Project Information

Bid Title

RFP 26-007 PEEHIP Ad Hoc Health Insurance Consulting for Fiscal Years 2027 – 2031

Issuing Agency

The Retirement Systems of Alabama

Location

Alabama

Published Date

May 5, 2026

Closing Date

Jun 18, 2026

Government Level

State & Local

Status

Closed

Original Source

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Bid Documents

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Project Description

RFP 26-007 PEEHIP Ad Hoc Health Insurance Consulting for Fiscal Years 2027 – 2031

This Request for Proposals (RFP) solicits vendor proposals for ad hoc health benefits consulting services to support the Public Education Employees' Health Insurance Plan (PEEHIP) on an as-needed basis for fiscal years 2027 through 2031. PEEHIP’s fiscal year begins October 1 and ends September 30. Services to be provided under this RFP are expected to begin October 1, 2026. Upon the award of this RFP, the PEEHIP will work with the Vendor(s) to further develop the scope of the contract.

RFP 26-007

RFP 26-007 Questions and Answers

Contact:
Taylor Benefield
Taylor.Benefield@rsa-al.gov

Deadline for receipt of questions:
May 1, 2026, @ 2:00 p.m.

Proposals Due:
June 18, 2026, 2:00 p.m. CST

Attachment Preview

REQUEST FOR PROPOSALS

FOR

AD HOC HEALTH BENEFITS CONSULTING

FOR

THE

PUBLIC EDUCATION EMPLOYEES’ HEALTH INSURANCE

PLAN

FOR

FISCAL YEARS

2027 through 2031

RFP 26-007

Issue Date: April 17, 2026

This RFP Contains Information Under the Following Headings:

SECTION I

General Information for the Bidder

A. Purpose

B. Background

C. Description of PEEHIP’s Management

D. Operations

E. Funding

F.

Other Information

G. Proposal Opening

H. Key Dates

I.

Scope of Services and Submission Requirements

J.

Payment Schedule

K. Selection of Firm(s)

L. Economy of Preparation

M. News Releases

N. Addenda to the RFP

O. Contact Point

P.

Preferred Qualifications

Q. Agents

SECTION II

Information Required from Bidders

A. Qualifications of the Firm

B. Cost and Price Analysis

SECTION III

Criteria for Evaluation

A. General

B. PEEHIP’s Rights

C. Termination

D. Cost and Price Analysis

E. Proposal Evaluation Form

SECTION IV

Additional Documents

A. State of Alabama Disclosure Statement (Pursuant to the Code of Alabama 1975, Title 41,

Chapter 16, Article 3B)

B. Sample PEEHIP State Contract

C. Immigration Compliance Certificate

D. Proposer Profile Form

E. Proposer References Form

F. PEEHIP Statement on HIPAA Compliance Documentation

G. Sample Business Associate Agreement

H. IRS Form W-9

I.

Non-Disclosure Agreement

J.

IT Security Questionnaire

K. Certification of Bidder or Proposer

SECTION I

General Information for the Bidder

A. Purpose:

This Request for Proposals (RFP) solicits vendor proposals for ad hoc health benefits consulting services to support

the Public Education Employees' Health Insurance Plan (PEEHIP) on an as-needed basis for fiscal years 2027

through 2031. PEEHIP’s fiscal year begins October 1 and ends September 30. Services to be provided under this

RFP are expected to begin October 1, 2026. Upon the award of this RFP, the PEEHIP will work with the Vendor(s)

to further develop the scope of the contract.

B. Background:

The PEEHIP provides hospital medical health insurance benefits for all full-time employees and certain part-time

employees of the Alabama public educational institutions, which provide instruction at any combination of grades

K-14. These insurance benefits are also available to retired employees with a portion of the retiree's cost paid

through the employer premium for active employees. Coverage is also offered to eligible dependents.

Members have the following choices for health insurance coverage as follows:

• Hospital medical administered by Blue Cross and Blue Shield of Alabama – Actives and Non-Medicare

eligible retirees and eligible dependents.

• Prescription Drug coverage administered by Express Scripts – Actives and Non-Medicare eligible retirees

and eligible dependents.

• Health Maintenance Organization – Viva – Actives and Non-Medicare eligible retirees.

• Medicare Advantage Prescription Drug Plan (MAPDP) – Humana – Medicare eligible retirees and

Medicare eligible dependents of retirees

• Optional Coverage administered by Southland Benefit Solutions, LLC, – consisting of Dental, Hospital

Indemnity, Vision, and Cancer.

• Supplemental Hospital Medical administered by Blue Cross and Blue Shield of Alabama—supplemental

coverage for Actives and Non-Medicare eligible retirees

Members electing one of the hospital medical plans must pay a small amount each month for single coverage plus

an additional amount if the member elects family coverage. Additionally, members may select the optional coverage

plans or supplemental plan in lieu of the hospital medical coverage. Members electing hospital medical coverage

may also elect to pay an additional amount to acquire one or more of the optional plans.

C. Description of PEEHIP’s Management:

The PEEHIP’s self-insurance plan and administrative responsibility for this fund is with the Retirement Systems of

Alabama (RSA) administrative staff. The Chief Executive Officer (CEO) of the Teachers’ Retirement System (TRS)

also serves as CEO for the PEEHIP. All matters relating to the PEEHIP have been assigned to staff who serve under

the direction of the Deputy Director for Administration. Currently, Carr, Riggs & Ingram, LLC, performs the annual

audit of the financial statements of the PEEHIP. CavMac Consulting, LLC, prepares the annual OPEB valuation

and GASB 74 and 75 reports.

D. Operations:

The Accounting Division of the RSA is responsible for budgeting projected claims and working with the insurance

consultant to estimate premium rates necessary to fund the claims and maintain adequate reserves for unreported

and unpaid claims.

The PEEHIP Division maintains insurance records for the approximately 360,000 active and retired members and

eligible dependents via Member Online Services. All changes are reported to the third-party administrators via

electronic file transfer.

In March 2007, the Alabama Retired Education Employees’ Health Care Trust, a multiple-employer cost-sharing

defined benefit post-employment healthcare plan, was established to provide healthcare benefits to retirees of state

and local educational institutions. As of September 30, 2025, the assets totaled $2.7 billion.

Claims paid by third party administrators and payments to HMOs for Fiscal Years 2023-2025 are summarized as

follows (cash basis):

(Amount in Millions)

TPA

2023

2024

Medical - BCBS of AL

$ 1,013 $ 1,043

Drug - ESI

$ 254 $ 288

MAPDP

$ 77 $ 57

HMO - VIVA

$ 20 $ 18

Optionals - CDIV - Southland $ 63 $ 60

Flex

$

8$

9

Other (e.g., ADPH)

$

5$

6

Total Claims

$ 1,440 $ 1,481

2025

$ 1,119

$ 247

$ 203

$ 19

$ 66

$ 10

$

5

$ 1,669

Number of Members with medical contracts and number of dependents enrolled in PEEHIP Medical Coverage and

Optional Coverage as of January 31, 2026:

As of January 31, 2026

Hospital/Medical

Hosp/Med

Supplemental

Total Hosp/Med

Humana

Viva Health

Total Hospital/Medical

Active

Retired

Total

Total Covered

Single Family Single Family Single Family Contracts Persons

35,297 52,286 3,753 5,580 39,050 57,866

96,916 230,639

188 1,537

546

770

734 2,307

3,041 8,596

35,485 53,823 4,299 6,350 39,784 60,173

99,957 239,235

-

- 40,442 20,437 40,442 20,437

60,879 80,907

727

518

133

90

860

608

1,468 2,747

36,212 54,341 44,874 26,877 81,086 81,218 162,304 322,889

As of January 31, 2026

Optional Plans

Active

Retired

Total

Total Covered

Single Family Single Family Single Family Contracts Persons

Cancer

3,850 6,175 4,636 5,127 8,486 11,302

19,788 39,054

Dental

24,340 45,564 28,777 30,718 53,117 76,282

129,399 272,384

Vision

8,585 13,678 7,071 9,488 15,656 23,166

38,822 81,865

Indemnity

2,608

All optional plans are with

Southland

3,825

2,503

2,249

5,111

6,074

11,185 22,141

PEEHIP also implemented a MAPDP effective January 1, 2017. The member count for this program is

approximately 81,000 (included above), and the plan is currently administered by Humana.

E. Funding:

Employer paid health insurance premiums, member payments for family coverage, and additional selected optional

coverage are submitted to the PEEHIP each month from the employer school systems for active employees and the

retirement payroll process for retirees. There are approximately 200 local employer systems participating in

PEEHIP.

F. Other Information:

Additional terms and conditions applicable to, and hereby incorporated within, this RFP and all proposals

submitted in response to this RFP are located at https://www.rsa-al.gov/about-rsa/itb-rfp/ and titled:

• RSA Reservation of Rights and Requirements for ITBs and RFPs

• RSA Standard Terms and Conditions for Solicitations and Contracts

• RSA Procedure for Resolution of Controversies

By submitting a proposal, all proposers are deemed to have agreed to all terms and conditions included

within the above documents unless a proposer provides RSA with a document clearly stating its exceptions

to any term or condition, along with a detailed justification therefor.

Other documents that are considered as part of this RFP may be located via the internet as follows:

RSA’s website – www.rsa-al.gov

PEEHIP information on RSA’s website – www.rsa-al.gov/index.php/members/peehip/

Alabama Secretary of State’s website – www.sos.alabama.gov

PEEHIP Law – Code of Alabama 1975, Title 16, Chapter 25A

Flexible Benefits Plan Law

Commodity Codes

• NAICS 524114Direct Health and Medical Insurance Carriers
• NAICS 524210Insurance Agencies and Brokerages
• NAICS 541611Administrative Management and General Management Consulting Services

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