West Virginia’s selection of a Maryland company to manage a new health insurance program for retired public workers is being challenged by two other companies that sought the work.
The Public Employees Insurance Agency awarded the annual contract to Bethesda, Md.-based Coventry Health Care to manage the Medicare Advantage program for 35,000 retirees who are eligible for Medicare.
Humana Inc. of Louisville, Ky., and Pittsburgh-based Highmark Health Insurance Co. have each filed formal protests challenging the decision.
Humana claims the bidding process contained technical errors that should be reviewed. Its $72.3 million bid received 92 out of a possible 100 points from the PEIA, while Coventry’s $83.3 million bid received 93 points.
“Because it was such a close bidding process – one point difference – and because the potential savings is $11 million, we felt it should be reviewed,” said Nick Casey, a local lawyer representing Humana who also is chairman of the state Democratic Party.
Highmark, whose bid was disqualified, contends that the PEIA failed to notify it of changes in the agency’s request for proposals.
Department of Administration spokeswoman Diane Holley said the protests are being reviewed.
The PEIA Finance Board approved Medicare Advantage in December in response to a new federal funding program that gives the state lump-sum payments for covering Medicare retirees.
Medicare Advantage is expected to draw an additional $50 million to $60 million in federal funding to the state, PEIA said.
Information from: The Charleston Gazette,
http://www.wvgazette.com
Topics Virginia Maryland West Virginia
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