Vision Insurance Plan Administration for CSC

The State of Michigan Civil Service Commission (MCSC) has issued RFP No. 180000001030 for Vision Insurance Plan Administration, seeking an Administrative Services Only (ASO) contractor to manage vision benefits for state employees and retirees. The procurement covers comprehensive vision insurance services for approximately 45,294 active employees, 55,734 retirees, 97,243 dependents, and 564 COBRA participants across jurisdictions including Grand Traverse County and Lansing City. The contract requires the selected vendor to provide full administrative services including claims processing, eligibility management, provider network administration, customer service, and detailed reporting functions. Evaluation criteria will weight technical factors at 100 points, with 60 points for Schedule A service specifications, 10 points for staffing, 15 points for project management and invoicing, and 15 points for company background and experience. The RFP was issued on February 7, 2018, with proposal questions due by February 22, 2018, and final proposals due by March 12, 2018 at 1:50 p.m. Eastern Time. The anticipated contract start date is May 10, 2018, with an implementation period through September 30, 2018, and full services beginning October 1, 2018, running through September 30, 2021.

The contractor must be a licensed Third-Party Administrator in Michigan or an insurance company licensed to do business in the state. The RFP indicates that qualified disabled veteran status will be considered during evaluation under MCL 18.1261(8). The contract requires comprehensive provider network coverage, with specific performance guarantees including 95% first call resolution, claims processing within 10 days, and financial error rates below 1%. While no specific incumbent vendor is mentioned, the state will utilize the VSP Choice Network and requires vendors to provide detailed monthly, quarterly, and annual reporting on claims, enrollment, and performance metrics. The current administrative fee is $0.50 Per Contract Per Month (PCPM), with monthly administrative fees in 2016-2017 ranging from approximately $49,150 to $49,622. The total membership base is 198,835 members across 101,592 contracts, with coverage categories including Contract Holder Only, Contract Holder & Spouse, Contract Holder & Children, and Full Family plans. Contractors must provide Pass-Through Pricing and maintain comprehensive data security standards including NIST, COBIT, and FISMA compliance.