COMPTROLLER LEMBO ANNOUNCES PRELIMINARY AGREEMENT WITH ANTHEM AND UNITEDHEALTH TO ADMINISTER STATE HEALTH PLAN
FOR IMMEDIATE RELEASE
Friday, March 13, 2015
Comptroller Kevin Lembo today announced that the state has concluded its competitive bidding process and selected Anthem BlueCross and BlueShield and UnitedHealth Group to administer the state's self-insured medical benefits plan for state employees, retirees and their dependents.
The preliminary agreements are subject to final negotiations, and the term of the contracts will be up to five years.
"Our goal during this competitive bidding process and ongoing contract negotiations is to identify new and innovative ways to deliver better health care at a better price," Lembo said. "We are confident that this is the best choice on behalf of the state - and the individuals and families served by the plan."
The Office of the State Comptroller issued a Request for Proposals (RFP) in November. Lembo said his office, in coordination with the state's Health Care Cost Containment Committee (HCCCC) -- a partnership between labor and management, considered all proposals - spent months on a thorough review process to consider all options.
"This decision was based on careful review and a commitment by the carriers to work in partnership with us to develop more value-based purchasing of health-care services - higher quality at a lower cost," Lembo said. "We want better contracting for mental health services and integration of those services with primary care; and stronger chronic disease management by physicians."
The preliminary agreements with Anthem and UnitedHealth to manage the state's medical plan follow newly renegotiated agreements, some of which are ongoing, for the state's pharmacy, dental and defined contribution plans on behalf of employees, retirees and dependents.
The state's existing contracts for the medical plan -- that expire June 30 -- are also with Anthem and UnitedHealth. The structure of the benefits and plan designs offered by both are the same; the only substantive difference between the benefit options are network size and pricing offered by each carrier.
In addition to providing benefits to state employees, retirees and dependents, the state's medical plan also covers employees in the probate court system, General Assembly members, former legislators, and other groups, as authorized by statute.
The state also offers medical benefits to local municipalities under the Connecticut Partnership Plan. Those municipalities currently include the City of New London and New London Board of Education, Town of Griswold and Griswold Board of Education, Town of Sprague, Town of Voluntown, Uncas Health District, Town of Union, Town of Bozrah, Valley Council of Governments and Waterbury Housing Authority.