ST. PAUL-An investigation by the state auditor’s office found that cooperative groups set up by school districts and local governments to get better deals on health insurance are having the opposite effect.
The auditor’s report found that a consultant hired by the so-called service cooperatives to help develop bids for health care coverage had at the same time a consultant’s contract with Blue Cross/Blue Shield-the insurance carrier for each of the cooperatives.
The report also found that the cooperatives are spending program funds, which are required to be spent on healthcare activities, on other purposes.
That includes training, employee banquets and extra-curricular activities, the report found.
Was this article valuable?
Here are more articles you may enjoy.
Meta Stares Down Trillion-Dollar Threat as Landmark Social Media Trial Begins 
State Farm Must Give Up Trade Secrets in Claims Lawsuits, but Under Court Review 
Allstate Introduces Large Language Model, ALLIE 
11 New Firms Join Insurance Journal’s Top 100 Independent Agencies From This Issue
