HSA, FSA, & COBRA Administration Services

The City of Waxahachie, Texas, is seeking proposals from qualified carriers to administer Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), and COBRA programs for approximately 475 employees.

The City aims to partner with a provider that offers efficient implementation, reliable administration, and strong customer service while minimizing disruption and enhancing the employee experience. Priority will be given to vendors that deliver user-friendly technology, flexible plan options, compliance expertise, and consistent, responsive support.

Project Details

• Reference ID: RFP-2026-5-2
• Department: Human Resources
• Department Head: Lindsey Mearns (Senior Director of HR & Civil Service)

Important Dates

• Questions Due: 2026-05-20T15:00:00.000Z

Evaluation Criteria

• Cost, Pricing, and Multi-Year Guarantees (35 pts) —

  - Competitive and transparent pricing

  - Multi-year rate guarantees or renewal caps

  - Flexibility for enrollment or plan changes

• Technical Capability (HSA/FSA/COBRA) (25 pts) —

  - User-friendly platforms for participants and administrators

  - Automated COBRA compliance

  - Integration with payroll and HRIS

  - Mobile access and system reliability

• Implementation & Account Management Team (15 pts) —

  - Clear implementation plan and timeline

  - Experienced project and account management

  - Training and ongoing support

• Data Security & Compliance (15 pts) —

  - Compliance with HIPAA, IRS, COBRA regulations

  - Data encryption and access controls

  - Security certifications and breach protocols

• Reporting & Integrations (5 pts) —

  - Customizable, timely reporting

  - Integration with City systems

  - Real-time data access

• References (5 pts) —

  - Experience with similar clients

Submission Requirements

• Authorized Respondent’s Information
• Authorized Official's Contact Information (required) —

  Please provide the contact Information of the authorized official submitting this response. 

  -Legal Name

  -Title

  -Email Address

  -Phone Number

• Response Confirmation (required) —

  By clicking "Please confirm" below, hereon affixed, the respondent declares they have read this solicitation entirely and with full knowledge of the requirements, does hereby agree to furnish the services in full accordance with the requirements of this solicitation if selected.

  Confirming also indicates the following:

  • Person or person’s interest in this solicitation as principals are those named herein.
  • I (we) have carefully examined the contents of this solicitation, and its requirements, and agree to the terms stated herein.
  • The respondent acknowledges the Conflict of Interest Clause and agrees to follow the necessary requirements.

  The undersigned represents that they are authorized to bind the Respondent to fully comply with the terms and conditions of this solicitation's requirements.

• Conflict of Interest Questionnaire (required) —

  Please download the document below and upload the completed questionnaire.

• Company Information
• Please provide your company's most recent signed W-9 (required) —

  Please download the below documents, complete, and upload.

• Full Legal Company Name (required)
• Principal Place of Business Address (required)
• Principal Place of Business Phone Number (required)
• Company Website URL (required)
• Person Authorized to negotiate and sign contracts with the city (if different than the Authorized Contact Provided) (required)
• Number of years in business working on similar types of project? (required)
• State and Date of Incorporation, Partnership, or Ownership Established? (required)
• Are you a certified Small Business (SBE), Disadvantaged Business Enterprise (DBE), or Historically Under-utilized Business (HUB)? (required)
• Cooperative Purchasing
• The City of Waxahachie has established several government entity interlocal agreements. Should any of these Government Entities desire to utilize this contract, would you offer the same terms, conditions,specifications, and pricing to that entity? * (required)
• References —

  Please provide five (5) references who can verify the quality of service your company provides. The City prefers references from customers/governmental entities with a scope of work similar to the project mentioned in this solicitation in which the respondent has worked in the past three years.

  • Company Name Work Was Completed For:
  • Company Location:
  • Time Period Service was Provided:
  • Contact Person and Title:
  • Phone:
  • Email:
  • Description of Contracted Services:
• Reference 1 (required)
• Reference 2 (required)
• Reference 3 (required)
• Reference 4 (required)
• Reference 5 (required)
• Claims and Suits
• Has your organization ever failed to complete any work awarded to your company? (required)
• Are there any judgments, claims, arbitration proceedings, or suits pending or outstanding against your organization or its officers? (required)
• Has your organization filed any lawsuits or requested arbitration regarding awarded contracts within the last five years? (required)
• If you have answered "Yes" to any of the claim and suit questions, please provide supplemental information/documents here. (required)
• Deviations From Specifications
• Does your organization agree to the Assumptions & Expectations as well as minimum qualifications as outlined in the RFP? (required)
• Would you be willing to agree to a performance‐based contract using these criteria? If so, please outline your proposed performance guarantees. (required)
• Will your organization administer and/or underwrite the benefits as they currently stand in the attached summaries/certificates? (required)
• HSA Administration Questionnaire —

  General Administration

• Identify the HSA custodian(s) or banking partner(s) used. (required)
• Describe your KYC (Know Your Customer) process and timeline for opening new HSA accounts. (required)
• Explain how employer and employee contributions are processed (including timing, payroll files, corrections, and error handling). (required)
• Describe your capabilities for employer portal administration (batch funding, reporting, reconciliation, etc.). (required)
• Provide a sample employee-facing HSA account statement. (required)
• Describe the debit card program, including: (required) —
  • Debit care setup, including whether accounts are combined into one card (stacked wallets) or if separate cards can be provided for HSA and FSA; please include options for separate cards, if available
  • MCC restrictions
  • Real time substantiation
  • Mobile wallet compatibility (Apple/Google/Samsung Pay)
• Explain your process for replacement card issuance and average fulfillment timelines. (required)
• Describe your investment lineup (tier structure, brokerage window availability, expense ratios). (required)
• What is the minimum balance required before participants can invest? (required)
• Describe your approach to fund lineup changes and participant communications. (required)
• Are investment advisors or robo tools available? If yes, describe. (required)
• Describe the process for incoming HSA rollovers and trustee to trustee transfers. (required)
• Are there fees for outgoing transfers or rollovers? If yes, provide details. (required)
• Provide screenshots of the participant portal and mobile app. (required)
• Describe available educational tools (calculators, emails, webinars, live support). (required)
• What is your average call center hold time, first call resolution rate, and hours of operation? (required)
• Confirm your procedures for issuing IRS Forms 1099 SA and 5498 SA. (required)
• Describe your reporting package for the employer (frequency, content, delivery method). (required)
• Provide an overview of your fraud monitoring and account protection practices. (required)
• Provide your full HSA fee schedule and indicate which fees are employer paid vs. participant paid. (required)
• Describe any account closure, transfer, or investment related fees. (required)
• FSA Administration Questionnaire
• Describe your claim substantiation process and confirm you support 100% IRS compliant substantiation. (required)
• What percentage of claims are auto adjudicated? (required)
• Describe how receipts and documentation can be submitted (mobile app, upload, email, fax, mail). (required)
• Describe your process for denied claims, notification timelines, and appeal procedures. (required)
• Describe your debit card capabilities (stacked wallets, auto sub, real time adjudication, outage controls), including whether accounts are combined into one card or if separate cards can be provided for FSA when paired with an HSA. (required)
• How do you monitor card misuse and send substantiation reminders? (required)
• Provide your timing and SLA for card fulfillment. (required)
• Describe your administration of: (required) —
  • Grace period
  • Carryover
  • Run‑out period
• Describe blackout period requirements, if any. (required)
• Please describe whether FSA elections are front-loaded (impressed), and any requirements, limitations, or funding considerations associated with this approach. (required)
• Please outline when FSA funds become available for use, including any timing considerations at the start of the plan year (required)
• Provide screenshots of participant tools (account view, transactions, claims filing). (required)
• Describe member communications during: (required) —
  • Open enrollment
  • New hires
  • Mid‑year events
• List languages supported in your call center and mobile app. (required)
• Describe your support for nondiscrimination testing. (required)
• How do you notify the employer of potential testing failures? (required)
• Describe your eligibility file requirements. (required)
• Describe payroll integration for FSA deductions. (required)
• Provide samples of standard monthly reporting. (required)
• Provide your full FSA fee schedule (PEPM, transaction fees, card fees). (required)
• Describe any additional or optional services and associated costs. (required)
• COBRA Administration Questionnaire
• Describe your full COBRA administration process from the qualifying event to the termination of COBRA coverage. (required)
• Are all notices prepared, mailed, and tracked internally or through a partner? (required)
• Describe how you ensure compliance with timing requirements for: (required) —
  • General Notices
  • Election Notices
  • QE Notices
  • Premium payment grace periods
• Provide sample versions of all required COBRA notices. (required)
• How do you verify address accuracy for all mailings? (required)
• Do you offer electronic notice delivery? If yes, describe the consent and tracking process. (required)
• Describe how premium billing is handled (frequency, methods, late notices). (required)
• How do participants remit payment (online portal, check, ACH, auto draft)? (required)
• Explain your procedures for NSF payments, reinstatements, and cancellations. (required)
• Describe your process for updating insurers with COBRA enrollments/terminations. (required)
• What carriers or systems do you currently integrate with? (required)
• Describe file feed formats and timing. (required)
• Provide your call center metrics (ASA, abandonment rate, first call resolution). (required)
• Describe your escalation process for urgent participant issues. (required)
• Provide standard hours of operation and after hours support details. (required)
• Describe your record retention and archiving practices. (required)
• Do you maintain audit trails of all participant interactions? (required)
• Provide examples of employer reporting for COBRA activity. (required)
• Provide your COBRA fee structure (PEPM, per event fees, optional services). (required)
• Describe any pass through postage or print costs. (required)
• Security, Privacy & Compliance Questionnaire
• Provide your most recent SOC 2 Type II report and list the systems in scope. (required)
• Are you HITRUST certified? If not, when is certification planned? (required)
• Describe your IAM program (RBAC, SSO, MFA, password policy). (required)
• Describe your privileged access monitoring controls. (required)
• Confirm encryption at rest and in transit (provide standards: AES 256, TLS 1.2+). (required)
• Describe your vulnerability management program (patch cadence, scanning schedule). (required)
• What is your incident response SLA for notifying the City of Waxahachie? (required)
• Provide your breach notification process. (required)
• Provide your standard Business Associate Agreement (BAA). (required)
• Describe how you manage downstream/subcontractor BAAs. (required)
• Describe your data retention and destruction policy. (required)
• Confirm the cost and process for returning all City data upon contract termination. (required)
• Implementation Questionnaire
• Describe your implementation methodology and provide a sample project plan. (required)
• Provide a proposed implementation timeline for a group of approximately 475 eligible employees. (required)
• Identify roles and responsibilities (City vs. vendor). (required)
• Describe required data elements for eligibility files. (required)
• Describe your testing process for: (required) —
  • Eligibility files
  • Payroll contributions
  • COBRA QE files
• Describe your blackout period (if applicable). (required)
• Provide your escalation matrix and client communication cadence. (required)
• Reporting & Analytics Questionnaire
• Provide a list of all standard reports available to the City. (required)
• Describe your ad hoc reporting capabilities. (required)
• Provide samples of monthly and quarterly reporting. (required)
• How long does the report data remain available to the employer? (required)
• Describe your billing/invoicing reports for HSA, FSA, and COBRA. (required)
• Fees & Guarantees Questionnaire —

  Please Complete the attached Fee Matrix (Attachment C).

• Provide: (required) —
  • Implementation fees
  • PEPM fees
  • Per‑account fees
  • Event‑based COBRA fees
  • Banking/custodial fees
• Identify employer vs. participant paid fees. (required)
• Provide proposed rate guarantees for up to 5 years. (required)
• Describe any: (required) —
  • Implementation credits
  • File feed credits
  • Communication materials credits
• Provide any at risk guarantees (performance credits). (required)
• Please outline any fees related to debit cards, including initial issuance and replacement/reprint fees. (required)
• Outline any fees associated with transferring HSA accounts during implementation. (required)
• Proposal Submission —

  Upload your proposal documents.

  Required Submission Documents:

  • Completed Admin Services Proposal
  • Pricing Sheet & Fee Matrix
  • Sample COBRA notices
  • Sample account management structure
  • Sample reporting package
  • SOC 2 Type II/HITRUST summary
  • BAA Template
• Please upload your proposal submission here. (required)
• What type of solicitation are you requesting? (required) —

  If the one-time cost or estimated annual cost of the contract is over $50,000, we will not be allowed to request quotes unless the contract will based on co-op pricing. 

• Which staff members do you anticipate will be included in the evaluation committee? (required)
• Which evaluation criteria sections will be evaluated for this project? (required)
• Which type of project will this solicitation be for? (required)
• Is this construction project vertical or horizontal? (required)
• Will this solicitation be for a one-time project/project or an annual contract? (required)
• What is the desired completion date for this project? (required)
• Which annual contract option would best fit this contract? (required) —

  Our standard contract renewal option is a one-year term, with 4 one-year renewal options so that if there are any issues with the contract, we are not locked in for multiple years. 

• Project Funding
• What is the anticipated cost or annual spend for this contract? (required)
• Have the funds for this project been approved? (required)
• Which Fund, Dept, and GL Account, as well as the Project Number if applicable, will be used for this project? (required)
• In which Fiscal Year will these funds be available? (required)
• Will any of the special funds below be used for this project? (required)
• Have the funds been received or when do you anticipate receiving the funds? (required)
• Have you attached the grant approval and grant checklist as an attachment? (required)
• Solicitation Timeline
• What is your desired solicitation post date? (required)
• Will there be a pre-bid/proposal meeting for this solicitation? (required)
• Will the pre-bid/proposal meeting require mandatory attendance from the contractors? (required)
• What is your desired contract award date? (required)
• Contractor Qualifications
• Are there minimum qualification requirements for the contractor that should be included in the solicitation? (required)
• What are the minimum qualifications required by the contractor? (required)
• Will the contractor be required to provide a copy certain licenses or certifications with their response? (required)
• Will the contractor need internal access to city facilities? (required)
• Will background checks need to be required and provided by the contractor? (required)
• Is there a Disadvantaged Business Enterprise (DBE) requirement? (required)
• What is the DBE percentage required for the solicitation? (required)
• Is a Bid Bond Required? (required)
• What is the percentage of the bid bond? (required)
• Will liquidated damages be included in this solicitation? (required)
• What is the cost per day for liquidated damages? (required)
• Will this project involve software implementation or IT's services? (required)
• Contract Start Date —

  Answer format: Month DD, YYYY

  Example: May 01, 2024

• Contract End Date —

  Answer format: Month DD, YYYY

  Example: April 30, 2027

• Contract Term —

  Answer Format: xxx (x) years

  Example: three (3) years

Questions & Answers