SFHSS awards life and disability contract to New York Life, cites roughly $2 million in annual savings

The San Francisco Health Service Board unanimously approved staff’s recommendation to award the life and disability benefits contract to New York Life, replacing Hartford for employer‑paid group life and long‑term disability and Manhattan Life for short‑term disability where applicable.

Michael Visconti, SFHSS contracts administration manager, presented the results of a months‑long RFP process and said New York Life’s proposal scored highest on non‑financial and financial criteria. The recommendation covers four benefit lines: employer‑paid basic group life and long‑term disability (LTD), plus voluntary employee‑paid supplemental life/AD&D and short‑term disability (STD) offered through the third‑party voluntary‑benefits administrator. Staff said the selection preserves existing union‑negotiated terms for group life and LTD and eliminates any need for statements of health or evidence of insurability for current covered amounts.

Aon actuary Mike Clark presented proposed rates from New York Life. Staff said the selection will consolidate STD and LTD under a single carrier (New York Life) for smoother claim transitions, and includes implementation credits and member‑education support. Michael Visconti said New York Life guaranteed the quoted employer‑paid rates for five years for the basic life and LTD programs; short‑term disability rates carry a three‑year rate guarantee. Visconti reported carrier transition credits totaling more than $500,000 to support implementation and member outreach.

Staff estimated approximately $2 million in annual savings across the four lines of benefits compared with current carriers, with the largest single component of savings coming from the LTD line (about $1.7 million annually). The record shows the recommendation called for discontinuing Hartford Life and Accident Insurance Company for employer‑paid group life and LTD and discontinuing Hartford supplemental life/AD&D and Manhattan Life short‑term disability if New York Life is approved.

The board voted unanimously in favor. Roll call: Chair Kremen (Aye), Supervisor Matt Dorsey (Aye), Commissioner Diana Guevara (Aye), Commissioner Wilson (Aye).

Ending: Staff will proceed to contract negotiation and implementation work and described a multi‑front transition plan that includes programming for open enrollment, beneficiary‑form collection, and audit support to ensure there is no loss of coverage for current participants.