RFP 26-005 Debt Collection Services for PEEHIP

REQUEST FOR PROPOSALS
FOR
DEBT COLLECTION SERVICES
FOR
THE
PUBLIC EDUCATION EMPLOYEES' HEALTH
INSURANCE PLAN
FOR
5 Year Contract Period
BEGINNING
September 1, 2026
RFP 26000000005
Issue Date: March 31, 2026
PEEHIP Request for Proposals - Debt Collection Services Page 1 of 13

This RFP Contains Information Under the Following Headings:
SECTION I
General Information for the Proposer
A. Purpose
B. Background
C. Description of PEEHIP's Management
D. Operations
E. Funding
F. Other Information
G. Proposal Opening
H. Key Dates
I. Scope of Services
J. Payment Schedule
K. Selection of Firm(s)
L. Economy of Preparation
M. News Releases
N. Addenda to the RFP
O. Contact Point
P. Minimum Experience Qualifications
Q. Agents
SECTION II
Information Required from Proposers
A. Qualifications of the Firm
B. Cost and Price Analysis
SECTION III
Criteria for Evaluation
A. General
B. PEEHIP's Rights
C. Termination
D. Cost and Price Analysis
E. Proposal Evaluation Form
SECTION IV
Additional Documents
A. State of Alabama Disclosure Statement (Pursuant to the Code of Alabama 1975, Title 41,
Chapter 16, Article 3B)
B. Sample PEEHIP State Contract
C. Immigration Compliance Certificate
D. Proposer Profile Form
E. Proposer References Form
F. PEEHIP Statement on HIPPA Compliance Documentation
G. Third Party Vendor Checklist
H. Business Associate Agreement
I. IRS Form W-9
J. Non-Disclosure Agreement
K. Certification of Bidder or Proposer

SECTION I
General Information for the Proposer
A. Purpose:
This Request for Proposals (RFP) solicits proposals for Debt Collection Services for a contract period of
five (5) years for the Public Education Employees' Health Insurance Plan (PEEHIP) of Alabama. These
services will maximize collections of delinquent accounts, thereby enhancing PEEHIP's revenues, using
the most cost-effective methods and the highest professional standards. With respect to this collections
work, PEEHIP seeks a contingency fee arrangement only.
B. Background:
The PEEHIP provides hospital medical health insurance benefits for all full-time employees and certain
part-time employees of the Alabama public educational institutions, which provide instruction at any
combination of grades K-14. These insurance benefits are also available to retired employees with a portion
of the retiree's cost paid through the employer premium for active employees. Coverage is also offered to
eligible dependents.
Members have the following choices for health insurance coverage as follows:
* Hospital medical administered by Blue Cross and Blue Shield of Alabama - Actives and Non-Medicare
eligible retirees and eligible dependents.
* Prescription Drug coverage administered by Express Scripts - Actives and Non-Medicare eligible
retirees and eligible dependents.
* Health Maintenance Organization - Viva - Actives and Non-Medicare eligible retirees.
* Medicare Advantage Prescription Drug Plan (MAPDP) - Humana - Medicare eligible retirees and
Medicare eligible dependents of retirees.
* Optional Coverage administered by Southland Benefit Solutions, LLC, - consisting of Dental, Hospital
Indemnity, Vision, and Cancer.
* Supplemental Hospital Medical administered by Blue Cross and Blue Shield of Alabama-supplemental
coverage for Actives and Non-Medicare eligible retirees.
Members electing one of the hospital medical plans must pay a small amount each month for single
coverage plus an additional amount if the member elects family coverage. Additionally, members may
select the optional coverage plans or supplemental plan in lieu of the hospital medical coverage. Members
electing hospital medical coverage may also elect to pay an additional amount to acquire one or more of
the optional plans.
C. Description of PEEHIP's Management:
Administrative responsibility for the PEEHIP, its benefit plans, and its funds is with the Retirement Systems
of Alabama (RSA) administrative staff. The Chief Executive Officer (CEO) of the Teachers' Retirement
System (TRS) also serves as CEO for the PEEHIP. All matters relating to the PEEHIP have been assigned
to staff who serve under the direction of the Deputy Director for Administration. Currently, Carr, Riggs &
Ingram, LLC, performs the annual audit of the financial statements of the PEEHIP. CavMac Consulting,
LLC, prepares the annual OPEB valuation and GASB 74 and 75 reports.

D. Operations:
The Accounting Division of the RSA is responsible for budgeting projected claims and working with the
insurance consultant to estimate premium rates necessary to fund the claims and maintain adequate reserves
for unreported and unpaid claims.
The PEEHIP Division maintains insurance records for the approximately 360,000 active and retired
members and eligible dependents via Member Online Services. All changes are reported to the third-party
administrators via electronic file transfer.
Currently there are approximately 162,000 hospital medical contracts with 321,000 covered lives. As of
March 24, 2026, PEEHIP had 1,449 delinquent accounts in "collections" status for a combined total of
$1,622,107.75(see aging table below)
Less than 30 days $0
30 - 60 days $8,378.22
60 - 90 days $22,710.58
More than 90 days $1,591,018.95
E. Funding:
Employer paid health insurance premiums, member payments for family coverage, and additional selected
optional coverage are submitted to the PEEHIP each month from the employer school systems for active
employees and the retirement payroll process for retirees. There are approximately 200 local employer
systems participating in PEEHIP.
F. Other Information:
Additional terms and conditions applicable to, and hereby incorporated within, this RFP and all
proposals submitted in response to this RFP are located at https://www.rsa-al.gov/about-rsa/itb-
r*f p/ and titled:
*
* RSA Reservation of Rights and Requirements for ITBs and RFPs
RSA Standard Terms and Conditions for Solicitations and Contracts
RSA Procedure for Resolution of Controversies
By submitting a proposal, all proposers are deemed to have agreed to all terms and conditions
i ncluded within the above documents unless a proposer provides RSA with a document clearly
sOttahteinr gd oitcsu emxecnetps ttihoants a troe aconnys tiedremre do ra sc opanrdt iotifo tnh,i sa lRoFnPg wmiatyh bae d leotcaaitleedd v juias tthifeic ianttieornne tth aesr efofollroew. s:
RSA's website - www.rsa-al.gov
PEEHIP information on RSA's website - www.rsa-al.gov/index.php/members/peehip/
Alabama Secretary of State's website - www.sos.alabama.gov
PEEHIP Law - Code of Alabama 1975, Title 16, Chapter 25A, Article 2
Flexible Benefits Plan Law - Code of Alabama 1975, Title 16, Chapter 25A, Article 2

G. Proposal Opening:
Please submit one printed non-redacted and one printed redacted copy of your proposal, and a digital copy
(non-redacted and redacted) on a USB drive in a sealed envelope with the following plainly marked on the
front:
PEEHIP
Debt Collection Services
RFP 26-005
Opening, April 28, 2026
Proposals sent via UPS or FedEx: Proposals sent via U.S. Mail:
Mr. Gregory A. Clemmons Mr. Gregory A. Clemmons
Assistant Director of Revenue - PEEHIP Assistant Director of Revenue - PEEHIP
Retirement Systems of Alabama Retirement Systems of Alabama
201 South Union Street P.O. Box 302150
Montgomery, AL 36104 Montgomery, AL 36130-2150
Proposals may be hand delivered to Gregory Clemmons at the Retirement Systems Building, 7th floor, 201
South Union Street, Montgomery, Alabama. Proposals will be accepted until 2:00 p.m. CST on April 28,
2026. Proposals will not be accepted after this date and time. Proposals will be opened after 2:00 p.m. CST
on April 28, 2026. PEEHIP reserves the right to reject any and all responses to this RFP.
Any questions regarding this RFP must be submitted electronically via email by April 8, 2026, at 2:00 p.m.
CST to Gregory Clemmons at Greg.Clemmons@rsa-al.gov.
All responses to this solicitation may be subject to public disclosure upon request. Proposers should
be aware of the Open Records Act (Ala. Code 36-12-40), the Alabama Trade Secrets Act (Ala. Code
8-27-1 and 8-27-6), and the Public Record Status of Certain Procurement Information statute (Ala.
Code 41-4-115).
Any confidential, trade secret, or proprietary commercial information contained in a proposal must
be clearly marked as such. Identification of an entire proposal as confidential is not acceptable unless
t he proposer states in detail the specific grounds and applicable laws which support treatment of the
eHn. t iKree yp rDoaptoess:a l as protected from disclosure.
RFP 26-005 KEY DATES
Activity Date
RFP to be Issued/Posted on RSA's website March 31, 2026
Deadline to Submit Questions April 8, 2026 @ 2:00 p.m. CST
Responses to Questions posted to RSA's website April 10, 2026 @ 5:00 p.m. CST
Responses Due by April 28, 2026 @ 2:00 p.m. CST
Bid Opening Date April 28, 2026
Finalist Conferences Week of May 4, 2026
Award of Bid Week of May 18, 2026

I. Scope of Services
I. Scope of Work
The PEEHIP is seeking a qualified debt collection agency to recover outstanding debts owed to the
PEEHIP. The primary objective is to maximize the recovery of delinquent accounts while strictly
adhering to all applicable state and federal laws, maintaining data security, and treating our
members and providers with dignity and respect. Proposer must agree to perform all necessary
services as outlined below.
II. Core Collection Services
The selected vendor will be responsible for the collection of various debt types, which may include,
but are not limited to:
* Member debts related to premiums: Unpaid health, dental, or vision premiums, COBRA premium
arrears, or overpayments made directly to members.
* Member Debts related to claims: Unreturned overpayments to Member related to claim
reimbursements, duplicate payments to Members related to claim reimbursements, or payments
made in error to healthcare facilities and practitioners for ineligible persons or claims.
* Workflow:
1. Accept placements of delinquent accounts from the PEEHIP via secure, automated file
transfer.
2. Initiate collection efforts within 48 hours of account placement.
3. Conduct skip tracing to locate debtors with outdated contact information.
4. Provide a mechanism for debtors to make payments via multiple channels (e.g., online
portal, phone, mail).
III. Member Experience and Professional Conduct
Given the public nature of the PEEHIP and its membership demographic, the vendor must employ a
"soft touch" or consultative collection approach.
* Code of Conduct: Representatives must remain professional, courteous, and non-aggressive at all
times. Harassment or intimidation tactics are strictly prohibited.
* Dispute Resolution: The vendor must have a clear, documented process for handling debt disputes
and routing escalated clinical or claims-based disputes back to the PEEHIP for review.
* Call Recording: All inbound and outbound collection calls must be recorded and made available to
the PEEHIP upon request for auditing and quality assurance purposes.
IV. Regulatory Compliance & Data Security
The vendor must operate in strict compliance with all relevant federal and state regulations
regarding debt collection and protected health information (PHI).
* Statutory Compliance: Full adherence to the Fair Debt Collection Practices Act (FDCPA) and the
Telephone Consumer Protection Act (TCPA).

* HIPPA & HITECH: The vendor must execute a Business Associate Agreement (BAA) and comply
fully with HIPPA privacy and security rules regarding PHI.
* Data Security: The vendor must maintain robust cybersecurity measures, including encrypted data
at rest and in transit. The vendor must provide their most recent SOC 2 Type II audit report. The
vendor must comply with the PEEHIP's Business Associate Policy.
V. Financial Remittance and Reporting
The vendor must maintain transparent and accurate accounting of all funds collected on behalf of
the PEEHIP.
* Remittance: Recovered funds must be remitted to the PEEHIP on a monthly basis via ACH/wire
transfer.
* Reporting Requirements: The vendor must provide a secure online portal or automated reporting
process to be updated at minimum on a weekly basis. Required reports must include:
1. Placement acknowledgment reports.
2. Remittance and recovery summaries (gross collected, fees applied, net remitted).
3. Account status reports (active, closed, bankrupt, deceased). Account statuses must be
consistently updated in real-time.
4. Complaint and dispute logs.
J. Payment Schedule:
On no more than a monthly basis, a fee based upon collections will be paid to the firm.
K. Selection of Firm:
PEEHIP reserves the right to make no award under this RFP. PEEHIP expects to enter into a contract with
the successful proposer. PEEHIP also reserves the right to award all or part of required services under this
RFP to one or more proposers, and this decision will be at the sole discretion of PEEHIP. A Notice of
Intent to Award Contract will be placed on the PEEHIP RFP/ITB website once award has been made and
will state the names of selected vendor(s).Prior to an award of contract, proposers who submit proposals
determined to be reasonably susceptible of being selected for award may be requested to make oral
presentations to the evaluation committee; however, proposals may be accepted, and a final selection made,
without such oral presentations. All proposals shall become the property of the PEEHIP.
Internet and/or website links will not be accepted in responses as a means to supply any requirements stated
within this solicitation. Unless stated elsewhere in this solicitation, PEEHIP will accept and evaluate
alternate submittals on this RFP provided that the response meets all published requirements. PEEHIP
reserves the right to waive minor discrepancies or errors within proposals or to request clarification from a
proposer to the extent allowed by law.
The failure of PEEHIP to require performance of any provision of the solicitation or resulting contract shall
not affect PEEHIP's right to require performance at any time thereafter, nor shall a waiver of any breach or
default constitute a waiver of any subsequent breach or default nor constitute a waiver of the provision
itself.

L. Economy of Preparation:
Proposals should be prepared simply and economically and provide a concise description of the Proposer's
response to the requirements of this RFP. Emphasis should be on clarity. PEEHIP will not be responsible
for any costs incurred by any Proposer in the preparation of a proposal.
M. News Releases:
News releases pertaining to this RFP, the service, or the audits to which it relates will be made only with
prior written approval of the CEO or his representative.
N. Addenda to the RFP:
RSA may, at any time prior to the deadline for proposals, modify this RFP, including the timeline associated
with the RFP. Any modifications made to the RFP prior to the proposal's due date will be placed on the
PEEHIP RFP/ITB website and may, at PEEHIP's discretion, also be provided in writing to all known
solicited vendors.
O. Contact Point:
Any questions that arise concerning this RFP may be directed to Gregory Clemmons at
Greg.Clemmons@rsa-al.gov.
P. Minimum Experience Qualifications:
Proposals will be accepted from firms where both the firm and assigned consultants have the following
minimum experience qualifications:
* Proposer must have been in the collections business for at least the last five (5) years.
* Proposer must not have filed bankruptcy within the last five (5) years.
* Proposer's senior officers, board members or directors must not have any felony convictions.
* Proposer must have experience with at least ten (10) clients in collections of healthcare
premiums or healthcare related bills.
* Proposer must be HIPPA compliant.
Vendor shall provide documentation to verify that the minimum qualifications have been met, the resume(s)
of primary consultant(s) who will be assigned to the account and the resumes and bios of other staff assigned
to support this contract.
Q. Agents:
No agent fees will be payable by PEEHIP or successful Proposer. PEEHIP will respond only to parties
interested in proposing and performing the services.

SECTION II
Information Required from Proposers
Proposals must be submitted in the format outlined below:
A. Qualifications of the Firm:
1. Business Organization:
State the full name and address of your organization, and if applicable, the branch office or other
subordinate element that will perform or assist in performing the work hereunder. Indicate whether
you operate as an individual, partnership, or corporation. If you operate as a corporation, include the
state in which you incorporated. State whether you are licensed to operate in the State of Alabama.
Specifically address the following:
a. Address any anticipated mergers/entity structure changes and key employee departures.
b. Provide a listing of clients who have terminated their relationship in the past 3 years including
the reasons given for the termination.
c. Address any business relationships that might be or might be perceived to be a conflict of
interest with a contract for debt collection services for PEEHIP. What is the context of your
book of business and does your firm represent benefit provider entities with which PEEHIP
currently conducts business or might potentially contract with?
d. Does your firm currently have any business relationships with Blue Cross Blue Shield of
Alabama, Express Scripts, Humana, or other insurance carriers, Medicare Advantage
providers, pharmacy benefit managers, or medical benefit administrators who conduct business
in Alabama and/or are otherwise competitors of the foregoing and reasonably capable of
expanding into Alabama and submitting proposals in response to a competitive solicitation
issued by PEEHIP?
e. Does your firm have a written code of ethics, conflict of interest policy, mission statement or
other related policy? If so, please provide such.
f. List at least 3 customer references where delinquent insurance premiums or medical claims
where the subject of collections (include a company's name, individual contact's name and
telephone number) by completing the Proposer Reference Form.
g. Describe your methodology for implementation of collections
h. Describe minimum necessary data elements required from PEEHIP in order to pursue
collections. PEEHIP's desire is to reduce the amount of PHI or potential PHI from being sent
over to the collection agency.
i. Describe what options members will have for making payments. This would include payments
options made available via phone, online, or via mail. If credit or debit card payment is
accepted, proof of PCI compliance is required throughout the contract period.
j. Describe the training plan. Include details about training for PEEHIP administrators and key
PEEHIP personnel.
k. Please provide the last Service Organization Controls (SOC) 2 Type 2 and HITrust reports
issued for your company.
2. Prior Experience:
As part of your proposal, include a brief statement (maximum five pages) concerning the relevant
experience of persons from your firm who will be performing the proposed consulting. Do not include
general corporate background brochures. Emphasize experience directly applicable to debt collection
services. List a contact person for your clients.

3. Authorized Officials:
Include the names and telephone numbers of personnel of the organization authorized to execute the
proposed contracts with the PEEHIP.
4. Additional Information and Comments:
Include any other information believed to be pertinent but not specifically requested elsewhere in this
RFP.
B. Cost and Price Analysis:
The information requested in this Section is required to support the reasonableness of your proposal price.
Use the following format. PEEHIP requires contingency pricing on actual collections. No other fees will
be accepted. Your proposal must include a Fee Schedule per PEEHIP fiscal year (ex. FY2027 runs 10/1/26-
9/30/27) in the following format:
Year (9/1 - 8/31) 2027 2028 2029 2030 2031
Cost $XXX $XX X $XXX $XXX $XXX