State Board of Finance approves RFPs for Medicare Advantage plan and pharmacy benefits manager

The State Board of Finance voted on an emergency call to authorize two solicitations Friday: an RFP for a Medicare Advantage plan designed for state and public school retirees and an RFP for a pharmacy benefits manager (PBM).

Jake Bleed of the Employee Benefits Division told the board the accelerated timetable is driven by an implementation target of Jan. 1, 2023. "We will put RFPs out on the street for bid," Bleed said, adding that proposals will be scored according to state procurement rules and the highest-scoring vendor will be invited to negotiate a final contract before returning to the board and, if required, the Arkansas Legislative Council for final approval.

The move matters because the RFPs would reshape how health benefits are purchased for thousands of state and public school retirees. Bleed said the Medicare Advantage option under consideration would be a separate, self-funded plan tailored to retirees rather than a standard commercial Medicare Advantage product: "When we draft the RFP as a starting point, we're going to take our current level of coverage and basically say, this is the bottom," he said.

Board members and Representative Ferguson pressed Bleed on network adequacy and benefits that members currently receive. "All of our health care is in Memphis,"…