Amendment 1 DBM Cobra BPM057552 8.5.2026 FINAL.pdf
PDF 407 KB Posted
- Attached to
- DBM Billing and COBRA Administration System
- Solicitation number
- BPM057552
- Issued by
- Maryland
About this file
This is Amendment #1 to a Request for Proposal issued by the State of Maryland's Department of Budget and Management for COBRA Billing and Administration services (BPM# 057552), effective August 5, 2026. The amendment revises the original solicitation to establish a ten-year contract term with no renewal options, with an anticipated implementation start date in October 2026. The State seeks a vendor to administer COBRA continuation coverage for approximately 78,000 active employees across one location within the Employee Benefits Division, supported by 12-15 administrative users. The State processes approximately 923 qualifying events monthly, 1,530 new hires monthly, and 1,451 terminations monthly, with approximately 300 current COBRA active participants and 1,850 COBRA-eligible former employees within their election period. The administration scope includes management of twelve qualified health plans across six insurance carriers, all renewing January 1st annually. Virtual oral presentations were scheduled for August 24-25, 2026 by appointment.
The administrative fee structure is presented as a fully-loaded Per Employee Per Month (PEPM) fixed rate covering all services including account management, participant communications, and compliance activities; vendors do not retain the 2% administrative fee paid by COBRA participants through premiums. Direct billing services are included in the scope, with approximately 3,000 participants expected to be subject to direct billing as of January 1, 2027, and approximately 2,700 current invoice recipients transitioning to payroll deductions on the same date. The State will retain responsibility for printing and mailing COBRA notices, with vendors providing templated notifications for State distribution. The amendment incorporates vendor questions and answers addressing operational specifics, clarifies required submission documents and attachments, and confirms the State operates on a fiscal year from July 1 through June 30.
View the file
Other files
Show all 37
On GovTribe
Work with this file
- Download the original file
- Contacts named in this file
- Similar government files
- Ask GovTribe AI about this file
Text version
Amendment #1
Solicitation for the Department of Budget and Management
COBRA Billing and Administration
BPM# 057552
August 5, 2026
Ladies/Gentlemen:
This Amendment is being issued to amend and clarify certain information contained in the above referenced RFP. All information contained herein is binding on all Offerors who respond to this RFP. The specific elements of the Request for Proposal (RFP) that have been amended are outlined below. The changes/additions are listed below marked in bold (i.e., word) and language deleted has been marked with a strikeout (i.e., word).
Attachments have been included previously not listed in the original posting. Questions and
Answers are being incorporated as well as clarifications on the proposal. Participating vendors are appreciated for their input and questions submitted.
1. Revised Term of Contract: Identified on Page 3 of the RFP, the Contract Term has been revised to a Ten (10) year contract term, no options.
2. Omitted Prior: Attachment O – Employee Healthcare Expense Certification (Vendor to complete and submit with proposal, submit with “TAB F” for Technical Proposal.
3. Responses to Vendor Questions (Deadline was July 30, 2026):
a. What is the anticipated start date?
Approximately, October 2026 to begin implementation. Please see Section
2.3.3 Project Activity and Due Dates - Table 2 - Implementation Timeline for additional information.
b. What is the number of Administrative Users?
12-15
c. How many locations/branches?
One (1) - all within the Employee Benefits Division.
d. How many insured employees?
Approximately 78,000 active employees insured.
e. What was the number of insured employees in 1/1/25 & 1/1/24?
Approximately 76,000 on 1/1/2025 and approximately 74,000 on 1/1/2024 active employees insured.
f. How many COBRA active participants are there currently? Please exclude beneficiaries.
Approximately 300.
g. How many participants are on Direct Billing?
Approximately 3,000 are expected to be subject to direct billing as of
1/1/2027. Another ~2,700 currently receiving invoices will begin payroll deductions on 1/1/2027.
h. What is the population of COBRA eligible former employees who have not elected COBRA continuation, but are still within their election period? Please exclude beneficiaries. ~1,850
i. What is the average number of COBRA qualifying events per month? 923
j. What is the average number of new hires per month? 1,530
k. What is the average number of terminations per month? 1,451
l. What is the average COBRA Medical Premium?
The State has multiple classifications of employees. Rate sheets can be found on our website here: https://dbm.maryland.gov/benefits/Pages/default.aspx
The Direct Pay worksheet reflects the 2026 COBRA rates.
m. Are you looking for a vendor to carry out open enrollment for the COBRA population?
No. The State will manage the open enrollment.
n. How many COBRA qualified plans are there within the scope of the RFP? Please list their renewal dates.
There are twelve (12) qualified plans - all renew on January 1.
o. How many insurance carriers provide plans to the State?
There are six (6) insurance carriers providing plans to the State.
p. Does the award vendor retain the 2% administration fee?
No, the award vendor will not retain the 2% administrative fee the COBRA participant pays through payment of the monthly premium.
See B-1 Instructions (4.) of the Attachment B Billing and COBRA RFP
Financial Proposal which states:
“For purposes of Attachment B-4, "Per Employee Per Month (PEPM)" means a price for each eligible employee on a monthly basis which is a fully-loaded fixed administrative fee, for the performance of all services related to the administration of services, including all account management services, participant communications services, and all other administrative services related to the Program.”
q. Please provide the presentation dates for oral presentations.
Virtual Presentations will be offered Monday August 24 and Tuesday August
25, 2026 by appointment.
r. Fiscal year start & end date
The State of Maryland operates on a fiscal year beginning July 1, ending
June 30th.
https://dbm.maryland.gov/benefits/Pages/default.aspx
s. What have been some of the internal challenges the State hopes to enhance by moving the administration to an outsourced model?
The State has been using a legacy system integrated with our system of record, which is inefficient in many ways. Timely notification to carriers of new COBRA participants and terminations. Improved invoicing and payment processes. Increased compliance.
t. How should bidders present pricing for the Direct Billing portion of the SOW as the pricing sheet is for the COBRA administration PEPM?
See B-1 Instructions (4.) of the Attachment B Billing and COBRA RFP
Financial Proposal which states “For purposes of Attachment B-4, "Per
Employee Per Month (PEPM)" means a price for each eligible employee on a monthly basis which is a fully-loaded fixed administrative fee, for the performance of all services related to the administration of services, including all account management services, participant communications services, and all other administrative services related to the Program.”
u. Based on the excerpt from the SOW Section 2.3.1 (E) is it the intent for the State to handle the mailing and printing of COBRA notices with the vendor passing along the templated notifications to the State for print and distribution?
Yes, see Section 2.3.1 (E) and Appendix 9 Performance Guarantees.
4. Clarification of the required documents for submission. The chart below outlines the documents, please follow all directions for completion according to the RFP and document instructions:
Document Description RFP Request for Proposal Document including
Scope of Work IT Supplemental Details deliverables and IT requirements Attachment 1 “No Bid” notice for vendors Attachment 2 Pre-Proposal Conference RSVP for vendors Attachment A Proposal Affidavit Attachment B Financial Proposal Form Attachment C N/A – Bid Bond Not Required Attachment D MBE Forms Attachment E VSBE Forms Attachment F Bidder Information Sheet Attachment G MD Living Wage Agreement Attachment H N/A – Federal Funds Requirements Attachment I Conflict of Interest Statement Attachment J N/A – Mercury Affidavit Attachment K Location of Services Disclosure
Attachment L Reference Checks Attachment M List of Current State Contracts Attachment N Legal Action Summary Attachment O Healthcare Coverage Agreement Attachment P Prime Contractors List of Sub-Contractors Attachment Q Labor Resume Form Attachment R Corporate Diversity Addendum Attachment S Contractor Non-Disclosure Agreement Attachment T HIPPA Business Associate Agreement Attachment U Contract Affidavit Attachment V DHS Hiring Agreement Attachment W N/A Performance Bond Attachment X N/A Payment Bond Attachment Y Data Use Agreement Exhibit 1 MBE/VSBE/SBR Research Factors Exhibit 2 Sample Contract Appendix 1 Abbreviations & Definitions Appendix 2 N/A – Price Form Instructions (Included in
Financial Proposal Form) Appendix 3 N/A – Labor Categories Appendix 4 MBE Participation Goal Appendix 5 VSBE Participation Goal Appendix 6 Living Wage Requirements Appendix 7 N/A – Bonds Appendix 8 Economic Benefit Factors Appendix 9 Performance Guarantees – included in the last portion of the RFP Appendix 10 Explanations & Deviations Attachment
This concludes the revisions and clarification for Amendment #1
Cynthia Beres
Procurement, State of Maryland
File details come from the government source that posted it. Updated .