Tennessee Department of General Services #RFP 31786-00186

RFP for Fully-Insured Short-Term and Long-Term Disability Insurance Services for Tennessee State Employees

This procurement opportunity is issued by the State of Tennessee, Department of Finance and Administration, Division of Benefits Administration, seeking a contractor to provide fully-insured Short-Term Disability (STD) and Long-Term Disability (LTD) insurance services for eligible state employees across central state government, state higher education, and state offline agencies. - Government Buyer: - State of Tennessee - Department of Finance and Administration - Division of Benefits Administration - State Insurance Committee - OEMs and Vendors: - Metropolitan Life Insurance Company (MetLife) - Products and Services Requested: - Short-Term Disability Insurance: - Fully-insured, voluntary employee-paid coverage - Weekly benefits: 60% of predisability salary, max $2,500/week - Elimination periods: 14 or 30 days - Maximum benefit duration: 13 weeks (reduced from prior 26 weeks) - Rehabilitation incentives and organ donor benefits - Long-Term Disability Insurance: - Fully-insured, employer-paid (noncontributory) for central state and higher education employees - Employee-paid (contributory) for state offline agency employees - Monthly benefits: 60-63% of predisability salary, max $7,500 to $10,000 - Elimination periods: 90 or 180 days - Benefit duration until normal Social Security retirement age or specified months - Rehabilitation incentives, cost-of-living adjustments, death benefits, portability - Administrative and Support Services: - Medical underwriting and eligibility determination - Disability determination and claims processing with benefit offsets (e.g., workers compensation, Social Security) - Return to work programs and case management - Member communications and outreach - Dedicated call center operations with performance standards - Online services, enrollment file processing, and data integration with state systems - Comprehensive reporting, service level agreements, and audit cooperation - Unique or Notable Requirements: - Transition of existing members with guaranteed issue and credit for pre-existing conditions - Detailed performance guarantees with liquidated damages - Data security and breach reporting obligations - No conversion options for STD and LTD plans starting January 1, 2027 - Period of Performance: - Contract effective from March 1, 2026 - Implementation phase through December 31, 2026 - Benefits coverage from January 1, 2027, through December 31, 2031 (70 months total) - Locations: - Coverage and services apply to employees of central state government, state higher education, and state offline agencies in Tennessee - State of Tennessee, Nashville, TN (primary administrative location)

Description

The State of Tennessee, Department of Finance and Administration, issued a Request for Proposals (RFP) 31786-00186 for short-term disability and long-term disability insurance services. The contract is intended to secure a vendor to provide fully-insured disability benefits for eligible state employees across multiple agencies. The scope covers medical underwriting, claims processing, return to work programs, member communications, and data integration, among other services. The contract term begins March 1, 2026, with benefits effective January 1, 2027, and includes detailed performance and reporting requirements. The solicitation includes several amendments and has a response deadline of November 21, 2025.

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