SPRINGFIELD — Area lawmakers still have plenty of questions about the tentative decision to switch health insurance providers for more than 100,000 state employees, dependents and retirees.

During a crowded hearing in the Capitol that ended at nearly 9 p.m. Tuesday, legislators voiced grave concerns about the state's decision to dump Urbana-based Health Alliance as one of its health care providers, as well as estimates of $102 million in cost savings next year from the decision.

In fact, state Reps. Chapin Rose, R-Mahomet, and Chad Hays, R-Catlin, said they found the decision by the state Department of Healthcare and Family Services so troubling that they believe state officials need to start the process anew.

Both Health Alliance and Humana have filed protests challenging the decision. One contention is that the Blue Cross Blue Shield HMO plans tentatively chosen by the state don't have a network of physician providers in most downstate counties. Blue Cross Blue Shield provides services in just 38 counties.

"Let's start over," said Rose. "Just start over with the correct set of assumptions and just rebid it. There's nothing that says you can't pull a procurement."

"I hold out hope," Hays said, "that the individuals who will hear the protest will come to the conclusion that the network downstate does not exist, the savings that are being projected don't add up and the only reasonable thing to do is to open the process back up."

Hays sat through the nearly five-hour hearing Tuesday and said he came out of it convinced that state officials erred in their decision.

"I think that most people learned a great deal more than we knew before," he said. "This is one of those matters where the more information you get, the worse the decision looks. I thought it was a poor decision when I first heard about it. I'm convinced it was a horrible decision now."

State Rep, Naomi Jakobsson, D-Urbana, who chaired Tuesday's hearing, said she wants to know how customers are supposed to obtain health care beginning July 1 from a network that doesn't exist.

"The (request for proposals) said networks had to be in place by January 1st of this year, and clearly they're not," she said. "And yet when (HFS officials) wiggled around and tried to say that they are, they couldn't tell us where they are, they couldn't show us where they are and I think it's because they aren't there."

Both Hays and state Rep. Jason Barickman, R-Champaign, said state officials may be going overboard in trying to cut costs.

"My guess is that there is likely no intentional wrongdoing, but there is a tremendous amount of pressure on everyone to find cost savings," Barickman said. "What I fear here is that we had a state agency start running down a path, thinking that they found a way to save some dollars and I commend them for thinking that way but at the end of the end of the day, I don't think their calculations account for the reality of where (health care customers) will go and what that will cost the state."

Hays agreed. "I've been talking about the need for the state to live within its means, to get our financial house in order," he said. "I am appreciative of anyone who makes a good-faith attempt to save the state some money, but in this case, I think the numbers really don't add up."

During Tuesday night's hearing, the chief legal counsel for the Department of Healthcare and Family Services, Jeanette Badrov, was asked repeatedly to justify the $102 million in annual savings cited by the agency in its April 5 award announcement.

"Because of the protest, I cannot comment further on it," Badrov said.

The Health Alliance and Humana protests plus a 30-day review of the final contract award by the Legislature's Commission on Government Forecasting and Accountability threatens to run into the July 1 start date of the new health insurance contract plus next week's beginning of a one-month period for state employees and retirees to enroll in new coverage.

By law, the employee benefit choice period must begin on May 1, said Alka Nayyar, a spokeswoman for the state Department of Central Management Services.

But once a final decision is made regarding challenges to the health insurance award, "we can make any necessary adjustments to the ending date of the benefit choice period to ensure that members have sufficient time to make an informed decision regarding their health care benefits," Nayyar said. "Once a final decision is made after the conclusion of the protest period, any changes to the program will be explained, and CMS can make adjustments on the ending date to allow enrollees time to make their choices."

Tuesday's legislative hearing on the health insurance award was unusual in a number of respects. It was held in a committee room packed not with lobbyists but with about 200 citizens.

And it featured several instances where lawmakers were applauded by citizens. "I suspect that there will be very few occasions where you have a roomful of people, and more people waiting to get in, and every time you speak, it erupts in applause as if the Blackhawks had just scored the winning goal in the playoffs," said Hays. "I've got to believe that doesn't happen very often."

Finally, most of the citizens in the room seemed to be there to show support for Health Alliance.

"HMOs are the most vilified organs of health care distribution in America today," said Rep. Richard Morthland, R-Moline. "And yet we have a room full of people who apparently are all dying to stay (laughter) ... who are going to great lengths to stay in your HMO."