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Monday, July 29, 2013 - 1:00am

Georgia Seeks New Bids For Health Plan

Updated: 4 years ago.
Georgia Community Health Commissioner Clyde Reese (Photo courtesy: Georgia Department of Human Services)

Georgia Community Health Commissioner Clyde Reese says the state will seek new bids on part of the lucrative state health benefits plan after a major insurance company accused the agency of rigging the process.

Reese says the department will be seeking guidance from the attorney general's office in designing the bidding process.

The Atlanta-Journal Constitution reported that United Healthcare claimed the department staged a secret bid that cut them out of competing for the business and Blue Cross and Blue Shield of Georgia was selected.

State officials said Blue Cross projected savings of $500 million a year in part by reducing payments to health care providers.

The state spends more than $3 billion annually covering medical costs for workers and retirees.