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Monday, July 29, 2013 - 1:00am

Georgia Seeks New Bids For Health Plan

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.