Project Information

Bid Title

Spending Account, Dependent Care Spending Account, COBRA, and AB528 Administration for Plan Year 2027 (RFPQHSS2025.B1) Addendum No. 4

Issuing Agency

San Francisco Health Service System

Location

California

Published Date

Nov 13, 2025

Closing Date

Dec 2, 2025

Government Level

State & Local

Status

Closed

Original Source

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Bid Documents

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Project Description

Flexible Spending Account, Dependent Care Spending Account, COBRA, and AB528 Administration for Plan Year 2027 (RFPQHSS2025.B1)

SFHSS has issued a Request for Proposal (RFP) for a single vendor to administer Flexible Spending Account (FSA), Dependent Care Spending Account (DCSA), COBRA, and AB528 services for applicable employees of HSS participating employers.

• RFP for Flexible Spending Account, COBRA, and AB528 Administration PY2027 (RFPQHSS2025.B1) - Updated 11/12/2025
• Mutual Confidentiality and Nondisclosure Agreement (MCA)
• Notice of Intent to Bid
• Addendum No. 1 (RFPQHSS2025.B1) dated September 30, 2025
• Addendum No. 2 (RFPQHSS2025.B1) dated October 2, 2025
• Addendum No. 3 (RFPQHSS2025.B1) dated October 9, 2025
• Addendum No. 4 (RFPQHSS2025.B1) dated November 12, 2025

Key Dates:

• RFP Announced: August 14, 2025
• RFP Issued: September 16, 2025
• Deadline for Intent to Bid: October 3, 2025 (12:00PM PT)
• Deadline for RFP Questions: October 30, 2025 (12:00PM PT)
• Responses to Questions Posted: November 14, 2025
• Deadline for Proposals: December 2, 2025 (12:00PM PT)
• Requests for Clarification: December 3-12, 2025
• Notification of Oral Interviews: December 15-19, 2025
• Oral Interviews (Virtual): January 12-16, 2026
• Health Service Board Meeting Announcement: March 2026

Please see these webpages for more information on in-scope employee benefits:

• Flexible Spending Accounts (FSA)
• August 14, 2025 Regular Meeting of the Health Service Board (SFHSS Annual Benefits Contract Assessment and Blackout Notice through June 2026– link to https://sfhss.org/board-meeting/2025-08-14t200000 )

Attachment Preview

UDPATED 11/12/2025

REQUEST FOR PROPOSALS (RFP) FOR

Flexible Spending Account, COBRA, and AB528 Administration

for Plan Year 2027

RFPQHSS2025.B1

CONTACT: patrick.chang@sfgov.org; cc: william.kudenov@sfgov.org and

michael.visconti@sfgov.org

Purpose of this RFP: SFHSS seeks one (1) vendor to serve as the Third-Party

Administrator (TPA) for eligible employees from the four (4) participating employers (see

RFP Section 1.2.5.) of the San Francisco Health Service System (SFHSS) for the

following:

▪ Healthcare Flexible Spending Account (HCFSA) and Dependent Care Spending

Account (DCFSA) (also referred to collectively as “FSA”),

▪ Continuation of Health Coverage (COBRA),1 and

▪ California Assembly Bill 528 Continuation Coverage (AB528).2

The City seeks proposals from experienced and qualified administrators of FSA, COBRA

and AB528 services for large (15,000 or more employees) public sector employers.

Est. Eligible Population (as of 8/1/2025):

▪ FSA: 36,100

▪ COBRA: 80,400

▪ AB528: 4,200

FSA Enrolled Population (as of

9/9/2025):

▪ HCFSA: 9,637

▪ DCFSA: 1,815

1 https://www.dol.gov/general/topic/health-plans/cobra

2 California Education Code §§ 7000–7008; see http://www.leginfo.ca.gov/pub/97-98/bill/asm/ab_0501-

0550/ab_528_bill_19980630_chaptered.html

RFP for FSA, COBRA, and AB528 Benefits Administration (RFPQHSS2025.B1)

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Effective Dates of Services:

▪ COBRA Administrative Services: No later than JanuaryJuly 1, 20262027

▪ AB528 Administrative Services: July 1, 2026

▪ Flexible Spending Account (FSA) Administrative Services: January 1, 2027

Anticipated Initial Term of Agreement: July 1, 2026 – December 31, 2031, with options

to extend the agreement up to a maximum term of ten (10) years.

Implementation COBRA/AB528: March – October December 2026 (No later than

January July 1, 2026 2027 go-live)

Implementation HCFSA/DCFSA: March 2026 – March 2027 (January 1, 2027 go-live)

RFP Questions and Communications: To ensure fair and equal access to RFP

information, all communications must be communicated to SFHSS via email to

patrick.chang@sfgov.org; cc: william.kudenov@sfgov.org and

michael.visconti@sfgov.org.

Unauthorized communications may result in disqualification and rejection of Proposal.

Questions must be emailed by the Deadline for RFP Questions. No questions will be

accepted after the Deadline for RFP Questions with the exception of questions regarding

Approved City Supplier status or as determined by SFHSS in writing by an addendum to

this RFP.

Requirement to be an Approved Supplier: All Respondents to this RFP must certify to

become an Approved Supplier by January 31, 2026 or within ten (10) days of award or

selection by SFHSS, whichever is later. This includes completing an Equal Benefits

Declaration.3

Respondents to this RFP are strongly recommended to review the Approved Supplier

and Equal Benefits Program prior to bidding, as this process may take several weeks:

https://sfcitypartner.sfgov.org/pages/index.aspx.

3 More information on the City’s Equal Benefits Program is available at https://www.sf.gov/equal-benefits-program.

RFP for FSA, COBRA, and AB528 Benefits Administration (RFPQHSS2025.B1)

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Schedule – Key Dates and Deadlines

▪ RFP Announced

▪ RFP Issued

▪ Deadline for Intent to Bid (Sec. 3.3)

▪ Deadline for RFP Questions

▪ Responses to Questions Posted5

▪ Deadline for Proposals (Sec. 3.4)

▪ Minimum Qualifications Review

▪ Requests for Clarification

▪ Notification of Oral Interviews

▪ Oral Interviews6 (Virtual)

▪ Health Service Board Meeting

Announcement

▪ COBRA/AB528 Implementation Period

o COBRA/AB528 Go-live

▪ FSA Implementation Period

o FSA Go-Live/Transition

▪ Open Enrollment (est.)

▪ HCFSA Rollover

August 14, 20254

September 16, 2025

October 3, 2025 (12:00PM PT)

October 30, 2025 (12:00PM PT)

November 14, 2025

December 2, 2025 (12:00PM PT)

December 2 – 5, 2025

December 3 – 12, 2025

December 15-19, 2025

January 12-16, 2026

February – March 2026

March – December 2026

No later than January 1, 20262027

March 2026 – March 2027

January 1, 2027

October 2026

December 31, 2026 → January 1, 2027

The remainder of this page intentionally left blank.

4 Blackout Notice through June 2026, August 14, 2025 HSB Regular Board Meeting, available at https://sfhss.org/board-

meeting/2025-08-14t200000

5 Questions will be answered and posted on a rolling basis to https://sfhss.org/RFPs. Submitters will be notified via email

at the time of posting.

6 Oral Interviews may be conducted in person at the SFHSS Offices located at 1145 Market Street, San Francisco,

California 94103 (see Section 4.3 below).

RFP for FSA, COBRA, and AB528 Benefits Administration (RFPQHSS2025.B1)

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1. INTRODUCTION

1.1 Overview.

The San Francisco Health Service System (SFHSS) seeks proposals from qualified firms with

demonstrated experience in healthcare (HCFSA) and dependent care flexible spending

account (DCFSA) (collectively “FSA”), COBRA and AB528 administration (collectively “the

Services”) for large (15,000+ eligible employees) public sector employers. COBRA and

AB528 services would begin effective July 1, 2026, following a successful transition period

from the incumbent provider, P&A Group. FSA services must begin January 1, 2027,

following a successful transition period from P&A Group and a successful Open Enrollment

period (October 2026, exact dates TBD by HSS by July 1, 2026 but routinely cover four

consecutive weeks in October or the full month). The selected vendor is expected to have

experience working with large (15,000+ eligible employees) public sector employers with

diverse employee populations.7,8

Benefits administration for the City will include all facets of FSA, COBRA and AB528

administration, including but not limited to eligibility, compliance, regulatory and legislative

monitoring, customer service, employee-facing communications, account management,

and both regular and ad hoc reporting to SFHSS.

1.2 The San Francisco Health Service System (SFHSS).

1.2.1 The San Francisco Health Service System. SFHSS executes all

process phases related to benefit operations and administration of non-pension benefits

(including health, dental and vision) for over 139,000 individuals pursuant to the City and

County of San Francisco Charter sections 12.200-12.203 and A8.420-A8.432, and San

Francisco Administrative Code sections 16.700-16.703. These individuals include both

eligible active and retired employees from the Health Service System’s four participating

employer groups – City and County of San Francisco, San Francisco Unified School District,

San Francisco Community College District, and San Francisco Superior Court – and their

eligible dependents (collectively, “Members”).

SFHSS is dedicated to providing outstanding high-quality and sustainable employee

benefits to preserve and enhance the well-being of our Members, while adhering to the

highest standards of service and support. For additional information, please reference the

SFHSS Strategic Plan for 2023-2025 at https://sfhss.org/resource/sfhss-strategic-plan-

7 The current “SFHSS Demographics Report” is available at https://data.sfgov.org/stories/s/ppyt-2mqw.

8The 2024 SFHSS Demographics Report is available at https://sfhss.org/resource/february-8-2024-sfhss-2024-

demographic-report/download.

RFP for FSA, COBRA, and AB528 Benefits Administration (RFPQHSS2025.B1)

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2023-2025. Please be advised that SFHSS is the process of drafting an interim strategic plan

for calendar year (CY) 2026 and a new strategic plan for 2027-2029.

1.2.2 SFHSS Health Service Board. The Health Service Board (HSB) is the

governing and policy-making body of the San Francisco Health Service System (SFHSS). The

HSB supports SFHSS's mission to preserve and improve sustainable, quality health benefits

and to enhance the well-being of members and their families. HSB duties and

responsibilities are detailed on the SFHSS website at https://sfhss.org/health-service-

board.

Throughout the year, SFHSS reports to the HSB on the status of benefits and contracts under

SFHSS’ jurisdiction. At the Regular Meeting of the HSB on August 14, 2025, SFHSS presented

for discussion its intent to issue a competitive bid for a FSA, COBRA, and AB528 third-party

administrator. The agenda, presentation materials, transcript and video recording of this

meeting are available at https://sfhss.org/board-meeting/2025-08-14t200000.

1.2.3 City And County of San Francisco. SFHSS is one of approximately 130

departments, commissions and other miscellaneous agencies within the City. The City is

organized as a mayor-council system with an executive mayor, elected by the voting public,

and a separately elected legislative city council, the San Francisco Board of Supervisors

(BoS). Certain department heads are elected by the voters, e.g., City Attorney, and

Treasurer/Tax Collector; others are appointed by the Mayor, and then confirmed by the

Board of Supervisors, e.g., Controller; while others, including the Executive Director of the

San Francisco Health Service System, are appointed by the HSB which is the commission

assigned with the authority and oversight of that department and its functions.

1.2.4 SFHSS Annual Renewal Process. Each year, SFHSS conducts an

annual renewal process for all benefit contracts under the Board’s purview (see Board

Polices and Reference Documents, available at https://sfhss.org/board-policies-and-

reference-documents). This process creates consistency in how SFHSS and the HSB

communicate and validate our expectations from our plan partners and plan administrators

for the upcoming plan year (beginning January 1st) and the Open Enrollment period (a fixed

annual enrollment period held in October of the prior year). The annual renewal process also

allows SFHSS to adjust benefits in response to new regulatory requirements, prior year(s)

plan experience, City policies, benefit design strategies developed by SFHSS and our

partners, Health Service Board policies, and legislative changes.

The Selected Respondent, as a result of this RFP, agrees to be an active participant in the

SFHSS annual renewal process each year, including timely delivery of renewal responses,

materials and follow-ups to requests, and well-prepared meetings and materials for SFHSS,

the Health Service Board, the SFHSS actuary and consultants, and City/employee

stakeholders (https://sfhss.org/board-annual-rates-and-benefits-cycle). See Section 3.2.1

(Minimum Qualifications), subsection V.

RFP for FSA, COBRA, and AB528 Benefits Administration (RFPQHSS2025.B1)

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Commodity Codes

• NAICS 541611Administrative Management and General Management Consulting Services

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