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Judge tells state to reconsider contract

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Posted: Jun 22, 2010 6:45 AM by Andrea Fontenot
Source: Associated Press

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Topics: contract, order, judge, Blue Cross and Blue Shield of Louisiana, HMO, health plan, workers, retirees, dependents, Humana

A judge has ordered the state to reconsider its contract with Blue Cross and Blue Shield of Louisiana to administer the HMO health plan for state workers, retirees and their dependents.

Humana previously held the contract, which is scheduled to take effect July 1.

State District Judge Mike Caldwell says Humana had raised some valid issues concerning the awarding of the contract, and sent the issue back to the Louisiana Division of Administration and the state Office of Group Benefits.

OGB Chief Executive Officer Tommy Teague said last month that the Blue Cross contract would save the state $34 million in the first year.

Humana attorney Phil Franco argued the contract was "illegally awarded" to Blue Cross.

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