Vision Insurance Administration Services for MPSERS

The State of Michigan, through the Michigan Public School Employees' Retirement System (MPSERS) and the Department of Technology Management and Budget, is seeking Vision Insurance Administration Services for a comprehensive vision benefit program. The Request for Proposal (RFP No. 250000002307) solicits proposals for both self-funded and fully-insured vision insurance administration services covering approximately 260,000 members, including retirees, beneficiaries, and COBRA participants. The contract will commence with an implementation period from April 9, 2026, to December 31, 2026, with full service beginning January 1, 2027, and running through December 31, 2030. Bidders must be a licensed Third-Party Administrator in Michigan or an insurance company licensed to do business in the state. The evaluation process will involve a technical review weighted across areas including staffing, project management, and prior experience, with proposals needing to score 80 or more technical points to proceed to pricing evaluation. Proposal submissions are due by October 7, 2025, at 1:00 p.m. Eastern Time, with the state reserving the right to consider factors beyond pricing, such as economic impact, job creation, and tax revenue implications.

The procurement does not explicitly mention specific set-aside designations for disadvantaged enterprises. Bidders must provide comprehensive vision care services with specific requirements including maintaining a provider network, processing claims, providing member support, and ensuring financial transparency. The contract allows for an estimated 2% annual membership growth and requires detailed reporting, including monthly service availability tracking and compliance with HIPAA and data security regulations. While no specific incumbent is mentioned, the contract will replace an existing Contract 071B7700186. The pricing structure is complex, with options for self-funded, fully-insured, or combined proposals, and involves administration fees, premiums, and claims costs for approximately 170,090 to 171,369 contracts. Though no exact budget range is specified, the Schedule O Claims Repricing worksheet indicates estimated annual costs of approximately -$2,828,680, with per-contract monthly costs of -$1.40 and per-member monthly costs of -$0.90. Contractors must demonstrate financial strength and comply with extensive data security, privacy, and service level requirements outlined in multiple contract schedules.