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State of Tennessee·Tennessee

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

Closes 12/18/2026$200M – $500MRequest for Proposal
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Description

The State of Tennessee is seeking up to two qualified third‑party administrators (TPAs) to provide comprehensive administration of three self‑funded public‑sector health plans covering roughly 306,000 members (employees, retirees, dependents). The scope includes provider‑network management (efficient and optional broad networks), utilization management, claims adjudication, 24/7 bilingual member‑service call‑center, member communications, web and mobile portal support, detailed reporting, quality‑assurance initiatives, and coordination with state‑selected pharmacy‑benefit and wellness contractors. Performance guarantees mandate network‑access standards (≥95 % of members meeting distance criteria), implementation milestones (Go‑Live 1 Jan 2028), NCQA accreditation, and a medical‑trend ceiling of ≤ 4 % annual increase, with substantial liquidated‑damage penalties for non‑compliance. The contract is valued on a per‑employee‑per‑month (PEPM) basis over a 87‑month term (including 9‑month implementation, 60‑month service, and 18‑month claims run‑out).

Attached files

Contact

Heather Pease(Procurement & Contracts Director)

[email protected]

(615) 253-1652

Key dates

Opened
9/15/2026
Questions due
10/5/2026
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
524114
Solicitation №
31786-00190

Budget estimate

$200,000,000 – $500,000,000

No explicit dollar amounts are disclosed, but the contract covers ~306,000 members with PEPM fees for multiple service modules over five fiscal years (2028‑2032). Assuming a modest PEPM rate of $20‑$30 for the combined services, annual revenues would range from $73 million to $110 million, yielding a total contract value of roughly $350 million to $550 million over the full 87‑month term. The estimate accounts for the size of the covered population, the breadth of services (claims, UM, call‑center, reporting, etc.), and typical market rates for large‑scale TPA engagements.

AI estimate from the solicitation

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