Medicare Part D and Retiree Subsidy Services

The state of Arkansas is seeking proposals for Medicare Part D and Retiree Subsidy Services through an Invitation for Bid (IFB). The contractor will be responsible for providing administrative services related to the Retiree Drug Subsidy (RDS) program, including reopening prior year RDS applications, registering as the payment requestor, and submitting subsidy payment requests every 30 days. The selected vendor will also be required to perform monthly reviews of claim data elements and be subject to random monthly audits by the Arkansas State Police (ASP). The initial contract term is one year with up to six one-year renewal options. Prospective contractors must have at least five years of Medicare Part D Retiree Subsidy experience and must submit proposals by March 16, 2022, addressing the implementation fee and contingency fee based on the estimated annual Part D subsidy recovery. The current incumbent provider is Part D Advisors, and the current pharmacy benefit manager is MedImpact.

The IFB does not allow for tiered contingency fee percentages or alternative security review levels in lieu of a SOC 1, Type II report. ASP will approve the retiree listing provided by the contractor, and the current incumbent will be responsible for the 2021 reconciliation. The IFB does not specify any set-aside requirements or budget ranges, but the Contract and Grant Disclosure Form indicates that the contractor and any subcontractors must disclose any current or former positions held by related parties with the Arkansas government.