Local News
Eyewitness Sports
Medical Coverage
Call For Action
More Details
What's On WPRI
What's On Fox
2 Minute Test Drive
Experts Online
Online Store
Chopper 12
Station Info

MARKETPLACE:  Auto | Jobs | People Search | Personals | Travel | Yellow Pages  November 21, 2004
Education | House & Home | Money | Pets | Recipes | Relationships | What's Next | More Topics...
Blue Cross to Sue to Block Contract Award
Email to a Friend Printer Friendly Version  

PROVIDENCE, R.I. (AP) -- Blue Cross & Blue Shield of Rhode Island on Tuesday said it will sue to block the awarding of a health-care contract for state workers to a competitor.

Gov. Don Carcieri's administration earlier this month awarded the three-year management contract to United Healthcare of New England. The contract would take effect in January. The state on Tuesday denied Blue Cross' protest, which claimed its offer was better for the state than United's proposal.

"We feel the state analysis was wrong. We will be pursuing this in Superior Court," Fraser said.  He said the company will seek a restraining order preventing the contract from being awarded, until a judge can determine whether the state acted properly.

Blue Cross has the current contract for the estimated 25,000 state employees and retirees. In a letter to Blue Cross, Administration Director Beverly Najarian said the state acted "in good faith, complied with all the purchasing statutes, regulations ... and fairly awarded" the contract to United.

Carcieri's office claims United's successful bid offered about $8 million more in savings than did Blue Cross' proposal. Najarian said she would be "astounded if any judge would allow them to put a restraining order on this. My understanding is they would have to have much more substance."

Blue Cross had argued it offered a better deal on drug rebates, savings tied to contractual deals with area hospitals and other benefits. The company also claims United didn't meet certain bid requirements. Najarian said the savings Blue Cross claims the state failed to recognize were projections that were not guaranteed in the company's bid.

"There were no guarantees, no assurances, they were unwilling to take any risk themselves," she said.

United spokeswoman Debora Spano said the company is confident "we've come in with the best bid for the state and taxpayers. In the end it will be proven that we have the best value."

Local News
North Smithfield couple injured after house explodes
Newport Hospital honored for superior nursing care
Rhode Island programs benefit from spending bill
Nineteen adoptions finalized on National Adoption Day
Governor wants lower taxes, but state facing budget shortfall
Nantucket Death Suspect Extradicted from Rhode Island
Cyclist is in critical condition after hitting tractor trailer truck
Rhode Island receives $60,000 for performance arts
Conn. senator introduces bill to protect journalists
East Greenwich man sentenced to prison for filing false returns
National News  more» 
Susan Sarandon, Martin Sheen attend S-O-A protests
Investigation into NBA brawl continues
Watchdog group says pared down budget still has pork
Headline goes here
Detroit zoo considers options for two elderly elephants
Pentagon launches new troop support web site
Recount begins in Washington state governor's race
Dylan's "American Journey" explores an icon's early work
Prosecution accuses defense of abusing court system
D.C.-bound passenger on no-fly list

Turkey Day is Coming
Plan your menu with the help of your community's favorite recipes.
Smile Maintenance
Your smile says a lot about you. Is it saying the right thing?
Send questions and comments about this website to the .
All content © Copyright 2004 WorldNow, WPRI, WNAC and Associated Press. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.