Health Alliance loses state employees contract
URBANA -- The state of Illinois says it plans to save more than $1 billion on health benefits for state employees, their dependents and retirees through new contracts with managed care organizations starting July 1-- but Health Alliance Medical Plans isn't one of the choices.
The state Department of Healthcare and Family Services announced its intention to award four new contracts, two of them new HMO contracts going to BlueCross Blue Shield: BCBS HMO Illinois and BCBS Blue Advantage.
The other two contracts would go to HealthLink and PersonalCare.
All contracts were chosen through competitive requests for proposal. Losing health plans have up to 14 days to protest the choices.
The plans will also provide health benefits for members of the Local Government Health Plan, the Teachers' Retirement Insurance Program and College Insurance Program, and are expected to save the state about $102 million in the fiscal year starting July 1 and more than $1 billion over the 10-year life of the contracts, according to state officials.
Health Alliance is currently one of five benefit plan administrators for state employees and their dependents and covers 99,474 people through state contracts, according to company spokeswoman Jane Hayes.
That's a huge piece of the Urbana company's business. Health Alliance has about 340,000 total members, Hayes said.