MPSERS Dental Benefit Plan Administration

The State of Michigan Department of Technology, Management and Budget, Office of Retirement Services, is procuring comprehensive administration services for the Michigan Public School Employees' Retirement System (MPSERS) dental benefit plan through Request for Proposal No. 200000001290. The procurement encompasses all-inclusive administration of dental benefits for approximately 261,000 members, including retirees, beneficiaries, COBRA participants, and their dependents of a self-insured plan with an annual gross claim payment volume of approximately $81.7 million. Required services include plan design administration, member support through dedicated call centers operating Monday through Friday from 8:30 a.m. to 5:00 p.m. EST (preferably located in Michigan), web-based support with secure member portals, member communication materials, enrollment and eligibility management, technology infrastructure, financial administration, claims processing, and provider network management. The contractor must commence all services without interruption on January 1, 2021, following an implementation period and must provide a $60,000 implementation credit to offset vendor change expenses. Evaluation criteria include technical requirements weighted at 200 points covering Schedule A requirements (staffing, project management, transition), vendor background and experience, and proposal quality, with proposals requiring a minimum of 160 points to advance to price evaluation. Service Level Agreements establish measurable performance standards across 17 distinct categories with monthly penalties ranging from $4,000 to $25,000 for non-compliance. The proposal deadline was April 6, 2020, at 3:00 p.m. Eastern, with a question submission deadline of March 13, 2020, and answers posted by March 19, 2020. The anticipated contract effective date is July 8, 2020, with the contract term extending through December 31, 2024, with options for up to four additional one-year renewal periods.

The procurement imposes mandatory minimum requirements including duplication of the current plan design and possession of a Michigan Telehealth Provider Administration (TPA) license or equivalent statutory authorization to provide administrative services, with the contractor alternatively qualified as an insurance company licensed to do business in Michigan or otherwise authorized by statute. While the RFP documents do not explicitly identify set-aside designations or restrictions based on disadvantaged enterprise classifications, the Vendor Questions Worksheet requires bidders to provide qualified disabled veteran business status certifications and responses addressing Michigan economic impact considerations. No incumbent vendor or current contractor is identified in the procurement documents; however, Schedule S provides 2018 and 2019 enrollment and claims data indicating membership stability between approximately 257,000 and 262,000 members with monthly paid claims ranging from $5.7 million to $8.4 million, which may serve as baseline metrics for transition planning. The contractor must integrate with existing infrastructure including EDI 834 Health Plan Enrollment and Maintenance transaction files utilizing X12 005010X220A1 standards, generic medical claim layouts with 132 detail fields, and enrollment data systems. Required qualifications include annual SSAE 16 SOC 2 Type 2 audit certification, HIPAA compliance capabilities, Commercial General Liability insurance of $1,000,000 minimum per occurrence, Professional Liability insurance of $3,000,000 minimum, and Cyber Liability insurance of $1,000,000 minimum. The contract value is not explicitly stated in the RFP documents; however, contracts valued at $500,000 or greater require State Administrative Board approval, and the annual gross claim volume of $81.7 million and membership base of approximately 261,000 members suggest a substantial contract value exceeding procurement thresholds.