Workers Compensation Insurance Administration Services

The State of Michigan, through the Michigan Office of the State Employer (OSE), is seeking proposals for a contractor to provide third-party claims administration for the state's Workers' Compensation program. The contract will cover the administration of workers compensation indemnity claims, medical-only claims, and record-only incidents for state employees and individuals covered under the state's plan. The selected contractor must be a licensed Third-Party Administrator (TPA) in Michigan or an insurance company licensed to do business in the state. Key requirements include timely and accurate claims processing, utilization of the state's existing Risk Management Information System (RMIS), financial management, reporting, legislative compliance, customer service, and assistance with Attorney General representation in litigated matters. The contract term is estimated to be effective from October 1, 2024 to March 31, 2029, with six optional one-year renewals. Proposals are due by March 29, 2024, and the contract is expected to commence on March 30, 2025 after an implementation period.

The RFP does not specify any set-aside designations or restrictions on the types of organizations that can respond. The incumbent contractor is Sedgwick Claims Management Services, Inc., and the state has not provided a list of participating bidders, as this is a competitive solicitation process. The total contract utilization is estimated at $90 million, but specific award values or budget ranges are not provided in the documents reviewed.