FILE - In this Aug. 5, 2010, file photo, a pharmacy technician poses for a picture with hydrocodone and acetaminophen tablets, also known as Vicodin, at the Oklahoma Hospital Discount Pharmacy in Edmond, Okla. Opioids including Vicodin and fentanyl patches worked no better than Tylenol and other over-the-counter pills at relieving chronic back pain and hip and knee arthritis in a year-long study of mostly men at Minneapolis VA clinics. Both groups had slight improvement. (AP Photo/Sue Ogrocki, File)

LANSING — The Michigan Department of Health and Human Services (MDHHS) has issued a request for proposal (RFP) for entities interested in serving as the state’s Pharmacy Benefit Administrator. The initial contract will be for three years through 2029, with the potential for four additional years.

MDHHS pharmacy programs provide prescription drug coverage for individuals enrolled in Medicaid and related health programs. In 2024, more than 24.5 million claims were processed and more than $2 billion in rebates were invoiced, highlighting the critical need for experienced vendors to manage these complex operations.

The Pharmacy Benefit Administrator provides pharmacy point-of-sale claims processing, prior authorization, clinical advisory support and Medicaid drug rebate administration services for MDHHS. Vendors can bid on either the claims processing component or drug rebate administration component separately, or as a combined proposal.

“Our priority is ensuring Michigan residents enrolled in Medicaid and other programs can access the medications they need consistently, affordably and without unnecessary barriers,” said MDHHS Director Elizabeth Hertel.

The Michigan Department of Technology, Management & Budget will manage the request for proposal process on behalf of MDHHS. The RFP is posted on the state’s SIGMA Vendor-Self Service system online. Interested bidders are encouraged to refer to the proposal instructions for additional information regarding submission of questions and deadlines.

To bid on proposals, all vendors must first be registered with SIGMA Vendor Self-Service. Registration is free, and information on how to register and obtain an account