UnitedHealth: State used faulty contract analysis in Blue Cross' favor

UnitedHealth is protesting its contract loss to Blue Cross Blue Shield of Louisiana to administer employee health insurance plans for state employees.

After the Louisiana Office of Group Benefits (OGB) selected Blue Cross, UnitedHealth submitted a 15-page challenge that accuses the department of a faulty analysis, including using objectionable scoring and "bending over backwards" for Blue Cross, The Advocate reported.

"During these tough financial times when every dollar should count, it is inconceivable that the OGB would fail to scrutinize proposals closely to maximize the bargain it can strike for state taxpayers," UnitedHealth said. 

Although UnitedHealth's contract would have cost $40 million a year, as opposed to Blue Cross's $38 million, UnitedHealth claimed it was the least expensive bidder because Blue Cross used inaccurate numbers.

Moreover, UnitedHealth claims that "OGB turned a blind eye" by allowing Blue Cross to amend its proposal just hours before the agency announced a decision.

Louisiana Gov. Bobby Jindal hopes to save $20 million a year by paying Blue Cross to administer the insurance plans for about 200,000 state employees and their dependents, the Insurance & Financial News reported.

To learn more:
- read The Advocate article
- see the Insurance & Financial Advisor article

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