Worker’s Compensation Third Party Administration

The Iowa Department of Administrative Services (DAS) has issued a Request for Proposal (RFP) for Third Party Administration (TPA) services for the state's self-funded workers' compensation program. The selected contractor will be responsible for providing a full range of claims administration services, including claim intake, investigation, reserving, medical management, and return-to-work coordination for over 80 participating state agencies and a population of over 70,000 active employees. The contractor must have a minimum of 15 years' experience serving large public sector clients. The initial contract term is 2 years, with up to 4 additional 1-year renewal options. The pricing model is a cost-plus fixed fee structure, with the cost elements covering staffing and salaries, and the fixed fee covering profit, overhead, and other expenses. The state does not currently utilize a broker and will base annual premiums on actuarial analysis rather than funding a reserve for future liability.

The incumbent TPA is Sedgwick, who has provided services since 2001. The state seeks to maintain quality service and program knowledge during the transition to a new TPA. The RFP does not specify any set-aside designations or restrictions on the types of organizations that can respond. The state has not provided an estimated award value or budget range for the contract. Interested parties must submit proposals by December 19, 2024.