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State of Tennessee·Tennessee

Third Party Administrator Services for the State's Public Sector Health Plans

Closes 12/18/2026$30M – $80MRequest for Proposal
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Description

The State of Tennessee is seeking up to two qualified Third‑Party Administrators (TPAs) to provide full‑service administration of its three self‑funded public‑sector health plans (State, Local‑Education, Local‑Government), covering roughly 306,000 members. The contract will run for 87 months (9 months implementation, 60 months service delivery, 18 months claim‑run‑out) with a mandated go‑live on 1 Jan 2028. Scope includes network development and management (required Efficient PPO network and optional Broad network), utilization management, claims adjudication and payment, 24/7 member call‑center, plan communications, reporting & analytics, sub‑rogation, fraud‑abuse detection, quality‑improvement initiatives, and coordination with State‑selected carve‑outs (pharmacy, behavioral health, wellness). The State will evaluate technical capability (60 points), cost (35 points), and qualifications (5 points), and may award up to two contracts. Performance guarantees and liquidated‑damage provisions cover implementation milestones, network‑access standards, reporting timeliness, and NCQA accreditation. • Provide and manage an Efficient PPO network meeting 95 % geographic‑access standards (mandatory) and an optional Broad network. • Deliver full TPA functions: claims processing, utilization management, member services, reporting, sub‑rogation, and value‑based care initiatives. • Meet strict performance guarantees (e.g., $75 k liquidated‑damage for network‑access failures, $1 000‑$25 k per day for implementation delays). • Submit technical and cost proposals by 18 Dec 2026; contract effective 1 Apr 2027 with a 1 Jan 2028 go‑live date.

Attached files

Contact

Heather Pease(Director of Procurement & Contracts)

[email protected]

(615) 917-4165

Key dates

Opened
9/15/2026
Questions due
11/13/2026
Pre-bid meeting
9/21/2026
Closes
12/18/2026
Projected award
2/25/2027
Duration
87 months

Last updated

Details

Type
Request for Proposal
Industry
Healthcare and Medical Services
NAICS
541618
Solicitation №
31786-00190

Budget estimate

$30,000,000 – $80,000,000

Although the RFP does not disclose exact PEPM fee rates, a typical TPA contract for a 300 K‑member public‑sector plan ranges from $90 to $150 per member per month. Over the 5‑year service period (2028‑2032) this translates to roughly $30 million to $80 million in total payments, plus additional performance‑based adjustments and sub‑rogation recoveries. The estimate assumes mid‑range PEPM fees and accounts for the 87‑month contract length, implementation costs, and potential at‑risk payments. Factors influencing the final amount include the chosen network option (Efficient vs. Broad), negotiated PEPM rates, and any medical‑trend guarantee penalties.

AI estimate from the solicitation

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