Vision Insurance Administration Services for MPSERS

The State of Michigan, specifically the Michigan Public School Employees' Retirement System (MPSERS), is seeking Vision Insurance Administration Services through Request for Proposal (RFP) No. 250000002307. The procurement allows for both self-funded and fully-insured proposals to administer post-employment vision benefit coverage for approximately 260,000 members, including retirees, beneficiaries, COBRA participants, and dependents. Bidders must be licensed as a Third Party Administrator in Michigan or a licensed insurance company, with a requirement to provide comprehensive vision services such as enrollment, claims processing, member support, and provider network management. The RFP mandates contractors maintain the lowest cost-per-service, highest provider discounts, and comply with HIPAA regulations. Key evaluation criteria include technical capabilities, staffing, project management, and prior experience, with proposals needing to score at least 80 technical points to have pricing considered. The RFP was issued on September 3, 2025, with proposals due by 1:00 p.m. Eastern on October 7, 2025. The contract is set to be effective from April 9, 2026, with full service implementation on January 1, 2027, and a potential contract duration through December 31, 2030.

The RFP does not specify specific set-aside designations for disadvantaged enterprises. Contractors must meet extensive insurance requirements, including maintaining multiple types of coverage with minimum limits such as $1-2 million in Commercial General Liability, $1 million in Automobile Liability, and $3 million in Professional Liability/Errors and Omissions. Detailed technical requirements include maintaining FedRAMP authorization, implementing multi-factor authentication, ensuring data encryption, and supporting identity federation. While no specific incumbent vendor is mentioned, the contract requires extensive technical integration capabilities, including robust software systems for Plan Sponsor Portal, Member Portal, Claim Processing, and comprehensive data management. Though no precise award value is specified, the RFP suggests the contract will manage approximately 170,090 to 171,369 contracts annually, with potential for significant financial complexity given the self-funded and fully-insured proposal options. Contractors must demonstrate financial strength and the ability to handle a large-scale vision insurance administration program for a retirement system.