Flex Spending Account and Medicare HRA Administration

The City of Murfreesboro, Tennessee, located in Rutherford County, is seeking a comprehensive administrator for its Section 125 plans through a Request for Competitive Sealed Proposals (RFCSP-02-2023). The procurement opportunity focuses on administering premium conversion, flexible spending accounts (FSAs), and a post-Medicare retirement Health Reimbursement Arrangement (HRA) for municipal employees. The contract will span an initial three-year term beginning January 1, 2023, with potential extensions for two additional one-year periods, totaling a possible five-year engagement. Proposals are due on July 28, 2022, at 2:00 P.M. CST, and will be evaluated using a 100-point scoring system that considers factors such as transition/implementation, cost per employee, reimbursement processing, customer service, debit card management, online capabilities, qualifications, references, and additional criteria. The city currently serves approximately 1,154 active full-time employees and their dependents, 70 pre-Medicare early retirees/long-term disabled and their dependents, and 125 post-Medicare retirees/long-term disabled and their dependents.

The solicitation does not explicitly mention specific set-aside designations or restrictions on respondent types. The incumbent vendor is Health Equity/WageWorks, whose current contract expires on December 31, 2022. The post-Medicare HRA will cover qualified expenses as defined by IRS Code Section 213(d), including deductibles, coinsurance, copayments, premiums for qualified health plans, over-the-counter medications with prescription, and other health care-related costs. While specific budget ranges are not detailed in the provided documentation, the scope suggests a comprehensive administrative service for the city's flexible spending and health reimbursement programs. Proposers must provide extensive documentation regarding their organization's qualifications, experience, references, key personnel, data security protocols, communication strategies, and expected roles and responsibilities. The procurement will require a sophisticated understanding of Section 125 plan administration, healthcare reimbursement mechanisms, and robust technological infrastructure to support employee benefits management.