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  5. ›RFP 26-008 Alabama PEEHIP Medicare Part D EGWP PBM Services

Awarded contract·Retirement Systems of Alabama·Alabama

RFP 26-008 Alabama PEEHIP Medicare Part D EGWP PBM Services

Won by Humana Insurance Company$20MAwarded 9/1/2026Single Award
Contract source

Awarded vendors

  • Humana Insurance Company

Description

Alabama’s Public Education Employees’ Health Insurance Plan (PEEHIP) is seeking a fully‑insured Medicare Part D Employer Group Waiver Program (EGWP) pharmacy‑benefit‑manager (PBM) to serve its Medicare‑eligible retirees and dependents. The contract will cover comprehensive PBM functions—including member portals, clinical programs such as medication‑therapy‑management, claims adjudication, data reporting, network and formulary management, compliance with CMS and HIPAA, and on‑site member‑service support. The award will be a single‑award to Humana Insurance Company, with a one‑year base term beginning Jan 1 2027 and up to three optional one‑year extensions. The solicitation follows a competitive RFP process with intent‑to‑award notice issued Oct 15 2026. • Core services: enrollment, web/mobile portals, MTM, utilization management, claims processing, reporting, network pharmacy management, and compliance. • Contract term: 1 year (Jan 1 2027‑Jan 1 2028) plus up to three optional one‑year renewals. • Performance guarantees: $5 PMPY implementation, $10 PMPY ongoing, $15 PMPY overall satisfaction, all “at‑risk” amounts.

Attached files

Key dates

Questions due
7/13/2026
Bids closed
7/27/2026
Intent to award
9/1/2026
Awarded
9/1/2026
Starts
1/1/2027
Ends
1/1/2028Renews
Duration
1 year

Last updated

Details

Award type
Single Award
Procurement
Full and Open Competition
Solicitation
Request for Proposal
Industry
Healthcare and Medical Services
NAICS
524126
Solicitation №
RFP 26‑008

Contract value

$20,000,000

The contract will cover roughly 81,000 retirees and dependents. Typical fully‑insured Medicare Part D PBM costs range from $200‑$300 per member per year, plus additional implementation and performance‑guarantee fees. Assuming a mid‑point of $250 per member, the annual spend is about $20.3 million. Adding modest implementation and “at‑risk” fees (~$1‑2 million) yields a total contract value in the vicinity of $20‑22 million for the base year. If all three optional extensions are exercised, the cumulative value could approach $80‑85 million.

AI estimate from the award documents

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