Self-Insured Employee Group Medical Plan Administration

The Texas A&M University System Office of Procurement and Business Services is requesting proposals for self-insured employee group medical plan administration services under RFP SBA-26-274, with proposals due March 16, 2026, at 2:00 p.m. Central Time. A VetHUB subcontracting plan with a 2% service-disabled veteran utilization goal is required.

The scope encompasses claims processing and management, network administration and credentialing, utilization review, disease management, monthly and quarterly reporting, eligibility processing via secure sFTP, COBRA administration, open enrollment meeting support across Texas locations, and actuarial reporting to the System's consulting actuary. The vendor must serve two distinct populations: the self-insured A&M Care Plan (a Preferred Provider Organization serving approximately 27,441 enrolled employees, retirees, and dependents) and the fully-insured 65 Plus Medicare Advantage Plan (serving approximately 8,610 Medicare-eligible retirees and dependents).

The initial contract term is three years — September 1, 2026, through August 31, 2029, for A&M Care Plans and January 1, 2027, through December 31, 2029, for the Medicare Advantage Plan — with potential renewal for up to three additional years subject to mutual written agreement. For the self-insured A&M Care Plans, the vendor must propose a guaranteed three-year administrative fee covering all services and claims run-off obligations. A performance incentive applies: vendors face a penalty equal to 100% of excess claims (subject to a maximum of 2% of target claims annually) if actual claims exceed 102% of target claims. For the 65 Plus Medicare Advantage Plan, negotiated premiums are due on or before July 1 preceding each calendar year with guaranteed maximum trend rates for contract years 2027–2029. All pharmaceutical rebates and revenues must be credited to the A&M System.

The incumbent is Blue Cross and Blue Shield of Texas. The A&M System is rebidding due to required six-year contract cycling; the existing contract expires August 31, 2026. The vendor must maintain a net worth of at least $250 million, demonstrate financial stability with audited financial statements for the past two years, hold a current Texas Department of Insurance license, and provide comprehensive network data. Presentations or interviews may be conducted on March 27, 2026, with respondent selection anticipated by April 1, 2026. Addendum No. 1, posted March 16, 2026, clarifies data requirements and submission procedures; submissions via email to soprocurement@tamus.edu are required with no deviations accepted.