RFI - Health & Welfare Benefit Shared Services

The Utah System of Higher Education (USHE) has issued a Request for Information (RFI #USHE12172025) to explore potential consolidation of health and welfare benefit plans across its 17 member institutions. The procurement seeks vendor input and strategic recommendations for developing a more efficient and cost-effective approach to employee benefits administration. The RFI targets comprehensive solutions that could reduce administrative costs, improve benefit competitiveness, and potentially create shared service models for health and welfare benefits. Key objectives include identifying best practices for consolidating member-institution benefit plans, exploring administrative models, and developing strategies to minimize employee disruption during potential transitions. Specific vendor responses are expected to address eight core questions related to consolidation strategies, benefit opportunities, employee impact mitigation, and administrative efficiency. Written questions are due by January 16, 2026, at 11:30 P.M. MST, with full vendor responses required by January 31, 2026, at 11:30 P.M. MST, submitted through a designated online platform.

The RFI does not constitute a formal procurement process and will not directly result in contract awards, making it accessible to a broad range of potential vendors without specific set-aside designations. The feasibility study accompanying the RFI indicates potential savings ranging from 2.5% to 10.5% of total health and welfare expenditures, depending on the consolidation approach selected. Current benefit arrangements involve multiple carriers including PEHP, Regence, Select Health, and UMR, with 39 existing plan designs covering approximately 76,221 lives across diverse institutional settings. Potential consolidation models include vendor collaboration, stop-loss pooling, state risk pool integration, and establishing a dedicated USHE risk pool with institution-specific or pooled rates. The study notes that implementation may require legislative amendments to Utah Code 49-20-202 to accommodate more flexible risk pool structures. While no specific budget is explicitly stated, the analysis suggests significant potential for administrative and cost efficiencies through strategic benefit plan consolidation.