Vision Insurance Plan Administration for CSC

The State of Michigan's Department of Technology, Management, and Budget issued Request for Proposal No. 180000001030 to procure vision insurance plan administration services for Civil Service Commission employees, retirees, and dependents. The RFP was posted on February 7, 2018, with a submission deadline of March 12, 2018, and the contract award was announced on May 1, 2018. The scope of services includes comprehensive vision insurance plan administration encompassing claims processing, network management, member services, and administrative support for the state's self-insured vision plan. Evaluation criteria consisted of four technical evaluation factors weighted to 100 total points, with a mandatory minimum threshold of 80 points required for pricing consideration. Key evaluation factors included administrative fees per contract per month, claims re-pricing estimates, and network provider disruption metrics. Four qualified vendors submitted proposals: Avesis Third Party Administrators, Inc.; Blue Cross Blue Shield of Michigan; Davis Vision, Inc.; and EyeMed Vision Care, LLC. The contract term is structured as three years with up to five optional one-year renewal periods.

EyeMed Vision Care, LLC was selected as the recommended awardee pending State Administrative Board approval, with a total contract value estimated at $29,000,000.00. EyeMed achieved a technical evaluation score of 88 points and demonstrated the most favorable combination of evaluation factors, including the lowest administrative fee of $0.11 per contract per month and the lowest claims re-pricing estimate, while maintaining minimal network disruption at 31.7 percent for providers and 34.1 percent for members. The three-year administrative fee component is estimated at $402,304.32, with a three-year claims estimate of $22,997,234.45 for the self-insured plan accounting for anticipated increased usage. Competing proposals included Davis Vision, which scored 91 points but submitted a higher overall cost proposal, Avesis, which scored 80 points and met the minimum threshold, and Blue Cross Blue Shield of Michigan, which scored 75 points and failed to meet minimum requirements. The procurement did not include noted set-aside designations or restrictions on bidder eligibility based on the available documentation.