Workers' Compensation Assigned Risk Plan Administrator Services

Arizona seeks a plan administrator for workers’ compensation assigned risk and occupational disease coverage, with responsibilities including operations management, audits, premium payment plans, and public inquiry handling.

Administer the Arizona Workers' Compensation Assigned Risk Plan (AWCARP) according to A.R.S. § 23-1091 and other applicable state laws.
Develop and submit a Plan of Operation using the SERFF system within 30 days of contract award, subject to agency approval.
Select and manage at least two Servicing Carriers, providing a list of at least three proposed carriers to the agency within 120 days of award.
Establish and evaluate Servicing Carrier performance standards, ensuring they cover risks, pay claims, and provide safety management.
Maintain daily AWCARP operations and keep the Using Agency informed of important matters.
Train Using Agency employees on relevant policies, procedures, and systems.
Make recommendations for improving AWCARP operations and amending the Plan of Operation.
Comply with A.R.S. § 20-149, ensuring no conflicts of interest or prohibited activities.
Refrain from offering gifts, money, or future rewards to Servicing Carriers, insurers, or state employees.
Provide all necessary resources and bear all expenses to fulfill contract requirements.
Maintain documentation for all fees and charges in accordance with generally accepted accounting principles.
Initiate and oversee an audit plan for AWCARP, including independent audits of Servicing Carriers and resolution of recommendations.
Be prepared to travel to Servicing Carrier offices as directed by the Using Agency.
Maintain comprehensive books, records, and documents related to contract costs and expenses for a specified period.
Allow the Using Agency to inspect and audit all phases of performance.
Implement policies for smooth service transitions, equitable risk apportionment, and employer coverage assistance.
Administer claims matters, including reporting, investigation, and fraud reporting.
Administer premium billing, collection, and audits, including payment plans and notices to the Industrial Commission of Arizona.
Collect, store, and report AWCARP statistical data and provide various reports to the Using Agency.
Oversee the Servicing Carrier Program, including monitoring performance and correcting deficiencies.
Ensure personal health information is maintained securely and confidentially, complying with HIPAA and other state/federal laws.
Comply with ARS Title 18, Chapter 5.
Implement programs to reduce employer reliance on AWCARP with measurable objectives.
Administer AWCARP's loss control program, including safety programs and criteria for services.
Provide customer service for inquiries and complaints from the public, agents, and insurers.
Provide general AWCARP administration and oversight, including legal coordination, policy determination, and expenditure management.
Ensure a smooth transition of AWCARP administration to a new contractor at contract conclusion.
Comply with NIST Low/Moderate Impact security controls for State Data.
Provide a Disaster Recovery plan upon request.
Notify the State immediately (within 24 hours) of any unauthorized data access or disclosures.
Do not release State data to third parties without prior written consent.
Employ protections for Personally Identifiable Information (PII) as defined by A.R.S. § 18-551 and NIST SP 800-160.
Comply with HIPAA for Protected Health Information (PHI) and sign Business Associate Agreements.
Prohibited from using State of Arizona Materials or Data in generative AI queries or for training proprietary AI programs unless explicitly approved.
Disclose utilization of generative AI and ensure proper licensure of AI model training data.
Personnel in IT positions must undergo security clearance and background checks, including fingerprinting.
Employ appropriate system management, fraud prevention, detection, and encryption for State's proprietary/confidential information.
Contractor personnel must comply with State policies regarding data access, privacy, and security.
Ensure State access IDs/passwords are used only by authorized personnel.
Ensure hardware, software, and data provided by the State are used only for Work and not commercially exploited.
Comply with Section 508 of the Rehabilitation Act for electronic and information technology.
Undergo and successfully complete an AZRAMP assessment for Cloud applications hosting State Data.
Allow the State to conduct penetration tests of the Contractor's application.
Submit system logs from the Cloud system to the State of AZ security team upon request.
Employ a government-rated Cloud compartment for sensitive/regulated State Data.
Comply with all statewide enterprise architecture, IT security policies, standards, and procedures established by AZDOHS.
Ensure Contractor personnel have escorts in state facilities if required.
Complete the appropriate AZRAMP control sheet based on State Data classification.
Provide Information Security documentation for AZRAMP assessment.
Submit an unedited and signed State of Arizona HIPAA Business Associate Addendum if applicable.
All contract awards are contingent on successful completion of the AZRAMP Level 2 or Level 3 assessment.
Comply with all applicable State and Federal laws and regulations, including FISMA, OMB Circular A-130, National Cyber Strategy, HITECH, IRS Publication 1075, CJIS Security Policy, MARS-E, A.R.S. §18-104, A.R.S. §41-4282, A.R.S. §18-551, A.R.S. §18-552, Arizona Executive Order 2008-10, SIPC MOU, State Environmental policies, FERPA, DPPA, Incident Response Reporting program, State of Arizona Library Records Management, and PCI Security Standards.
Comply with State Executive Order No. 2023-10 (prohibiting TikTok on State IT).
Certify not currently engaged in a boycott of Israel and refrain from such boycott.
Certify compliance with A.R.S. § 35-394 regarding the use of forced labor of ethnic Uyghurs.
Perform services involving data access within the defined territories of the United States.
Maintain all required licenses and permits.
Have a plan for continuing performance in the event of a declared public health emergency.
Not engage in lobbying activities using contract monies.
Warrant compliance with all Federal immigration laws and regulations relating to employees and A.R.S. § 23-214, Subsection A.
Warrant that Materials and Services do not infringe intellectual property rights.
Warrant that Materials and Services comply with all applicable federal, state, and local laws and policies.

$5,000,000 – $20,000,000

Solicitation Due Date: March 30th, 2026 at 3:00 PM

Question Deadline: March 23rd, 2026

Plan of Operation Submission: Within 30 days of contract award

Proposed Servicing Carriers List to Agency: Within 120 days after award

Servicing Carrier Selection Start: Within 14 days after Plan of Operation approval

Applicant/Agent Notification for Coverage Request: Within 3 working days

Reports to Using Agency: At least annually by January 31st

Servicing Carrier Termination Advance Notice: At least 90 days

Price Increase Notice: Minimum 60 days advance notice

ACH Vendor Authorization Form Submission: Within 30 days after contract effective date

Invoice Payment: Within 30 days

Protest of Proposed Award or Award: Within 10 days after procurement file is available for public inspection

Arizona Department of Administration State Procurement Office

Organization overview and procurement intelligence available on paid plans.

This RFP seeks a vendor to provide workers' compensation assigned risk plan administrator services, including occupational disease coverage for employers denied coverage by two or more insurers. The selected administrator will be responsible for charging a reasonable fee to all insurers transacting workers' compensation insurance in Arizona, based on each insurer’s proportion of the prior year’s net direct premiums.

The contractor must operate according to an approved Plan of Operations, maintaining and administering daily functions for the agency. Training for agency employees will be provided to ensure proper handling of policies, procedures, and systems related to the service. Independent audits, including reserve analysis and financial evaluations of Servicing Carriers, must be conducted and completed by the contractor at their own expense.

The administrator will also be responsible for addressing appeals, litigations, settlements, and exceptions arising from contract performance, ensuring these matters are resolved. Premium payment plan options for insured employers, handling inquiries and complaints from the public, and oversight of servicing contractors are required duties under this contract.

Workers' Compensation Assigned Risk Plan Administrator Services

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