The state of Georgia has some 650,000 people that are covered by the state’s health benefits. This includes teachers, state employees, retirees, school staff and dependents. Therefore, it may not surprise anyone that there could be business litigation over what company or companies get the state’s benefits contract.
The contract that is set to begin on Jan. 1, 2014, was recently awarded to Blue Cross/Blue Shield of Georgia and recently affirmed by the Department of Community Health. This decision has drawn strong objections from the two companies that have the contract through the end of this year, United Healthcare and Cigna. United Healthcare has alleged that the bidding process for the contract was faulty.
Blue Cross/Blue Shield says that it complied with Georgia’s requirements throughout the bidding process. The company says it will be able to save the state well over $1.5 billion. Reportedly, this has medical providers concerned that just one healthcare insurer will result in them receiving lower payments; especially considering the amount of money the company says it can save the state.
The disagreements among these healthcare insurers could end up in business litigation. When companies are in competition for something such as a government contract, it is not uncommon for a party that is not awarded the contract to continue the fight. There is always the possibility that company could get a second chance to bid for the contract. If the court determines that the bidding process was faulty, the state may be required to begin the process of choosing its insurer a second time.
Source: gpb.org, Court Fight Likely After State Affirms Benefit Contract, Andy Miller, Nov. 8, 2013