SD State Employee Health Plan Actuary and Benefits Consultant

The South Dakota Bureau of Human Resources and Administration is seeking a health plan actuary and benefits consultant for the South Dakota State Employee Health Plan (SDSEHP) through Request for Proposal #24RFP10766. The procurement targets a comprehensive service provider to deliver actuarial services, plan design consulting, and strategic health plan management for approximately 26,700 state employee members. Required services include claims projections, reserve level determinations, actuarial certifications, health plan strategy development, and managing approximately 600,000 annual claims across medical and pharmacy services. The selected vendor will be responsible for consulting on four existing health plan options, including zero deductible, low deductible, and two high deductible plans with HSA options currently administered by Wellmark Blue Cross Blue Shield. Proposals are due by February 21, 2025, at 5:00 PM CDT, with potential oral presentations scheduled between March 24-April 11, 2025, and an anticipated award decision and contract negotiation set for May 9, 2025. The evaluation will use a 1,000-point scale, with cost worth 225 points, specialized expertise worth 250 points, and various technical factors comprising the remaining points.

The solicitation does not explicitly outline specific set-aside designations or restrictions for disadvantaged enterprises. The incumbent vendor is Marsh & McLennan Agency, LLC, which has held the contract since April 2020. The current contract structure involves a flat annual fee, with recent amounts of $460,000 for FY22-23 and $462,474.11 for FY24. The proposed contract term is five years (July 1, 2025 through June 30, 2030) with two optional one-year extensions. The pricing structure requires vendors to submit an annual retainer with a not-to-exceed maximum for core services and hourly rates for additional services. The state explicitly prohibits brokerage commissions or indirect compensation methods. The existing technology infrastructure involves Wellmark Blue Cross Blue Shield as the third-party administrator, and the successful vendor must integrate with this current system. While no specific total contract value is stated, the annual fee structure and comprehensive service requirements suggest a significant engagement with potential total contract value exceeding $2.3 million over the initial five-year term.