Healthcare benefits

The City of Scottsdale, located in Maricopa County, Arizona, is seeking comprehensive healthcare benefits proposals through RFP #26RFP005, targeting a complete overhaul of its employee benefits program. The procurement encompasses medical administration, pharmacy benefit management, stoploss administration, dental administration, employee assistance program (EAP) administration, and flexible spending and health savings account management for approximately 2,173 employees and 4,900 total members. Proposals are due electronically through the Bonfire Interactive procurement portal by 2:00 P.M. Arizona Local Time on September 25, 2025, with an initial five-year contract term and potential for two additional one-year extensions. Evaluation criteria will likely include competitive network discounts, flexible network access, cost-effective fee arrangements, integrated health and wellness tools, robust administrative capabilities, and comprehensive reporting. The city is particularly interested in innovative approaches, such as an onsite/near-site health clinic expected to be implemented in 2026 to drive member engagement and reduce total medical spending.

The solicitation does not explicitly outline specific set-aside designations, but the City of Scottsdale encourages participation from small and minority-owned businesses. Current benefits are administered by Cigna for medical services, ASI for flexible spending accounts, and HSA Central Bank for health savings accounts. Pricing requirements include per-employee-per-month (PEPM) pricing, stop-loss quotes, and three-year fee guarantees. The city requires vendors to comply with HIPAA regulations, as evidenced by the included Business Associate Agreement, and must demonstrate capabilities in handling protected health information. While specific budget ranges are not detailed, the monthly gross claims data from the exhibits suggest a significant annual healthcare expenditure, ranging from approximately $30 million to $43 million annually. Vendors must also provide comprehensive insurance documentation, adhere to immigration and labor regulations, and be prepared to integrate with existing city infrastructure and reporting systems.