RFP_31786-00187_Draft_The_TN_Plan_Attachment_6.3_Cost_Proposal.xlsx

This is a Cost Proposal and Scoring Guide attachment for RFP #31786-00187 issued by the State of Tennessee, Department of Finance and Administration, Division of Benefits Administration, seeking administrative services for The Tennessee Plan, a self-insured supplemental medical insurance program for Medicare-eligible state retirees. Respondents are required to submit proposed monthly administrative fees on a per-member basis for each calendar year from 2027 through 2031, with the cost proposal remaining valid for at least 120 days following the proposal opening date. The evaluation methodology allocates a maximum of 50 points to the cost proposal component, calculated using a comparative formula that awards points based on the relationship between each proposal's evaluation cost and the lowest evaluation cost submitted across all proposals. The contract period runs from January 1, 2027, through December 31, 2031, with an evaluation factor of 48 members applied to the annual administrative fees for scoring purposes.

All monetary amounts must be submitted in U.S. currency with exactly two decimal places, and respondents must complete all cells in the pricing schedule without exception; blank cells or non-compliant entries will be treated as zero cost to the State. The cost proposal must be signed by an individual with authority to bind the respondent organization, with supporting documentation of signatory authority required if the signer is not the President or Chief Executive Officer. If all proposals receive evaluation costs totaling zero, the maximum section score will be awarded to all respondents, with the State using one cent ($0.01) as the baseline for calculating comparative point allocations. The current incumbent is UMR, Inc., with the existing contract expiring on June 30, 2028; the plan currently serves approximately 48,059 members as of July 2025, with historical enrollment growth of 1,500 to 2,000 members annually and annual claims costs increasing at approximately four percent.