Notice of Intent to Award

The Division of Retirement and Benefits issued public Notice of Intent to Award the Long-Term Care Plans Administrator contract for the State of Alaska retiree long-term care plans to CHCS Services, Inc. on Friday, April 30, 2021. A 10-day protest period will follow before the contract is awarded.

• This contract was competitively bid through a Request for Proposals (RFP) issued on March 5, 2021.
• The new CHCS contract will take effect July 1, 2021.
• The contract is for an initial three-year term.
• The terms of the plans are not changing, and members will continue to receive the same benefits they do today.
• Because the vendor is remaining the same, members should experience a seamless transition from one contract term to the next.

Background

The State of Alaska provides health insurance, including medical insurance, through the AlaskaCare plans to certain state employees, retirees, and their dependents, including persons vested in the Public Employee Retirement System (PERS), Teachers Retirement System (TRS), and Judicial Retirement System (JRS).

The AlaskaCare health plans provide medical, dental, vision, audio, and long-term care benefits for an estimated 90,000 policies with an annual combined spend of over $700 million. The plans are self-insured, meaning the state is responsible for paying the claims incurred, and are managed in the Division of Retirement and Benefits (Division). The Division hires contractors, or Third-Party Administrators, to administer the benefits including adjudicating claims, developing a network of providers, establishing the systems necessary to process claims, providing a call center for members, and other activities necessary to carry out the functions of a health plan.

Frequently Asked Questions

What is a Third-Party Administrator/Long-Term Care Plans Administrator?

A Third-Party Administrator (TPA), or Long-Term Care Plans Administrator, is a company the Division hires to process AlaskaCare long-term care claims. Today, these claims are processed by CHCS, and they will continue to process them through the end of the current contract term.

How will members be impacted?

Members will receive announcements regarding the new contract, but because the current vendor, CHCS, will continue to process claims under the new contract, members will not experience a change in administrator.

Why was this contract put out for bid?

Periodically the Division competitively bids Third-Party Administrator contracts through a Request for Proposals (RFP). This gives the Division an opportunity to seek better service at lower cost for members and the plan.

Are medical or dental benefits impacted?

No. This contract only relates to the AlaskaCare Long-Term Care plans.

How was CHCS selected?

The Division conducted a competitive procurement that evaluated vendors based on a combination of customer service abilities, organizational capacity, and overall cost. Evaluators included Division staff and a member of the retiree health plan advisory board.

More information, including the proposal materials are available online.

When will the new contract take effect?

The new CHCS contract will take effect July 1, 2021.

Are benefits changing due to the new contract?

No. Benefits are outlined in the AlaskaCare retiree Long-Term Care Booklets. The LTC Third-Party Administrator processes claims in accordance with the appropriate AlaskaCare booklet.

Does this impact both retirees and active employees?

No. Only eligible AlaskaCare retirees and their dependents may participate in the Long-Term Care plans. The plans are not open to active employees.

Resources

More information including the proposal materials are available online here.

Visit the Retirement Planning page for more information on the PRPA.