The File That Proves a Fair Comparison.
There is no single ERISA form for a health plan request for proposal. The Department of Labor does expect a documented, like-for-like comparison. This page lists the records to keep.
Start Here.
General information, not legal or tax advice. Check the cited sources before you act.
Selecting and Monitoring Health Plan Service Providers
The overview page for this series, with all six topics and the sources.
Fee Reasonableness and 408(b)(2)
The statutory exemption, the broker and consultant disclosure for group health plans, and what to do when it is missing.
The Prudent Selection Duty
What ERISA section 404(a)(1) requires when you choose a TPA, PBM, broker or other vendor.
Same Information, More Than One Bidder.
The Department of Labor’s guide for group health plan fiduciaries gives the core of an RFP in three sentences. Get information from more than one provider. Give each prospective provider the same complete information about the plan and the services sought. Compare the firms using the same information, such as services, experience and costs. The guide then adds that fiduciaries should document the selection and monitoring process, and that a committee should be educated on its role.
None of the sources we reviewed prescribes a particular number of bidders or a formal document called an RFP. What they describe is a fair, comparable process, and a written request is the easiest way to deliver one.
The Request Package.
Start with a plan summary that every bidder receives: the funding arrangement, covered lives, the current vendor and its performance gaps, the services wanted and the renewal date. Add the questionnaire. Add the date by which questions are due, and a rule that every question and every answer goes to every bidder in writing. That Q and A log is the proof that no bidder had an inside track.
Include the incumbent. If the incumbent is kept, the record should show that it was held to the same questions as everyone else.
Compare the Whole Bill, Not One Line.
Vendors package prices differently. One quotes a single bundled fee, another charges for each service, and a third folds some costs into other lines. The Department of Labor tells fiduciaries to ask whether the arrangement is bundled or priced service by service, to compare the total cost for all services, and to check that an estimate does not include services you never asked for.
Ask also how the plan will pay. The guide says the plan document should specify how fees are paid, so confirm that the way the vendor expects to be paid matches the document, or plan to amend the document.
The Comparison and The Score.
Put the answers into one grid. The Department of Labor advises comparing total cost for all services, and checking whether a bundled quote includes services you did not ask for or whether services are priced separately. Ask which services the estimated fees cover and which they do not, and whether the provider receives third-party compensation.
Agree on the scoring categories before the answers come in: service model, experience with plans of your size and complexity, financial condition, licenses and accreditations, references, and cost. Scores matter less than the reasons written next to them.
Ask Brokers and Consultants for Compensation Terms.
If a bidder is a broker or consultant to a group health plan, ERISA section 408(b)(2)(B) calls for a written disclosure of its services and compensation reasonably in advance of entering, extending or renewing the contract. Making the disclosure part of the RFP response means the comparison is on real numbers. The rule itself is explained on the fee reasonableness page.
Record Why, Not Just Who.
Close the file with a short memo: who decided, which options were considered, what tipped the choice, any conflicts noted, and the contract that was signed. Read the contract before signing and keep a copy, as the Department of Labor advises. Then move the file into the review cycle on the monitoring calendar.
We are not giving retention advice here. Ask counsel how long the selection file should be kept; we have not cited a specific period.
Laws And Sources
Department of Labor, Understanding Your Fiduciary Responsibilities Under a Group Health Plan: Hiring a service provider: same information to each, compare, document.
29 U.S.C. 1104 (ERISA Section 404): The prudence standard in subsection (a)(1)(B).
29 U.S.C. 1108 (ERISA Section 408): Subsection (b)(2)(B) on written compensation disclosures for group health plans.
General information, not legal or tax advice.
Quick Answers.
Short replies on this page’s topic, each tied to a fuller guide.
Do we have to issue a formal RFP?
The sources we reviewed do not require a document with that name. The Department of Labor does call for information from more than one provider, given the same information and compared on the same terms, and a written request is the practical way to show it.
What should the RFP file contain?
The plan summary sent to bidders, the questionnaire, the question and answer log, each response, the comparison grid, notes on licenses, references and conflicts, the decision memo and the signed contract.
Should the current vendor be included?
Yes, as a matter of fair comparison. If the incumbent stays, the record should show it answered the same questions as the others.
The Rest Of This Series.
Monitoring on a Calendar
A plan-year rhythm for checking reports, fees, complaints and contract terms.
PBM and Pharmacy Contracts
Fiduciary questions for the pharmacy benefit manager, plus the status of the January 2026 DOL proposal.
TPA Contracts and Fiduciary Roles
Who is the plan administrator, who is a named fiduciary, and how co-fiduciary liability works.
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