HSA, FSA, & COBRA Administration Services

The City of Waxahachie, Texas, located in Ellis County, has issued a Request for Proposal (RFP) to procure Health Savings Account (HSA), Flexible Spending Account (FSA), and COBRA administration services for approximately 475 eligible employees. The procurement seeks qualified vendors to provide comprehensive administration of Health FSAs, Dependent Care FSAs, HSAs, and COBRA continuation coverage with an emphasis on user-friendly technology, flexible plan options, compliance expertise, and responsive customer support. Key deliverables include online enrollment systems, staff training, open enrollment support, electronic account statements, debit card management, participant communications, and compliance administration. Required qualifications include demonstrated financial stability, ability to meet delivery schedules, satisfactory performance records with at least five references preferably from similarly-sized municipalities, and appropriate licenses and certifications. The RFP evaluation will be conducted on a 100-point scale comprising cost and pricing (35 points), technical capability (25 points), implementation and account management (15 points), data security and compliance (15 points), reporting and integrations (5 points), and references (5 points). Critical deadlines include May 20, 2026, at 10:00 a.m. Central Time for submission of written questions, May 29, 2026, at 12:00 p.m. Central Time for proposal submissions through the OpenGov electronic bidding portal, and a public opening on May 29, 2026, at 12:05 p.m. via Teams audio meeting. The contract will be effective October 1, 2026, for an initial one-year term with four optional one-year renewals, for a potential five-year contract period, with automatic renewal unless either party provides ninety days' written cancellation notice.

The RFP does not specify any designated set-asides or restrictions on the types of organizations eligible to respond. The current incumbent vendor is Surency Life & Health Insurance Company, which has administered HSA services since October 1, 2022, and FSA and COBRA services since October 1, 2021, under a fee schedule that establishes charges of $3.25 per participant per month (PPPM) for Health FSA and Dependent Care FSA administration, $1.50 PPPM for HSA administration, $0.60 PPPM for COBRA administration, and a $50.00 flat administration service charge, with all rates guaranteed through September 30, 2026. Proposers must integrate with the City's existing plan design, which includes Health FSA contributions of $3,300 with $660 rollovers and a 90-day run-out period, Dependent Care FSA contributions of $5,000, and HSA contributions with annual employer contributions of $750 for individual coverage and $1,250 for family coverage. Pricing must be submitted net of commissions and exclusive of Texas Sales and Use Tax, with multi-year rate guarantees requested for all administrative fees. While specific budget ranges are not disclosed in the RFP documents, the award value will be determined by the number of participating employees, plan enrollment levels, and the vendor's proposed fee structure across the five-year contract period.