|The Custom Benefit Solution vendor was awarded a contract for an initial term of five (5) years commencing May 3, 2016 and expiring April 25, 2021. The contract was the result of a competitive RFP reference #22037311. CMS currently sponsors and administers group insurance benefits for approximately 400,000 enrollees, including the State Employees Group Insurance Program, the Local Government Health Program, Teachers Retirement Insurance Program and the College Insurance Program. The contract is being amended to provide for a contractual increase to the rates and minor administrative language changes.|
The contract provides for annual adjustments to the per-member per-month (PMPM) rate and any elected optional services based upon changes in the CPI-W. The contract allows for a PMPM rate increase as outlined below:
"For each subsequent year of the initial term of the Contract, unless otherwise agreed by the parties, the PMPM rate shall increase by the lesser of: (a) 2.5%; or (b) the increase in the Consumer Price Index, calculated as the percentage change in CPI-W from July 1 of the preceding calendar year to July 1 of the calendar year in which the price increase will become effective."