head.

SECTION 4. PERFORMANCE.
a. The CONSULTANT shall at all times, faithfully, competently, and to the best of its ability, experience, and talent, perform all tasks described herein. b. The CONSULTANT shall employ, at a minimum, generally accepted standards and practices utilized by companies engaged in providing similar services, as are required of Consultant hereunder, in meeting its obligations under this Agreement.
c. The CONSULTANT shall be knowledgeable of and subject to all CITY ordinances, rules and regulations, standard operating procedures, and the supervisory chain of command.
d. The CONSULTANT shall have the right to retain, subject to the CITY's approval, additional individuals, consultants or subconsultants to assist in the completion of services as herein defined. Compensation for additional individuals, consultants or subconsultants shall be the sole and exclusive responsibility of the CONSULTANT.
e. The CONSULTANT shall retain all original reports, field and office notes, correspondence, calculations, maps, and other documents specifically related to the services provided by the CONSULTANT pursuant to this Agreement, other than documents which are exempt from disclosure pursuant to the attorneyclient privilege or any other law. Said documents shall be made available for inspection by the CITY upon request.

SECTION 5. WORK PRODUCT.
a. The CONSULTANT hereby agrees that all work product produced pursuant to this Agreement and provided to the CITY during and upon completion of this Agreement, shall be the property of the CITY, and ownership of said work product shall be retained by the CITY.
30

b. All data, documents, discussion, or other information developed or received by the CONSULTANT or provided for performance of this Agreement are deemed confidential and shall not be disclosed by the CONSULTANT without prior written consent by the CITY. The CITY shall grant such consent if disclosure is legally required. All such written products shall be returned to the CITY upon the termination or expiration of this Agreement. The CONSULTANT agrees that the covenants contained in this Section shall survive the expiration or termination of this Agreement.

SECTION 6. EXTRA SERVICES.

No extra services over and above the Compensation shall be rendered by the CONSULTANT under this Agreement unless such extra services first shall have been duly authorized in writing by the CITY’s City Manager (the “City Manager”).

SECTION 7. CITY SUPERVISION.

The City Manager shall have the right of general supervision of all work performed by the CONSULTANT and shall be the CITY’s agent with respect to obtaining the CONSULTANT’s compliance hereunder. No payment for services rendered under this Agreement shall be made without the prior approval of this agreement by the City Manager.

SECTION 8. TERMINATION.

In the event that either Party hereto fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, the non-defaulting party shall give the defaulting party written notice of the default, the nature of the default, and of the steps necessary to cure the default.
a. Termination for Cause. In the event that any of the provisions of the Agreement are violated by either party, the non-defaulting Party may terminate the Agreement by serving written notice upon the other Party, listing the violation(s) and its intent to terminate such Agreement unless within ten (10) days after the serving of such notice, such violation shall cease or be rectified, the contract shall upon the expiration of an additional thirty (30) days cease and terminate. Violations by the CONSULTANT which cannot be corrected within ten (10) days, said contract shall at the option of the CITY cease and terminate upon the giving of like notice. In the event of any such termination for default by the CONSULTANT, the CITY may take over the work and prosecute the same to completion by contract or otherwise for the account and at the expense of the CONSULTANT. The CONSULTANT and his sureties shall be liable to the CITY for any excess cost occasioned in the event of any such termination. This change shall not be construed to prevent the termination, for other causes authorized by law or other provisions of this contract. In the event of a termination for cause, the CONSULTANT shall only be entitled to the Compensation for those Professional Services satisfactory performed on or before the effective date of termination.
b. Termination for Convenience. The CITY shall have the option, at its sole discretion and without cause, to terminate this Agreement in whole, or in part, by giving thirty (30) business days’ written notice to the CONSULTANT. Upon the termination of this Agreement as provided herein, the CITY shall provide to the CONSULTANT the part of Compensation which would otherwise be payable to the CONSULTANT for services the CONSULTANT had completed as of the date of termination, less the amount of all previous payment with respect to the Compensation. Further, upon such a termination for convenience by the CITY, the 31

Parties agree that the CONSULTANT shall be reimbursed for any “non-refundable” costs that the CONSULTANT has incurred for its services under this Agreement, provided that: (1) such “non- refundable” costs were incurred by the CONSULTANT prior to the date of termination, and (2) that the CONSULTANT provides the CITY with adequate proof that the CONSULTANT incurred the costs, and is unable to be seek a refund for such costs. Such “non-refundable” costs may include, but are not limited to, travel reservations incurred by the CONSULTANT for its performance of services under this Agreement. The CONSULTANT agrees to cease all work under this Agreement on or before the effective date of any notice of termination.

SECTION 9. EMPLOYMENT OF CITY EMPLOYEES.

No regular employee of the CITY shall be employed by the CONSULTANT during the term of this Agreement.

SECTION 10. NON-LIABILITY OF CITY OFFICIALS AND EMPLOYEES.

No official or employee of the CITY shall be personally liable to the CONSULTANT in the event of any default or breach by the CITY, or for any amount which may become due to the CONSULTANT.

SECTION 11. INDEPENDENT CONSULTANT.
a. The CONSULTANT is and shall, at all times, remain as to the CITY a wholly independent consultant. Neither the CITY nor any of its elected officials, officers, employees, or agents shall have control over the conduct of the CONSULTANT except as expressly set forth in this Agreement. The CONSULTANT shall not at any time or in any manner represent that he or she is in any manner an elected official, officer, employee, or agent of the CITY. No employee benefits shall be available to the CONSULTANT in connection with the performance of this Agreement. Except as provided in this Agreement, the CITY shall not pay salary, wages, or other compensation to the CONSULTANT for performance hereunder for the CITY, the CITY shall not be liable for compensation to the CONSULTANT, the CONSULTANT’s employees or the CONSULTANT’s subconsultants for injury or sickness arising out of performing services hereunder.
b. The parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship or any other relationship except as set forth in this Agreement. c. The CITY shall not deduct from the Compensation paid to the CONSULTANT any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to the CONSULTANT. The CITY shall have no responsibility to provide the CONSULTANT, its employees or subconsultants with workers’ compensation insurance or any other insurance.

SECTION 12. CalPERS ANNUITANTS AND ELIGIBILITY INDEMNITY. a. If the CONSULTANT is a California Public Employees’ Retirement System (“CalPERS”) annuitant, the CONSULTANT must provide the City with written notification of such fact a minimum of 14 calendar days prior to commencement of services under this Agreement. Failure to provide such notification may result in termination of the Agreement, and any penalties or other costs relating thereto shall be borne by the CONSULTANT. If this Agreement remains in place, the 32

CONSULTANT shall execute any amendment(s) to this Agreement requested by the City in order to comply with all laws and regulations applicable to CalPERS annuitants.
b. In the event that the CONSULTANT or any employee, agent, or subconsultant of the CONSULTANT providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the CITY, the CONSULTANT shall indemnify, defend, and hold harmless the CITY for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of the CONSULTANT or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the CITY.
c. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, the CONSULTANT and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by the CITY, including but not limited to eligibility to enroll in PERS as an employee of the CITY and entitlement to any contribution to be paid by the CITY for employer contribution and/or employee contributions for PERS benefits.

SECTION 13. LEGAL RESPONSIBILITIES.

The CONSULTANT shall at all times observe and comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local governments including, but not limited to the Montebello Municipal Code. The CITY, and its appointed or elected officers, employees, or agents, shall not be liable at law or in equity occasioned by failure of the CONSULTANT to comply with this section.

SECTION 14. INDEMNIFICATION.

The CONSULTANT agrees to, and shall defend, indemnify, protect and hold harmless, the CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers from and against any and all claims, demands, lawsuits, defense costs, civil, penalties, expenses, causes of action, and judgments at law or in equity, or liability of any kind or nature which the CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers may sustain or incur or which may be imposed upon them for injuries or deaths of persons, or damage to property arising out of the CONSULTANT’s negligent or wrongful act, or omission under the terms of this Agreement, except only liability arising out of the sole negligence of the CITY.

SECTION 15. INSURANCE COVERAGE.
a. During the term of this Agreement, the CONTRACTOR shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with CONTRACTOR’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:

Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis for bodily injury and property damage, including products-completed operations, personal injury, and 33

advertising injury, with limits no less than $2,000,000 per occurrence, $4,000,000 aggregate.

Automobile Liability Insurance: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if CONTRACTOR has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

Worker's Compensation insurance as required by the laws of the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

Professional Liability insurance appropriate to the CONTRACTORS’S profession, with limit no less than $2,000,000 per occurrence or claim, $4,000,000 aggregate.
b. If the CONTRACTOR maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR.
c. The CONTACTOR shall require each of its subcontractors, if any, to maintain insurance coverage that meets all of the requirements of this Agreement. d. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a current rating of at least A:VII in the latest edition of Best's Insurance Guide.
e. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (ten [10] days for nonpayment) has been given to the CITY. The CONTRACTOR agrees that if it does not keep the aforesaid insurance in full force and effect the CITY may either (i) immediately terminate this Agreement for Cause; or (ii) take out the necessary insurance and pay, at the CONTRACTOR’s expense, the premium thereon. .
f. If the CONSULTANT maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT.
g. The CONTACTOR shall require each of its subconsultants, if any, to maintain insurance coverage that meets all of the requirements of this Agreement. h. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a current rating of at least A:VII in the latest edition of Best's Insurance Guide.
i. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (ten [10] days for nonpayment) has been given to the CITY. The CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect the CITY may either (i) immediately terminate this Agreement for Cause; or (ii) take out the necessary insurance and pay, at the CONSULTANT’s expense, the premium thereon. j. Evidence of Insurance prior to commencement. The Contractor shall provide to the CITY Certificate(s) of Insurance evidencing such coverage together 34

with copies of the required policy endorsements no later than five (5) business days prior to commencement of service and at least fifteen (15) business days prior to the expiration of any policy. Unreasonable failure to provide such evidence may be cause for termination of the Agreement as provided herein or delay the services’ commencement date. The evidence of insurance shall be U.S. mail or email to:

City of Montebello
Attn: Principal Risk Manager
1600 West Beverly Boulevard
Montebello, CA 90640
Email: [email protected]
k. Coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits, non-renewed, or materially changed for any reason, without thirty (30) days prior written notice thereof given by the insurer to the CITY by U.S. mail, or by personal delivery, except for nonpayment of premiums, in which case ten (10) days prior notice shall be provided.
l. Evidence of Insurance during the entire term of the Agreement. At all times during the term of this Agreement, the CONSULTANT shall maintain on file with the CITY’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming the CITY as an additional insured. The CONSULTANT shall, prior to commencement of work under this Agreement, file with the CITY’s Risk Manager such certificate(s). m. The CONSULTANT shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages. n. The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming the CITY, its officers, employees, agents and volunteers as additional insured’s. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to the CITY. The CONSULTANT agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.
o. The insurance provided by the CONSULTANT shall be primary to any coverage available to the CITY. Any insurance or self-insurance maintained by the CITY, its officers, employees, agents, or volunteers, shall be in excess of CONSULTANT’s insurance and shall not contribute with it. p. All insurance coverage provided pursuant to this Agreement shall not prohibit the CONSULTANT, and CONSULTANT’s employees, agents or subconsultants, from waiving the right of subrogation prior to a loss. The CONSULTANT hereby waives all rights of subrogation against the CITY.
q. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, the CONSULTANT shall either reduce or eliminate the deductibles or self-insured retentions with respect to the CITY, or the CONSULTANT shall procure a bond guaranteeing payment of losses and expenses. 35

r. Procurement of insurance by the CONSULTANT shall not be construed as a limitation of the CONSULTANT'S liability or as full performance of CONSULTANT’s duties to indemnify, hold harmless and defend under the indemnity covenants of this Agreement.

SECTION 16. SUBCONTRACT, ASSIGNMENT OR DELEGATION.

The CONSULTANT shall not subcontract, delegate, or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of the CITY.

Any proposed subcontract, delegation, or assignment shall provide a description of the services to be covered, identification of the proposed sub-consultant, delegee, or assignee, and an explanation of why and how the same was selected, including the degree of competition involved.

Any subcontract, delegation or assignment shall be made in the name of the CONSULTANT and shall not bind or purport to bind the CITY and shall not release the CONSULTANT from any obligations under this Agreement including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegees or sub-consultants. No such subcontract, delegation or assignment shall result in any increase in the amount of total compensation payable to the CONSULTANT under the Agreement.

SECTION 17. NO WAIVER.

Waiver by any party hereto of any term, condition or covenant of this Agreement shall not constitute the waiver of any other term, condition, or covenant hereof.

SECTION 18. DISPUTE RESOLUTION; GOVERNING LAW.

Disputes regarding the interpretation or application of any provision(s) of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the Parties. If any action at law or in equity is brought to enforce this Agreement or because of alleged dispute, breach, default or misrepresentation in connection with the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney’s fees, expert fees, costs and necessary disbursements incurred in that action or proceeding, in addition to such other relief as may be sought and awarded. The venue for any litigation shall be County of Los Angeles, California. The Parties agree that the covenants contained in this Section shall survive the expiration or termination of this Agreement.

SECTION 19. ATTORNEY’S FEES AND COSTS.

If litigation is reasonably required to enforce or interpret the provisions of this Agreement, the prevailing party in such litigation shall be entitled to an award of reasonable attorney's fees and costs in addition to any other relief to which it may be entitled.

SECTION 20. WARRANTIES.

Each of the parties represents and warrants to one another as follows:
a. It has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement; b. In executing this Agreement, it has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any 36

other party, or any other person or entity, not expressly set forth herein, nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever; and c. It is agreed that each party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either party has the full right and authority to fully commit and bind such party to the provisions of this Agreement.

SECTION 21. MISCELLANEOUS.
a. The descriptive paragraph headings of this Agreement are included for purposes of convenience only and shall not control or affect the construction of interpretation of any of its provisions.
b. Whenever the context hereof shall so require, the singular shall include the plural, the male gender shall include the female gender, and the neuter and vice versa. c. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained herein.
d. The representations and warranties made by the parties to this Agreement shall survive the consummation of the transaction herein described. e. This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the party whose signature appears in the facsimile and shall be binding upon such party in the same manner as though an originally signed copy had been delivered. f. Each of the parties acknowledges that it has been represented by independent counsel of its own choosing, or if it has not been so represented, it has been admonished to obtain independent counsel and has freely and voluntarily waived and relinquished the right to counsel. Each party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such party’s failure to perform under this Agreement or any agreement referred to in this Agreement.

SECTION 22. NOTICE.

All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered via e-mail (an “Electronic Notice” as further defined below), personally or on the second (2nd) business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals hereunder shall be given to the following addresses or such other addresses as the Parties may designate by written notice:
37

If to CITY: City of Montebello
Attn: Raul Alvarez, City Manager
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200
Email: [email protected]
With a copy to: City of Montebello – Department of Finance Attn: Michael Solorza
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887 – 1200
Email: [email protected]
If to Consultant: CONSULTANT NAME

RECIPIENT NAME

ADDRESS

PHONE NUMBER
Email:

An electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this section if sent to the electronic mail address specified above.

Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form.

SECTION 23. NON-DISCRIMINATION AND EQUAL OPPORTUNITY
EMPLOYER.

In the performance of this Agreement, the CONSULTANT shall not discriminate against any employee, sub-consultant, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, mental condition or sexual orientation. The CONSULTANT will take affirmative action to ensure that sub-consultant and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

SECTION 24. CONFLICT OF INTEREST.

The CONSULTANT covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by the CONSULTANT under this Agreement, or which would conflict in any manner with the performance of its services hereunder. The CONSULTANT further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, the CONSULTANT shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this Agreement.

The CONSULTANT covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to the CITY as a result of the performance of this Agreement, or the services that may be procured by the CITY as a result of the recommendations made by the CONSULTANT. The CONSULTANT's covenant under this section shall survive the termination of this Agreement.
38

SECTION 25. ENTIRE AGREEMENT.

This Agreement contains the entire understanding between the CITY and the CONSULTANT. Any prior agreements, promises, negotiations or representations not expressly set forth herein are of no force or effect. Subsequent modifications to this Agreement shall be effective only if in writing and signed by each party. If any term, condition, or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall be valid and binding.

SECTION 26. EXTENSION TO OTHER PUBLIC AGENCIES
Unless otherwise specified in writing, the CONSULTANT agrees that the prices, terms, and conditions identified in the Proposal (Exhibit “A”) and Agreement may be extended to other governmental agencies at the mutual agreement of both the public agency and awarded CONSULTANT. All requirements of the specifications, purchase orders, invoices, and payments with other agencies shall be directly with the CONSULTANT. CONSULTANT acknowledges and agrees to the extension of these contract terms to other governmental agencies conditioned upon the agreement of the CONSULTANT with the governmental agency. This provision in no way guaranteed that the CONSULTANT will agree to enter into a contract with a governmental agency pursuant to this Section.
[SIGNATURE PAGE TO FOLLOW]
39

IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Agreement as of the date first written above. (“CITY”) (“CONSULTANT”)

CITY OF MONTEBELLO (CONSULTANT NAME)
Raul Alvarez, City Manager (CONSULTANT SIGNATORY, TITLE) ATTEST:

Christopher Jimenez, City Clerk
APPROVED AS TO FORM:

Arnold M. Alvarez-Glasman, City Attorney
40

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APPENDIX C: COST PROPOSAL
41

22 Appendix “C”
Cost Proposal
In accordance with the Request for Proposal issued by the City of Montebello (hereinafter referred to as Broker/Consultant), the undersigned proposing company hereby agrees to furnish all necessary labor, materials and incidentals required for the above stated contract as set forth in the Scope of Work and any addenda thereto, and to perform all work in the manner and time prescribed therein.

DESCRIPTION FIXED ANNUAL RATE
A CONTRACT YEAR 1 $
B CONTRACT YEAR 2 $
C CONTRACT YEAR 3 $
Total for initial 3 year contract period $

OPTIONAL RENEWAL PERIODS
D CONTRACT YEAR 4 $
E CONTRACT YEAR 5 $
60,000
60,000
60,000
180,000
62,500
65,000
42

23 Appendix “C”
Cost Proposal
The above amounts include salary cost, fringe benefits, overhead, operating margin and profit, and all direct and indirect expenses.

Please include above any other potential additional services that may be required and associated costs. (Attach your hourly and expense schedule for any additional work outside of scope of services.)

COMPANY NAME

ADDRESS

TELEPHONE & FAX

EMAIL ADDRESS

AUTHORIZEDSIGNATURE

SIGNATURE'S NAME AND TITLE

DATE SIGNED
USI Insurance Services LLC
21250 Hawthorne Blvd. Suite 380, Torrance, CA 90503
858.477.9227
[email protected]
Daniel Duzyk
07/13/2026
43

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APPENDIX D: REFERENCES
44

24 Appendix “D”
Reference Sheet
RFP 26 – 17 (Employee Ancillary Benefits Insurance Broker Services) List at Least Three (3) Professional References:
1 Project City/Agency/Other:

Person of Contact:

Phone Number:

E-mail Address:

Address:

City, State, Zip Code:

Descriptionof Contract
(Please include contract
value, award date, term of
contract, and description of
work):

Contract Value: $
Award Date:

Term of Contract:

Description ofWork:
2 Project City/Agency/Other:

Person of Contact:

Phone Number:

E-mail Address:

Address:

City, State, Zip Code:

Descriptionof Contract
(Please include contract
Contract Value: $
Award Date:

Term of Contract:

City of Torrance
Hedieh Kahjavi, HR Director
310.618.2959
[email protected]
3031 Torrance Blvd. Torrance
Torrance, CA 90503
Confidential
2002
Current
Consulting on all ancillary benefits.

City of Palm Springs
Stephanie George, HR Director
760.323.8217
[email protected]
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Confidential
2002
Current
45

25 value, award date, term of
contract, and description of
work):

Description ofWork:
3 Project City/Agency/Other:

Person of Contact:

Phone Number:

E-mail Address:

Address:

City, State, Zip Code:

Descriptionof Contract
(Please include contract
value, award date, term of
contract, and description of
work):

Contract Value: $
Award Date:

Term of Contract:

Description ofWork:

Consulting on all ancillary benefits.

City of Santa Barbara
Charlie Lam, HR Analyst III
805.564.5442
[email protected]
735 Anacapa Street
Santa Barbara, CA 93101
Confidential
2009
Current
Consulting for all ancillary benefits
46

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EXHIBITS
47

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EXHIBIT I: SAMPLE BBS REPORT
48

CONFIDENTIAL AND PROPRIETARY: This presentation and the information contained herein is confidential and proprietary information of USI Insurance Services, LLC ("USI"). Recipient agrees not to copy, reproduce or distribute this document, in whole or in part, without the prior written consent of USI. Estimates are illustrative given data limitation, may not be cumulative and are subject to change based on carrier underwriting. © 2024 USI Insurance Services. All rights reserved.
www.usi.com
2024 Plan
Performance
Assessment
Partnership Solutions for
Executives and HR Teams
San Joaquin Valley Insurance
Authority
Friday, February 28, 2025
SAMPLE
49

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EMPLOYEE
VIEW
COST &

STRATEGY

ADDITIONAL

BENEFITS
The Plan from the Employee Perspective:
▪ Plan Design Value
▪ Plan Affordability
▪ Total Employee Cost
▪ Effective Communications
Contents
Medical Cost Efficiency and Plan Strategy:
▪ Plan Offerings
▪ Funding Status
▪ Population Health Management
▪ Prescription Drugs
Within this report you will find a summary assessment
of your medical and ancillary plans. We found it most
beneficial to group our benchmarking observations
into three sections:

In all, our study includes data from over 10,000 employers, from dozens of industries, and nearly every state in the country.

Additional Benefits:
▪ Dental
▪ Paid Time Off
▪ Voluntary or Worksite Benefits
50

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Introduction: Your Benchmark Groups
We benchmarked your plans against groupings of other participants that we thought you would be most interested in seeing:
95 P a r t i c i p a n t s
County Government
Industry
767
California
States
88 5000+ Employees
Group Size
P a r t i c i p a n t s P a r t i c i p a n t s
51

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Why is Benchmarking Important?
Unemployment Rate 1

3.8%
Average cost of hiring an
employee and takes 42 days
$4,7003
$630B
Annual voluntary turnover costs
for U.S. Employers 2
90-200%
Percent of an employee’s
annual salary that may be
associated with total cost of
turnover4
In the current economic climate, as
unemployment remains low,
employers are challenged with
aligning workforce demands with
rising costs.
▪ Employers often struggle to understand how their
benefit plans stack up to the competition.
▪ Offering appealing benefits to retain current
employees may be more cost effective than
recruiting new staff.

To drive informed decision-making, USI
actuaries benchmark plan design with the
related actuarial value of out-of-pocket costs
and employee contributions.
1 Bureau of Labor Statistics, March 2024
2 Work Institute’s 2020 Retention Report
3 SHRM. “The Real Costs of Recruitment.”;
4 SHRM Foundation’s Effective Practice Guidelines Series: Retaining Talent, A Guide to Analyzing and Managing Employee Turnover, 2008 52

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Employee Benefits Programs
Payroll
Contributions
Plan Design
Comparisons Customization Value Added
Services to
Employees
Employee
Satisfaction and
Retention
Concerns
For Employee
Benefits
TOP 5
Employers are
challenged with finding
the right balance for
benefits programs.

Cost of Benefits
Is the company
spending too much
on benefits?
1 Cost of Turnover
The company needs to
spend more on benefits to
attract and retain talent
2 USI benchmarking offers targeted, clean data to drive decisions around benefit costs and programs.
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Groups exploring a Patient Assistance Program
(PAP) to assist with coverage of Specialty Rx
Has not
explored
35% 45%
8%
Your Group County
Government
5000+ Employees California
Trending Topics
How are companies treating coverage of GLP-1s (Wegovy, Ozempic, etc.) Providing coverage if prescribed for weight loss
Considering adding coverage for weight-loss in the future County
Government
5000+ Employees California
16%
5%
20%
13%
21%
4%
Several trends in
pharmacy spending
will continue to impact
employer costs
Pharmacy cost increases are
driven by utilization, price, and
emerging therapies.

See what other companies are
doing to help mitigate higher
pharmacy spend and limit
their exposure.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. (Your organization’s responses are highlighted blue)
Gene Therapy Coverage
County
Government
5000+ Employees California
21%
72%
7%
25%
71%
4%
16%
83%
1%
(Your organization’s responses are highlighted blue)
Considering excluding gene therapies from coverage
Will provide coverage for all gene therapies
Have amended plan documents to exclude some or all
gene therapies
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Viewing Your Plan from the Employee’s Perspective
Plan Design
Value
Payroll
Contributions
Total
Employee
Cost
Effective
Communication
Good communication adds to the employees’ perception of value.

Employees look at employee benefits as an important piece of their total compensation.

Savvy employees who consider medical benefits as part of their employment decision are looking for:
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Your Plans Your Plans when Better than Peer Group Average Plan Design Value – Plan Richness
Employees want access to at
least one medical plan that
covers as much or more than
what they can find at an
average employer in their
industry or geography.

Plan design value calculations reflect
the average amount of total healthcare
spend covered by the plan.

It includes the benefit of employerfunded accounts, such as HSAs or HRAs which can offset out-of-pocket spend.

Note: Plan design values may not be an exact match
to estimates from USI’s Actuarial Value Calculator
86%
84%
86%
85%
75%
97%
75%
94%
95%
98%
California
5000+ Employees
County Government
Peer Group Average
Kaiser HDHP
Kaiser HMO
Anthem HDPPO
Anthem Pismo Beach EPO
Anthem Sierra EPO
Anthem Yosemite EPO
GOAL: You have met or exceeded this goal;
you have 4 plans that are higher than
the benchmark.

Offer at least one plan that’s RESULT:
richer than the Peer Group
Average.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 56

| 8
Plan Design Value, Details by Plan Type
Employees want to have access to at least one medical plan that covers as much or more than what they can find at an average employer in their industry or geography.

Deductible
Out-of-Pocket
Maximum Coinsurance*

HRA/HSA
Funding*
Average % of Cost
Paid by the Plan
Traditional National Network Plans
Anthem HDPPO $3300 $3300 0% $0 75%
County Government $1000 $3625 20% ID 85%
5000+ Employees $750 $3500 20% $500 84%
California $500 $5000 20% $1000 83%
Regional or Performance Network Plans
Anthem Yosemite EPO $0 $1000 0% $0 98%
Anthem Sierra EPO $0 $3000 0% $0 95%
Anthem Pismo Beach EPO $0 $4000 0% $0 94%
Kaiser HMO $0 $1000 0% $0 97%
Kaiser HDHP $3300 $3300 0% $0 75%
County Government $0 $1500 ID ID 98%
5000+ Employees $0 $2650 20% ID 93%
California $0 $4000 30% $1350 92%
Qualified High Deductible Plans
County Government $3000 $4000 20% $1000 78%
5000+ Employees $2500 $5000 20% $500 75%
California $2800 $5500 20% $1000 74%
* Amounts, when offered. HRA Funding may pay first (front-end) or after deductible (back-end).

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 57

| 9
We looked at the average value of employer-funded accounts by plan type. Typically, accounts for Qualified High Deductible Health Plans are HSAs, while accounts for Regional, Performance, and National network plans are HRAs.

Annual Employer Funding Amounts (% offering)*
Individual Coverage
Annual Employer Funding Amounts*
Family Coverage
Employer-Funded Account Values
*Avg amount, when offered (% of companies offering employer funding) HRA Funding may pay first (front-end) or after deductible (back-end).

California
5000+ Employees
County Government
California, ID
5000+ Employees, ID
County Government
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
California
5000+ Employees
County Government, ID
Anthem HDPPO, $0
$1600
$1000
$1500
$2700
$2000
$1500
Qualified High Deductible Health Plans
Regional or Performance Network Plans
Traditional National Network Plans
California
5000+ Employees
County Government
California
5000+ Employees, ID (1%)
County Government, ID (8%)
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
California
5000+ Employees
County Government, ID (5%)
Anthem HDPPO, $0
$1000 (38%)
$500 (61%)
$1000 (52%)
$1350 (2%)
$1000 (4%)
$500 (7%)
Qualified High Deductible Health Plans (usually HSAs)
Regional or Performance Network Plans (HRAs)
Traditional National Network Plans (HRAs)
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 58

| 10
One or more plans are competitive for both singles
and families.

Employee Payroll Contributions
GOAL:

Payroll contributions are a primary driver of employee satisfaction with the benefit plan.

USI identifies opportunities to improve competitiveness or reduce expense.

RESULT:

Monthly Contributions – Individual Coverage Monthly Contributions – Family Coverage Your Plans Your Plans when Better than Peer Group Average $132
$142
$57
$125
California
5000+ Employees
County Government
Peer Group Average
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem HDPPO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
$715
$581
$411
$672
California
5000+ Employees
County Government
Peer Group Average
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem HDPPO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
Offer at least one plan that is priced lower than
the Peer Group Average for singles, families.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 59

| 11
Payroll Contributions by Plan Type
Payroll contributions are the most visible component of a medical plan. They heavily influence the employees’ perception of the benefit and can drive enrollment decisions.

Monthly Contribution – Individual Coverage Monthly Contribution – Family Coverage Your Plans
California
5000+ Employees
County Government
California
5000+ Employees
County Government
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
California
5000+ Employees
County Government
Anthem HDPPO, $0
$540
$446
$295
$730
$572
$702
$799
$651
$441
Qualified High Deductible Health Plans
Regional or Performance Network Plans
Traditional National Network Plans
California
5000+ Employees
County Government, $44
California
5000+ Employees
County Government, $28
Kaiser HDHP, $0
Kaiser HMO, $0
Anthem Pismo Beach EPO, $0
Anthem Sierra EPO, $0
Anthem Yosemite EPO, $0
California
5000+ Employees
County Government
Anthem HDPPO, $0
$96
$112
$124
$166
$158
$159
$77
Qualified High Deductible Health Plans
Regional or Performance Network Plans
Traditional National Network Plans
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 60

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Quality Communications
Effective
communication
increases the
perceived value
of your plans by
employees.

To ensure your
employees are getting
the most out of their
benefits, it helps to have
regular contact and
communications.

A formal contribution
strategy can help
determine the optimal
frequency for
communicating with
employees.
33%
35%
18%
32%
52%
62%
35%
13%
20%
County
Government
5000+ Employees
California
Does your company have a formal EB Communications Strategy? How often employees receive benefits related communications. 18%
4%
33%
4%
42%
24%
8%
32%
9%
27%
41%
8%
11%
1%
39%
Annually, only at Open Enrollment
Quarterly
Monthly
Weekly
As needed
County Government 5000+ Employees California
Yes, prepared
internally by HR
Yes, with external
support
No
Your Responses
GOAL: There may be an opportunity for
enhanced communication strategy.

A formal communication strategy with RESULT:
regular touchpoints.
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Quality Communications
GOAL: Your communications plan meets or
exceeds the goal.

RESULT:

Effective
communication
increases the
perceived value of
your plans by
employees.

To have effective
communication, you need
to reach your employees
with multiple touchpoints
and across multiple media
types.
(Your organization’s investments are represented by light blue highlight) At least six touchpoints across a variety of
demographically appropriate media.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 28%
33%
5%
23%
47%
58%
42%
46%
42%
7%
68%
5%
26%
32%
37%
65%
32%
12%
88%
91%
44%
60%
73%
27%
24%
49%
69%
60%
76%
45%
16%
80%
19%
33%
36%
45%
52%
19%
16%
76%
69%
32%
36%
35%
8%
26%
43%
47%
60%
73%
47%
16%
63%
5%
45%
29%
31%
60%
30%
18%
88%
93%
23%
Paper & Other Visual Aids
Home mailers about benefits
Benefit or wellness information on posters/internal TV
Third Party Tools
Utilize a third-party health or claims advocacy service Utilize interactive decision support services
County Government 5000+ Employees California
Electronic
Mobile applications
Texting campaign
Benefits website/microsite
Case studies and illustrative examples
FSA/HSA tax savings examples
Recorded open enrollment meetings
Webinars, teleconferences
Newsletters, partially dedicated to health topics
Other electronic content, educational on health
Live Presentations
Benefits Fair
Open Enrollment meetings
Open door HR policy
HSA information sessions
Enrollment meetings for voluntary coverage
Retirement/401k sessions
Financial wellness presentations
Wellness classes
62

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You have met or exceeded this goal; you have 4 plans that are higher than the benchmark.

One or more plans are competitive for both singles and families.

One or more plans meet or exceed the goal for both singles and families.

There may be opportunity for enhanced communication
strategies.

After assessing how
your plan is viewed
from the perspective
of the employee,
here’s what we came
up with:

Executive Summary
Plan Design Value
Payroll Contributions
Section 1
Total Employee Cost
Quality Communications
.

GOAL: Offer at least one plan that’s richer than the Peer Group Average.

GOAL:

GOAL:

GOAL: A formal communication strategy and frequent touchpoints.

At least six touchpoints across a variety of demographically appropriate media.

RESULT:

RESULT:

RESULT:

RESULT:

Offer at least one plan that is lower priced than the Peer Group Average for singles, families.

Offer at least one plan whose Total Employee Cost is lower than the Peer Group Average for singles and families.
63

| 15
Medical Cost Efficiency and Plan Strategy
Plan Offerings Funding
Method
Population
Health
Prescription
Drugs
Plan sponsors with fiscal priorities in mind take an interest in certain benefit opportunities that provide options to save money while not sacrificing competitiveness or creating negative employee impact Employers are considering how to balance the attraction and retention of their employees with the cost of their benefits.

We benchmark employers by looking at:
64

| 16
Opportunity to reduce plan value
and still be market-leading.

Over-Insurance
Clients frequently tell us they want to offer a market-leading plan without being an outlier. Only 16% of all plans offered by our participants exceeded 90% coverage, including the value of HSAs. That is the “outlier” level.

Percentage of All Plans Offered, by Level of Plan Coverage GOAL: RESULT:

Good Plans
Market-Leading
Outliers
Maximum Plan Savings Opportunity:

Reduce to 60.0%
Minimum Plan Savings
Opportunity: Reduce to 89.9%
Have no plans which pay more than 90% of
expected cost.

6.9%

13.1%

16.9%

20.8%

15.7%

10.3%

9.1%

7.3%
60% - 64.9% 65% - 69.9% 70% - 74.9% 75% - 79.9% 80% - 84.9% 85% - 89.9% 90% - 94.9% 95% - 100% Anthem Yosemite EPO (Regional, Traditional)
Kaiser HMO (Regional, Traditional)
Anthem HDPPO (National, Traditional)
Anthem Pismo Beach EPO (Regional, Traditional)
Anthem Sierra EPO (Regional, Traditional)
Kaiser HDHP (Regional, Traditional)
98%
97%
94%
75%
95%
75%
65

| 17
Plan Offerings
Many employers strive to offer a range of healthcare options to their employees.

However, too many options could be confusing or overwhelming.

Number of Plans Offered
29%
37%
18%
8% 7%
9%
15%
30%
15%
32%
14%
20% 19%
15%
33%
1 Plan 2 Plans 3 Plans 4 Plans 5+ Plans
County Government 5000+ Employees California
Types of Plans Offered
53%
12%
30%
2%
18%
8%
55%
18%
21%
3%
9%
38%
Traditional PPOs Only HDHPs Only PPO and HDHP PPO, HDHP, and High Performance/Regional
66

| 18
Self-funded; you meet or exceed the goal
for your group size.

Plan Strategy: Funding Method
Groups with at Least One Self- Funded
Plan, by Group Size
Potential benefits of
unbundling:

Your funding method sets the tone for the rest of your medical and prescription drug decisions. By accepting some claims risk, more strategic possibilities become available. *This graph is for groups with your same number of eligible lives, and the line represents 75% enrollment. Actual enrollment may vary.

GOAL: RESULT:
▪ Claims Administration
▪ Prescription Drug Coverage
▪ Stop Loss Coverage
5-Year Likelihood of Financially Benefiting
from Self-funding; Group Size Similar to Yours
We have tools to assist with a quantitative analysis for self-funding, if applicable.

Most groups with fewer than 50
enrolled probably shouldn't selfinsure. Let's discuss.

Groups with over 200 eligible employees and
75% enrollment may benefit from selffunding.
87%
77%
74%
64%
48%
40%
30%
11%
2,500 and up
1,500 to 2,499
1,000 to 1,499
500 to 999
300 to 499
200 to 299
100 to 199
0 to 99
100% 100% 100% 100% 100%
2025 2026 2027 2028 2029
75% Enrollment* 67

| 19
Opportunity in one or more areas.

Plan Strategy: Population Health
We have measured the percent of employers encouraging visits to a primary care physician, and incentivizing participation in the wellness program. Both are critical for a successful population health management program.

GOAL: RESULT:

Organizations REWARDING primary care
physician engagement
Frequency of Incentives Used
67%
48%
28%
County of Fresno County Government 5000+ Employees California Does
not
reward
44%
19%
25%
0% 2% 0%
29%
19%
15%
4%
9%
3%
9% 11%
18%
1%
8%
1%
Premium
Differentials

HSA / HRA
Funding
Cash or Equivalent
(Gift Cards)
Charitable
Donations
PTO Lifestyle Savings
Accounts (LSA)
County Government 5000+ Employees California Your Incentives Reward physician engagement and use
at least one incentive.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 68

| 20
Population Health Management
Investments in population health management services are getting more specialized. The areas shown below are growing in popularity and may be worth consideration.

Offer multi-level implementation through
digital therapy tools, such as app,
telephonic-, and web-based therapies
You do have this. You do not have this. You do not have this.

Direct primary care can offer a primary
care clinic that comes to the employee on
their schedule.

Provides services that supplement
traditional outpatient care, such as
physical therapy.
46%
16% 14%
57%
13%
24% 26%
7%
3%
Behavioral Health Solutions Direct Primary Care Musculoskeletal Care County Government 5000+ Employees California
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 69

|21
Population Health Management
USI benchmarking goes beyond traditional cost and contribution analysis to include investments aimed at improving overall population health. 21% 22%
38%
12%
22%
9%
16%
20%
Biometric Screenings Health Risk Assessments Lifestyle and Behavior Modification (Wellness
Portal)
Healthcare Data
Analytics/Mining
Gym Reimbursement Worksite or Near-Site
Clinics
Chronic Care
Management
Tobacco Cessation
Programs
Investments in population health management tools
(Your organization’s investments are represented by blue columns) RESULT: You have met or exceeded this
goal. (1 or more).

GOAL: Invest in a competitive number of PHM
tools compared to peer groups
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 70

| 22
You are doing your due diligence
and reviewing your pharmacy
contract in detail.

Plan Strategy: Prescription Drugs
BEST PRACTICE:

Review your pharmacy contract regularly
to ensure contract terms are being met.

YOUR RESPONSE:

Top performing plans manage their pharmacy costs with a good contract, and by holding the PBM accountable to that contract.

This starts by reviewing and negotiating the details of your contract terms.

A competitive pharmacy
strategy consists of
several checkpoints.
▪ Contractual due diligence
▪ Taking financial measurements
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 24%
77%
46%
California
5000+ Employees
County Government
71

| 23
You are currently using financial
measurements to ensure contract
guarantees have been met.

Plan Strategy: Prescription Drugs
BEST PRACTICE:

Take financial measurements and hold
the PBM accountable, when possible.

YOUR RESPONSE:

With a clear understanding of the pharmacy contract, groups must then hold the PBM accountable by verifying they are receiving the prices promised.

A competitive pharmacy
strategy consists of
several checkpoints.
▪ Contractual due diligence
▪ Taking financial measurements
Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 18%
80%
53%
California
5000+ Employees
County Government
72

| 24
Over-Insurance
Summary ▪ GOAL: Have no plans where the employer pays more than 90% of expected cost.

After assessing the
economic and
strategic efficiency
of your plan, here’s
what we found.

Funding Method
▪ GOAL:

Population Health Management
▪ GOAL:

Prescription Drug Strategy
▪ GOAL:

Executive Summary
Opportunity to reduce plan value and still be market-leading.

Self-funded; you meet or exceed the goal for your group size.

Opportunity in one or more areas.

You are currently using financial measurements to ensure contract guarantees have been met.
▪ RESULT:

Most groups with over 200 eligible employees and 75% enrollment may benefit from being self-funded.
▪ RESULT:

Promote physician engagement, use at least one incentive, and invest in some population health management tools.
▪ RESULT:

Use best practices on rebates, formulary, and holding your PBM accountable.
▪ RESULT:
73

| 25
Additional Benefits
Employees who have a particular insurance need place a high value on those benefits when they are offered, even on an unsubsidized basis.

Here are the additional benefits we benchmarked for you:

Dental Paid Time Off
(PTO)
Voluntary or
Worksite
Benefits
74

| 26
There's an opportunity to increase
PTO days at one or more lengths of
service.

Paid Time Off
GOAL: RESULT:

We’re looking at
distinct groupings of
employer tenure
where you may
have an opportunity
to make a change.
▪ Most groups offer PTO
▪ Details on PTO accrual
and FMLA in the
Appendix
12 12
15 20
23 14 15
18 24
10 10
15 20
0 0 0 0 0
<1 year 1 year 5 years 10 years 15+ years
County Government 5000+ Employees California Your Group Offer no more than five fewer days
than the Peer Group Average at any
given length of service.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group.

Svc. Yrs.:
75

| 27
There may be an opportunity to make your
child leave plan more competitive.

Family Leave
Several states mandate maternity leave. If your business is not situated in one of those states, a maternity and/or paternity benefit can be valuable to growing families.

GOAL: RESULT:

Maternity Leave
Days Offered (% Employers offering)
Paternity Leave
Days Offered (% Employers offering)
60 (28.1%)
30 (52.0%)
40 (22.8%)
52 (31.8%)
California
5000+ Employees
County Government
Peer Group Average
County of Fresno, 0
42 (27.0%)
20 (46.7%)
40 (22.8%)
38 (30.1%)
California
5000+ Employees
County Government
Peer Group Average
County of Fresno, 0
Employers that offer maternity leave are
generally considered competitive.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group. 76

| 28
You meet or exceed this goal.

Voluntary, or Worksite Benefits
GOAL: RESULT:

Instead of focusing
solely on medical
benefits, adding
ancillary benefits is
a cost-efficient
way to diversify
your benefits
portfolio.

These benefits appeal to
each employee's unique
needs with little additional
financial burden to the
employer.
(Your organization’s investments are represented by blue columns) Offer one benefit from at least two
separate worksite categories.

Note: “ID” means there was insufficient data to calculate the benchmarks for that peer group.

Supplemental Health
Accident coverage
Critical illness/cancer coverage
Hospital indemnity coverage
Vision (stand alone)
County
Government
5000+
Employees California
2%
58%
58%
35%
18%
12%
89%
84%
14%
14%
7%
7%
86%
49%
74%
75%
17%
61%
40%
20%
11%
53%
85%
88%
51%
53%
32%
32%
95%
59%
73%
73%
6%
29%
36%
23%
5%
37%
71%
68%
33%
28%
4%
4%
88%
49%
62%
63%
Non-Health Insurance
Auto insurance
Homeowners insurance
Prepaid legal
Pet insurance
Flexible Spending
FSA – dependent care
FSA – healthcare
FSA – commuter
Financial & Education Planning
529 college savings
Long term care coverage (stand alone)
Universal life/whole life
Tuition reimbursement allowance
Student debt repayment/refinancing
77

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Dental
▪ GOAL: Affordable contributions and competitive premiums. ▪ RESULT:

Summary
We’ve reviewed your
ancillary coverages
for competitiveness.

Here’s what we’ve
found:

Paid Time Off (PTO)
▪ GOAL: Competitive PTO at several length of service; offer maternity leave. ▪ RESULT:

Voluntary, or Worksite Benefits
▪ GOAL:

Executive Summary
You have at least one competitive plan for single and family premiums. You have at least one competitive plan for single and family contributions.

There's an opportunity to increase PTO
days at one or more lengths of service.

There may be an opportunity to make your
child leave plan more competitive.

You meet or exceed this goal.

A diverse portfolio that spans the full spectrum of coverage offerings for risk-averse employees.
▪ RESULT:
78

| 30
Solutions Summary
Here is a summary of optional solutions and their estimated financial impact to your plan:

Company Cost Profile
Total Healthcare Cost: $0 Funding Method
Number of Employee Enrolled in Medical 0 Self-Funded
Cost per Employee per Year $0
Claims Costs Estimates by Type of Service:

Physician $0 15% n $0
Inpatient $0 21% n $0
Outpatient $0 26% n $0
Prescription Drugs $0 23% n $0
Subtotal $0 85% $0
Estimated Fixed / Retention Cost $0 15% n
Annual Cost $0 100%
USI Solution Options 1 Savings ($) % Comments
Underwriting & Analytics
Alternative Funding Analysis $0 0% You already have at least one self-funded plan.

Comprehensive Underwriting Review 0 0% This is a solution more tuned for a fully-insured group.

USI Stop Loss Consortium 0 2% This is a solution best suited to self-funded groups.

HR Services
Spousal Coverage Strategy 0 9% We can discuss some spousal coverage options.

Effective Benefit Communcations varies varies The level of savings depends on how much you're spending on comm's today.

Population Health Management
Incentivized Physician Engagement 0 3% This is low-hanging fruit for most groups. Let's discuss.

USI CORE Health Strategy 0 1% Our CORE health savings is additive to incentivized physician engagement.

Pharmacy
USI Clear Options Rx 0 5% Our Clear Options program can save money whether you're carved in or out.

Independent Prior Authorization 0 6% A great way to manage cost for special medications.

Pharmacy Contract Analysis 0 3% Evaluating the strength of your pharmacy contract provides opportunity to save money.

Total Savings Estimate $0 29%
1 Not an exhaustive list. Solutions such as reference-based pricing can also save self-funded plan up to an additional 30% of total cost. 0% 0%
79

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Disclosures
CONFIDENTIAL AND PROPRIETARY: The information, including but not limited to, text, graphics, images and other material contained on this document is for informational purposes only. The purpose of this benchmarking report is to promote understanding and knowledge of the topics contained therein. It is not intended to be a substitute for professional risk management advice. USI does not accept any responsibility for the content of the information provided or for consequences of any actions taken on the basis of the information provided.
© 2024 USI Insurance Services. All rights reserved.
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Benchmarking Table 1
Qualified High Deductible Plans – Benefit Components
Only shown on group plans, as applicable:
** Benefit paid after deductible met, subject to coins.; * Benefit paid after deductible met, not subject to coins.; ‘ Benefit subject to coins., deductible does not apply.

County
Government
5000+
Employees California
Deductibles / OOP Maximums
Individual deductible $3,000 $2,500 $2,800
Family deductible $6,000 $5,000 $5,400
Individual OOP max $4,000 $5,000 $5,500
Family OOP max $8,000 $10,000 $11,000
HSA / HRA Employer Funding - % Offering 52% 61% 38%
Single Total, when offered $1,000 $500 $1,000
Family Total, when offered $1,500 $1,000 $1,600
Coinsurances and Copays
Coinsurance (for those offering) 20% 20% 20%
Groups with 0% Coinsurance (100% Plan) 43% 13% 25%
Median copay, when required
PCP Copay ID ID $30
Specialist Copay ID ID $50
ER Copay ID $300 $100
Urgent Care Copay ID ID $35
Inpatient Hospital Copay ID ID $250
Outpatient Surgical Copay ID ID $150
Prescription Drug Cost Sharing
Tier 1 Copay $10 $10 $10
Tier 1 Coinsurance 20% 20% 25%
Tier 2 Copay $35 $35 $30
Tier 2 Coinsurance 20% 20% 25%
Tier 3 Copay $60 $55 $50
Tier 3 Coinsurance 20% 23% 25%
Actuarial Plan Value
% of Total Cost Covered by Plan - including HRA/HSA 78% 75% 74% % of Total Cost Covered by Plan - excluding HRA/HSA 74% 71% 70% 81

| 33
Benchmarking Table 2
Qualified High Deductible Plans – Funding, Premiums, and Contributions County
Government
5000+
Employees California
Percentage of groups that offers this type of plan 43% 74% 40% Percentage of groups by funding type
Fully--insured 30% 9% 81%
Self--insured 70% 91% 19%
Out of network offered 100% 99% 87%
Monthly Premium
Single $735 $606 $662
EE+Spouse $1,573 $1,298 $1,398
EE+Chld(rn) $1,578 $1,123 $1,264
Family $2,000 $1,787 $1,980
Employee Payroll Contribution
Single $44 $112 $96
EE+Spouse $237 $332 $356
EE+Chld(rn) $233 $270 $316
Family $295 $446 $540
Monthly Employer Contribution Percentage
Single 94% 82% 86%
EE+Spouse 85% 74% 75%
EE+Chld(rn) 85% 76% 75%
Family 85% 75% 73%
82

| 34
Benchmarking Table 3
Regional or Performance Network Plans – Benefit Components Only shown on group plans, as applicable:
** Benefit paid after deductible met, subject to coins.; * Benefit paid after deductible met, not subject to coins.; ‘ Benefit subject to coins., deductible does not apply.

Anthem Yosemite
EPO Anthem Sierra EPO
Anthem Pismo
Beach EPO Kaiser HMO Kaiser HDHP
County
Government
5000+
Employees California
Deductibles / OOP Maximums
Individual deductible $0 $0 $0 $0 $3,300 $0 $0 $0
Family deductible $0 $0 $0 $0 $6,000 $0 $0 $0
Individual OOP max $1,000 $3,000 $4,000 $1,000 $3,300 $1,500 $2,650 $4,000 Family OOP max $2,000 $6,000 $8,000 $2,000 $6,000 $3,000 $6,000 $8,000 HSA / HRA Employer Funding - % Offering 8% 1% 2%
Single Total, when offered $0 $0 $0 $0 $0 ID ID $1,350
Family Total, when offered $0 $0 $0 $0 $0 ID ID $2,700
Coinsurances and Copays
Coinsurance (for those offering) 0% 0% 0% 0% 0% ID 20% 30% Groups with 0% Coinsurance (100% Plan) 85% 46% 46%
Median copay, when required
PCP Copay $15 $35 $35 $15 $0* $15 $20 $30
Specialist Copay $15 $35 $35 $15 $0* $15 $25 $40
ER Copay $100 $250 $300 $100 $0* $50 $100 $150
Urgent Care Copay $15 $35 $35 $15 $0* $15 $20 $30
Inpatient Hospital Copay $0 $500 $1000 $0 $0* ID $125 $500 Outpatient Surgical Copay $0 $0 $0 $15 $0* $15 $50 $250 Prescription Drug Cost Sharing
Tier 1 Copay $10 $10 $10 $10 $0 $5 $10 $10
Tier 1 Coinsurance 0% 0% 0% 0% 0% ID ID ID
Tier 2 Copay $20 $20 $20 $20 $0 $20 $30 $30
Tier 2 Coinsurance 0% 0% 0% 0% 0% ID ID 40%
Tier 3 Copay $35 $35 $35 $0 $0 $50 $30 $50
Tier 3 Coinsurance 0% 0% 0% 0% 0% ID ID 40%
Actuarial Plan Value
% of Total Cost Covered by Plan - including HRA/HSA 98% 95% 94% 97% 75% 98% 93% 92% % of Total Cost Covered by Plan - excluding HRA/HSA 98% 95% 94% 97% 75% 98% 93% 92% 83

| 35
Benchmarking Table 4
Regional or Performance Network Plans – Funding, Premiums, and Contributions Anthem Yosemite
EPO Anthem Sierra EPO
Anthem Pismo
Beach EPO Kaiser HMO Kaiser HDHP
County
Government
5000+
Employees California
Percentage of groups that offers this type of plan 14% 30% 80% Percentage of groups by funding type
Fully--insured 92% 80% 99%
Self--insured l l l l l 8% 20% 1%
Out of network offered 2% 3% 0%
Monthly Premium
Single $0 $0 $0 $0 $0 $836 $737 $693
EE+Spouse $0 $0 $0 $0 $0 $1,682 $1,514 $1,496
EE+Chld(rn) $0 $0 $0 $0 $0 $2,172 $1,456 $1,439
Family $0 $0 $0 $0 $0 $2,187 $2,282 $2,024
Employee Payroll Contribution
Single $0 $0 $0 $0 $0 $28 $166 $124
EE+Spouse $0 $0 $0 $0 $0 $450 $415 $500
EE+Chld(rn) $0 $0 $0 $0 $0 $422 $359 $452
Family $0 $0 $0 $0 $0 $702 $572 $730
Monthly Employer Contribution Percentage
Single 97% 77% 82%
EE+Spouse 73% 73% 67%
EE+Chld(rn) 81% 75% 69%
Family 68% 75% 64%
84

| 36
Benchmarking Table 5
Traditional National Network Plans – Benefit Components Only shown on group plans, as applicable:
** Benefit paid after deductible met, subject to coins.; * Benefit paid after deductible met, not subject to coins.; ‘ Benefit subject to coins., deductible does not apply.

Anthem HDPPO
County
Government
5000+
Employees California
Median plan provisions
Individual deductible $3,300 $1,000 $750 $500
Family deductible $6,000 $2,000 $1,600 $1,500
Individual OOP max $3,300 $3,625 $3,500 $5,000
Family OOP max $6,000 $8,000 $7,500 $10,000
HRA Employer Funding - % Offering 5% 7% 4%
Single Total, when offered $0 ID $500 $1,000
Family Total, when offered $0 ID $1,500 $2,000
Coinsurances and Copays
Coinsurance (for those offering) 0% 20% 20% 20%
Groups with 0% Coinsurance (100% Plan) 14% 16% 10%
Median copay, when required
PCP Copay $0* $25 $25 $30
Specialist Copay $0* $35 $40 $50
ER Copay $0* $200 $200 $200
Urgent Care Copay $0* $35 $45 $35
Inpatient Hospital Copay $0* $250 $350 $250
Outpatient Surgical Copay $0* $150 $200 $200
Median prescription drug cost sharing
Tier 1 Copay $0 $10 $10 $10
Tier 1 Coinsurance 0% 20% 20% 20%
Tier 2 Copay $0 $30 $35 $35
Tier 2 Coinsurance 0% 20% 20% 25%
Tier 3 Copay $0 $50 $63 $60
Tier 3 Coinsurance 0% 20% 40% 50%
Actuarial Plan Value
% of Total Cost Covered by Plan - including HRA/HSA 75% 85% 84% 83% % of Total Cost Covered by Plan - excluding HRA/HSA 75% 84% 84% 82% 85

| 37
Benchmarking Table 6
Traditional National Network Plans – Funding, Premiums, and Contributions Anthem HDPPO
County
Government
5000+
Employees California
Percentage of groups that offers this type of plan 84% 90% 71% Percentage of groups by funding type
Fully--insured 34% 13% 79%
Self--insured l 66% 87% 21%
Out of network offered l 100% 98% 99%
Monthly Premium
Single $0 $885 $715 $881
EE+Spouse $0 $1,802 $1,578 $1,863
EE+Chld(rn) $0 $1,783 $1,367 $1,756
Family $0 $2,435 $2,218 $2,575
Employee Payroll Contribution
Single $0 $77 $159 $158
EE+Spouse $0 $328 $456 $538
EE+Chld(rn) $0 $316 $406 $470
Family $0 $441 $651 $799
Monthly Employer Contribution Percentage
Single 91% 78% 82%
EE+Spouse 82% 71% 71%
EE+Chld(rn) 82% 70% 73%
Family 82% 71% 69%
86

| 38
Benchmarking Table 7
DEI and Work From Home Strategies
Diversity, Equity and Inclusion (DEI) Strategies
None at this time
DEI is included as a specific goal in our company objectives We have a dedicated team or department
We offer DEI training and education for our employees
Future of remote work for most employees
Most employees will work remotely much of the time
Move toward hybrid schedules that include both remote and in-office time Offer increased flexibility to work remotely part-time for some classes of employees, but most employees will return to the office Employees will return to the office as soon as feasible 40% 17% 34%
18% 48% 38%
19% 51% 23%
12% 15% 9%
19% 11% 13%
0% 6% 15%
24% 35% 22%
27% 27% 16%
l
l
County of Fresno County
Government
5000+
Employees California
Employees are currently working in the office
3% 2% 4%
Remote Work Availability
We have implemented initiatives to increase diversity in our recruitment and hiring processes We partner with external organizations to further DEI efforts We have redesigned our medical plans to address specific DEI needs (e.g., adding transgender surgery) Prefer not to answer
45% 30% 43%
23% 51% 31%
23% 43% 35%
2% 16% 9%
87

| 39
Benchmarking Table 8
Population Health Management – Culture and Approach
Percentage of groups that offer Financial Wellness resources or training:

Percentage of groups that reward PCP engagement as part of the overall population health strategy:

Percentage of groups offering rewards as population health/wellness incentive:

Premium Differentials/Credits
HSA/HRA Funding
Cash or Cash Equivalents (Gift Cards)
Charitable Donations
PTO
Company making population health risk management investments in the following areas:

Biometric Screenings
Health Risk Assessments
Behavioral Health Solutions
Lifestyle and Behavioral Modification (Wellness Portal) Healthcare data analytics/mining
Gym Reimbursement
Onsite/Near-site Clinics
33% 16% 13%
67% 48% 28%
44% 29% 9%
19% 19% 11%
25% 15% 18%
0% 4% 1%
2% 9% 8%
53% 33% 16%
49% 37% 16%
46% 57% 26%
49% 52% 34%
26% 39% 7%
21% 23% 22%
32% 17% 5%
35% 55% 9%
l
l
l
l
County of Fresno County
Government
5000+
Employees California
Chronic Care Management
Direct Primary Care
Musculoskeletal Care
16% 13% 7%
14% 24% 3%
Tobacco Cessation Programs l 35% 48% 15%
Wellness Premium Differentials/Credits or HSA/HRA Funding, Avg Monthly Incentive (excludes tobacco surcharge):

Tobacco Use Surcharges
Company charges a tobacco-use surcharge
Average Monthly Tobacco-use Surcharge
2% 23% 0%
$25 $75 ID
$50 $50 $44
Lifestyle Savings Accounts (LSA) 0% 3% 1%
Enhanced Population Health Management Solutions offered:

Behavioral health solutions beyond standard EAP services Cancer care management
Musculoskeletal solutions
28% 41% 21%
14% 17% 4%
11% 27% 3%
None of these 65% 43% 76%
88

| 40
Benchmarking Table 9
Employee Engagement
Percentage of groups using engagement opportunities during open enrollment:

We host a benefit fair, either in person or virtual
HR has an open-door policy regarding personal coverage questions and will answer specific questions We encourage our employees to utilize our third-party health or claims advocacy service Case studies are provided that illustrate how our plans/contributions compare on an annualized basis We illustrate tax savings examples for our FSA and/or HSA plans and explain these accounts in detail Employees are invited to bring spouses to open enrollment sessions We host after hour webinars/recorded open enrollment presentations to include employees and spouses We utilize interactive decision support services
Percentage of groups hosting any of the following events, outside of open enrollment:

Health Savings Account information sessions
Enrollment meetings for voluntary lines of coverage (critical illness, prepaid legal, pet insurance, etc.) Retirement/401(k) information sessions detailing investment options Financial wellness presentations
Wellness classes (healthy cooking, mindfulness, yoga, etc.) Other
Percentage of groups utilizing any of the following methods to educate employees:

Newsletters (either partially or entirely dedicated to health-related topics) Educational audio/visual content related to benefits hosted on intranet or emailed to employees Home mailers announcing upcoming changes to benefits, OE dates or other benefit related material Posters and/or internal TV stations discussing benefit or wellness related materials Mobile application
44% 32% 23%
91% 69% 93%
88% 76% 88%
23% 24% 26%
7% 16% 16%
42% 45% 47%
47% 21% 17%
42% 60% 60%
12% 16% 18%
32% 19% 30%
65% 52% 60%
37% 45% 31%
32% 36% 29%
58% 69% 47%
47% 49% 43%
33% 73% 35%
28% 60% 36%
l
l
l
l
l
County of Fresno County
Government
5000+
Employees California
We walk through plan designs, explain networks and answer general questions regarding coverage Benefits website/microsite
Texting campaign
l 26% 33% 45%
l 68% 80% 63%
5% 19% 5%
5% 27% 8%
16% 11% 7%
89

| 41
Benchmarking Table 10
Pharmacy and Other Benefits Strategies
Pharmacy Strategies
Percent of companies taking financial measurements to ensure pharmacy contract guarantees have been achieved Percent of companies using a separate third-party vendor to manage pharmacy benefits (carve-out?) Approaches to handling prescription drug rebates from carrier or PBM The carrier administering our pharmacy benefits does not share rebate details with us Rebates are applied to our account to offset other costs (medical credit) We receive a check for a portion of the total rebate amount We receive a check for the total amount of pharmacy rebates Specialty Rx Benefits
We have a separate, specialty Rx benefit (e.g. Tier 1, 2, 3, and Specialty Rx) Specialty drugs fall under one of our traditional Rx tiers (e.g. Tier 1, 2, 3) Current drug formulary
Our carrier/PBM does not allow changes to the formulary We are using their standard formulary but have the option of a “value” formulary We choose a “value” formulary option
We have the ability to create custom formulary lists
Spousal Surcharges
Special provisions concerning coverage for spouses who have coverage available through their employer Charges extra payroll contributions for spouses who elect our coverage but have coverage available through their employer Requires spouses to take coverage from their employer
No special provisions
Monthly spousal surcharge amount
53% 80% 18%
30% 55% 10%
40% 12% 80%
23% 24% 10%
9% 17% 4%
28% 47% 6%
51% 61% 59%
49% 39% 41%
49% 16% 66%
35% 56% 26%
7% 13% 6%
9% 15% 2%
9% 16% 3%
18% 13% 1%
ID $200 $140
l
l
l
l
l
County of Fresno County
Government
5000+
Employees California
Percent of companies that have explored a Pharmacy Assistance Program (PAP) to assist with coverage of Specialty Rx 35% 45% 8% l 74% 71% 96%
Coverage of GLP-1s
Percent of companies providing coverage for adults with type 2 diabetes Providing coverage if prescribed for weight loss
Considering adding coverage for weight-loss in the future 16% 20% 21%
5% 13% 4%
Coverage of Gene Therapies
Groups considering excluding gene therapies from coverage under their plan(s) Percent of companies not considering exclusion of gene therapies Have already amended their plan documents to exclude some or all gene therapies 72% 71% 83%
7% 4% 1%
21% 25% 16%
79% 76% 55%
90

| 42
Benchmarking Table 11
Dental PPO – Benefit Components
In-Network Benefits: Deductible
Individual
Family
In-Network Benefits: Coinsurance
Preventive Services
Basic Restorative
Major
In-Network Benefits: Annual Maximum
In-Network Benefits: Orthodontia
Offered
Deductible
Orthodontia Lifetime Maximum
Delta Dental DPPO County
Government
5000+
Employees California
$50 $50 $50
$75 $100 $150
None None None
80% 80% 80%
50% or less 50% or less 50% or less
$1,500 $1,500 $1,500
65% 56% 58%

ID ID ID
$1,200 $1,500 $1,500
$50
$150
No coinsurance
90%
50% or less
$2,500
l
$00
$1,660
91

| 43
Benchmarking Table 12
Dental PPO – Funding, Premiums, and Contributions
Percentage of groups offering Dental PPO:

Percentage of groups by dental PPO funding type:

Fully-Insured
Self-Insured
Dental PPO Monthly Premium
Single
Dental PPO Monthly Employee Payroll Contribution
Single
EE+Spouse
Monthly Employer Contribution Percentage
Single
EE+Spouse
92% 93% 88%
72% 43% 83%
28% 57% 17%
$35 $30 $45
$67 $50 $88
47% 54% 54%
38% 38% 49%
l
$0
$0
Delta Dental DPPO County
Government
5000+
Employees California
EE+Child(rn)
Family
$15 $17 $14
$32 $25 $38
$0
$0
EE+Child(rn)
Family
57% 43% 69%
52% 50% 57%
Family
$73 $59 $106
$108 $98 $147
$0
$0
$39 $27 $49
$67 $61 $75
$0
$0
EE+Spouse
EE+Child(rn)
92

| 44
Benchmarking Table 13
Dental HMO – Funding, Premiums, and Contributions
Percentage of groups offering a Dental HMO
Dental HMO Monthly Premium
Single
Dental HMO Employee Payroll Contribution
Single
Monthly Employer Contribution Percentage
Single
12% 11% 31%
$43 $15 $16
$75 $26 $29
$23 $5 $6
$50 $9 $16
47% 67% 63%
33% 65% 45%
Delta Dental DHMO County
Government
5000+
Employees California
$0
$0
$0
$0
Family
$102 $33 $37
$115 $40 $45
$0
$0
EE+Spouse
EE+Child(rn)
Family
$40 $10 $22
$56 $14 $28
$0
$0
EE+Spouse
EE+Child(rn)
Family
61% 70% 41%
51% 65% 38%
EE+Spouse
EE+Child(rn)
93

| 45
Benchmarking Table 14
Vision
Percentage of groups offering a Vision Plan
Vision median plan provisions:

Exam Copay
Exam Frequency
Lenses Frequency
Frames Frequency
Vision Monthly Premium
Single
Family
Vision Monthly Employee Payroll Contribution
Single
Family
Monthly Employer Contribution Percentage
Single
Family
78% 81% 82%
$10 $10 $10
12 months 12 months 12 months
12 months 12 months 12 months
12 months 24 months 24 months
$7 $6 $8
$21 $18 $23
$6 $6 $5
$19 $17 $18
14% 0% 38%
10% 6% 22%
Vision Service Plan County
Government
5000+
Employees California
$10
12 Months
12 Months
24 Months
$0
$0
$0
$0
0%
0%
94

| 46
Benchmarking Table 15
Paid Time Off
Paid Time Off
Percentage of groups offering paid time off, excluding paid holidays Percent offering unlimited PTO/employees can take off up to 365 days each year Percentage of groups offering sick days
Number of PTO days based on years of service / tenure, not including holidays Less than a year of service
1 year of service
5 years of service
10 years of service
15+ years of service
PTO Usage versus Accrual
Employees can use time they have not yet accrued
Employees can only use time they have accrued
The entire allotment of PTO time is available on the first day of each annual cycle PTO rollover is allowed
Average number of days of rollover, when allowed
Employees are allowed to donate PTO to coworkers
Average number of days allowed for:

Paid Sick Leave
Paid Holiday Days
Paid Community Service/Charity Days :

Paid Bereavement Days
Outsources FMLA (not including groups under 50 employees) Maternity and Paternity Benefits
Percent of employers offering paid maternity days
Number of paid maternity days when offered
Percent of employers offering paid paternity days
Number of paid paternity days when offered
96% 91% 87%
0% 3% 9%
68% 37% 70%
12 14 10
12 15 10
15 18 15
20 20 20
23 24 20
2% 40% 17%
98% 49% 80%
0% 12% 3%
84% 69% 75%

30.5 12.5 20
61% 25% 13%
12 7.5 5
12 8 10

1.75 1 2
3 3 3
9% 46% 20%
23% 52% 28%
40 30 60
23% 47% 27%
40 20 42
County of Fresno County
Government
5000+
Employees California
l
l
95

| 47
Benchmarking Table 16
Basic Life
Basic Life
Percent of groups offering basic life insurance
1 times pay

1.5 times pay
2 times pay
Another multiple of pay
Flat amount
County Basic Life County
Government
5000+
Employees California
63% 77% 67%
17% 24% 16%
1% 4% 2%
6% 13% 11%
1% 9% 4%
l 75% 51% 67%
l
Average Flat Amount
Benefit Maximum
$25,000 $30,000 $50,000
$45,000 $250,000 $50,000
$10,000
96

| 48
Benchmarking Table 17
Short- and Long-Term Disability
Short-Term Disability
Percentage of groups offering short-term disability
100% of the premium is paid by the employer
Partially paid by the employer
None, the entire premium is paid by the employee
Elimination Period (Days)
Accident
Illness
Policy Details
% of Salary covered by Short-Term disability benefit
Maximum weekly dollar benefit paid by Short-Term disability program Total weeks Short-Term disability benefits paid
Long-Term Disability
Percentage of groups offering long-term disability
100% of the premium is paid by the employer
Partially paid by the employer
None, the entire premium is paid by the employee
Policy Details
% of Salary covered by long-term disability benefit
Maximum monthly dollar benefit paid by your long-term disability program County
Government
5000+
Employees California
County
Government
5000+
Employees California
Managment
Long Term
Disability
37% 71% 31%
27% 52% 59%
0% 15% 4%
73% 33% 37%
7 7 7
7 7 7
60% 60% 60%
$1,000 $2,000 $1,572
23 25 13
46% 73% 46%
36% 40% 79%
15% 23% 5%
49% 37% 16%
60% 60% 60%
$6,000 $10,000 $10,000
l
l
0%
$00
97