ORS & EBD Healthcare Actuarial, Underwriting and Planning

The State of Michigan, through the Department of Technology, Management and Budget's Office of Retirement Services (ORS) and the Michigan Civil Service Commission's Employee Benefits Division (EBD), is seeking a comprehensive healthcare actuarial, underwriting, and consulting services contract. The Request for Proposal (RFP) No. 250000002730 aims to secure a contractor to provide expert services for managing and analyzing employee benefits programs across two distinct entities. For ORS, the contract will support the Michigan Public School Employees' Retirement System (MPSERS), covering approximately 130,163 medical contracts and 128,946 prescription drug contracts representing 198,539 individuals. For EBD, the contract will serve approximately 46,200 active employees, 55,700 retirees, and over 102,200 dependents across various health, dental, vision, life, and disability plans. Key deliverables include developing bid specifications, performing claims and program audits, conducting annual premium rate setting, strategic planning, vendor negotiations, and providing ongoing actuarial consulting. The RFP requires contractors to provide key personnel including a Senior Consultant, Pharmacy Consultant, Project Manager, and Actuary, each with specific qualifications. Key dates include an RFP issue date of July 28, 2025, an optional pre-proposal meeting on July 30, 2025, a bidder question deadline of August 11, 2025, and a proposal submission deadline of September 2, 2025, with anticipated contract start dates of January 1, 2026 for ORS and January 1, 2027 for EBD.

The RFP includes specific provisions for disadvantaged business enterprises, requiring that if subcontractors are used for more than 20% of deliverables, at least 20% of that subcontracted work must be awarded to Michigan-based Geographically Disadvantaged Business Enterprises (GDBE). The state also emphasizes Michigan economic impact, including potential job creation and tax revenue implications, with preferences for qualified disabled veteran-owned businesses. Contractors must maintain comprehensive insurance coverage, including Commercial General Liability ($1,000,000 per occurrence), Automobile Liability ($1,000,000 per accident), Privacy and Security Liability ($5,000,000 each occurrence), and Professional Liability ($3,000,000 each occurrence). While specific award values are not explicitly stated, the current gross benefit expenses provide insight into the contract's scale, with $2.09 billion spent on medical plans and $857 million on prescription drug plans for the twelve-month period ending December 31, 2024. The evaluation process will require bidders to score at least 80 points technically to have their pricing considered, with the State reserving the right to award based on best value rather than lowest price. Proposals will be submitted electronically through the SIGMA VSS system, with all submitted documents becoming public record immediately upon receipt.