State to rebid part of health plan contract

State to rebid part of health plan contract

ATLANTA (AP) - Georgia Community Health Commissioner Clyde Reese says the state will seek new bids on part of the lucrative state health benefits plan after a major insurance company had accused the agency of rigging the process.

Reese told the Atlanta-Journal Constitution this week (http://bit.ly/11hsZRy) the department will be seeking guidance from the attorney general's office in designing the bidding process.

The newspaper reported earlier that UnitedHealthcare had claimed the department staged a secret bid that cut them out of competing for the business and selected Blue Cross and Blue Shield of Georgia.

State officials had said Blue Cross projected savings of $500 million a year in part by reducing payments to health care providers.

The state spends more than $3 billion annually covering medical costs for workers and retirees.

 

Information from: The Atlanta Journal-Constitution, http://www.ajc.com

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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