Judge orders city to rebid employee health insurance contract | The Augusta Chronicle

Richmond County Super­i­or Court Judge David Rop­er blasted the Augusta Commission and city procure­ment department in a Wednes­day order demanding the city re-bid its new employee health insurance contract.

Roper’s order instructs the city to seek new bids from insurance providers for a contract to start Jan. 1 and terminate its existing agreement with Blue Cross Blue Shield of Georgia at that time, to ensure no interruption of coverage for the city’s 2,400 employees and their families.

The order comes in response to a lawsuit filed by Aetna subsidiary Meritain Health over Augusta’s award of the contract to administer a new self-funded health insurance pool, valued in excess of $20 million, to Blue Cross, the city’s existing provider.

Meritain protested the bid award last year, but the commission voted to deny the company’s protest and gave the contract to Blue Cross, on the recommendation of an internal selection committee that included Procurement Director Geri Sams and Wells Fargo insurance consultant Lisa Kelley.

Meritain alleged that procurement engaged in “11th hour” manipulation of the bid award, changing contract terms and ranking criteria to benefit Blue Cross, and Roper agreed.

via Judge orders city to rebid employee health insurance contract | The Augusta Chronicle.