Blue Cross NC, a Durham-based insurance company that has long managed North Carolina’s state health plan, filed a protest Thursday appealing the state’s decision to replace it with Etna.
The protest says North Carolina’s request for proposals, or RFP, “represented a significant departure from the State Health Plan’s previous procurement and contracting process.” Sara Langa Blue Cross NC spokesperson said in a press release.
The company further accused the state of making its decision based on “limited information and arbitrary scoring.”
“Blue Cross NC is proud of its long history of serving North Carolina teachers, state employees, first responders, county and city employees, and their families,” said Dr. Tunde Sotunde, president and CEO of Blue Cross NC, in the release. “Members of the State Health Plan are more than customers, they are our neighbors, friends and family, and we filed this protest to ensure the best outcome for them, for taxpayers, and for our state.”
READ MORE: What NC teachers, state employees and retirees need to know about the health insurance change
North Carolina Treasurer Dale Folwell announced the decision of the Board of Directors of the National Health Plan January 4 to replace blue cross with Etna. The decision sparked immediate consternation and speculation from many state employees as to whether the move was in their best interest.
But Folwell argued that the change would save money and improve access to health care for state workers.
” In partnership with Etnawhich already employs more than 10,000 people in North Carolinawill create many new opportunities for the Plan and the members we serve,” he said in a statement.
In response to Blue Cross NC’s protest, Folwell upheld his department’s decision and reaffirmed his commitment to transparency, a frequent theme in his speeches.
“We welcome the opportunity to engage in an evidence-based, thoughtful, and transparent review of the State Health Plan contracting process for third-party administration services that will be effective in two years,” said Folwell said in a statement. “Just like Blue Cross Blue Shield of North Carolina has the right to point the finger at everyone for losing the contract after 44 years, the state health plan, board of directorsthe professional staff and I all have a duty to seek the best financial value and member service for those who teach, protect and serve and taxpayers like them.
Lang questioned why the RFP, during the bidding process, reduced the company’s assessment “to a list of yes or no questions” and did not collect “any other information or details about service levels and capabilities”.
In an email to The News & Observer, jim bostianfrom Etna North Carolina president, said the company “intends to deliver” on its proposal, ensuring that state employees have access to affordable, high-quality benefits.
“The hundreds of Etna employees dedicated to this smooth transition will continue their work without distraction,” Bostian said.
What happens next
Following Blue Cross NC’s formal protest, the state can either choose to accept the company’s meeting request or reject the appeal within 10 days, depending on the RFP.
“If the protest meeting is granted, the executive administrator will attempt to schedule the meeting within 30 calendar days of receipt of the letter, or as soon as practicable thereafter,” the RFP says. “Within 10 calendar days from the date of the protest meeting, the Executive Administrator will respond to the Supplier in writing with the Executive Administrator’s decision.”
State Health Plan Director Sam Wattsthe executive administrator tasked with evaluating protest meeting requests, said Thursday he could not comment at the time beyond Folwell’s latest statement.
Blue Cross NC also said that while its first step is appeal through the Treasurer’s Office, it will pursue other available remedies. When asked what those remedies were, Lang said she should pursue the issue, but did not respond to subsequent inquiries on the matter.
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