ORS & EBD Healthcare Actuarial, Underwriting and Planning

The State of Michigan, specifically the Department of Technology, Management and Budget (DTMB), is seeking comprehensive healthcare consulting services through Request for Proposal (RFP) No. 250000002730 for two separate entities: the Office of Retirement Services (ORS) and the Michigan Civil Service Commission's Employee Benefits Division (EBD). The procurement covers healthcare and benefit auditing, actuarial, and consulting services, with separate solicitations for ORS and EBD that may or may not be awarded to the same bidder. Key deliverables include developing bid specifications for medical, prescription drug, dental, vision, and HMO contracts, performing claims and program audits, conducting annual premium rate setting, and providing ongoing actuarial consulting. The technical proposal will be evaluated based on four criteria: Statement of Work, Staffing, Project Management, and Vendor Questions Worksheet, with proposals requiring a minimum score of 80 points to have pricing evaluated. An optional pre-proposal meeting is scheduled for July 30, 2025, with the proposal deadline set for September 2, 2025. The anticipated contract start dates are January 1, 2026, for ORS and January 1, 2027, for EBD, with a comprehensive scope covering approximately 130,163 hospital/medical contracts and 46,200 active state employees across various health plans.

The state encourages participation from qualified disabled veteran-owned businesses and requires that if subcontractors are used, at least 20% of subcontracted work must be awarded to Michigan-based Geographically Disadvantaged Business Enterprises. Insurance requirements are extensive, mandating coverage including Commercial General Liability ($1,000,000), Automobile Liability ($1,000,000), Workers' Compensation, Privacy and Security Liability ($5,000,000), and Professional Liability ($3,000,000). The current healthcare plans are self-funded, with medical administered by Blue Cross Blue Shield of Michigan, prescription drugs by Optum Rx, dental by Delta Dental, and vision by EyeMed. While specific contract values are not explicitly stated, the gross benefit expenses for the twelve-month period ending December 31, 2024, were $2.09 billion for medical and $857 million for prescription drug coverage, indicating a significant potential contract value. The state will consider factors such as Michigan economic impact, labor compliance, and overall value when making award recommendations, with the potential for up to five additional one-year renewal periods at the state's discretion.