Flexible Spending Administration Services

The State of Illinois, through the Department of Central Management Services (CMS), is seeking proposals from qualified vendors to provide flexible spending account administration services for eligible state and local government employees. The contract will cover the administration of Flexible Spending Accounts (FSAs), including the Traditional Medical Care Assistance Program, Dependent Care Assistance Program, and a potential Limited Medical Care Assistance Program, as well as Health Savings Accounts (HSAs). Key objectives include account management, customer service, claim adjudication and reimbursement, marketing, plan design, compliance, technological support, payment distribution, reporting, and payroll and funding interface. The resulting contract will have an initial term of five years, with up to five one-year renewals or one five-year renewal, not to exceed a total term of ten years. Proposals are due by September 13, 2022, and the contract is expected to be awarded shortly thereafter.

The RFP includes a 2% Business Enterprise Program (BEP) participation goal, but no Veteran Small Business (VSB) participation goal. The current incumbent provider is Optum Financial, Inc., who was awarded the previous contract. The State currently has approximately 17,825 FSA participants, with a potential enrollment of 108,000, and 1,100 HSA participants. The total potential contract value is estimated at $4,074,624 over the maximum 10-year term.