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.