More on the ERS health insurance issue

[TexasTowelie]

The following is Blue Cross’s position on the cost to the state of UnitedHealthcare’s proposal compared to its own. Of course, if United wishes to provide a rebuttal, I will publish that. I remain concerned about the process that led to UnitedHealthcare’s getting the contract.

Flawed analysis could cost the state and its employees $1 billion

Contract was awarded on promises rather than actual data

The Employees Retirement System of Texas (ERS) announced last week that it awarded its health plan contract, covering roughly 440,000 State of Texas employees, retirees, and dependents to UnitedHealthcare. ERS cited that the move from Blue Cross and Blue Shield of Texas (BCBSTX) to UnitedHealthcare would produce $41 million in savings – almost half of these savings are from an expected penalty from UnitedHealthcare because ERS expects UnitedHealthcare to miss their claims cost projections in the first year.

http://www.texasmonthly.com/blogs/burkablog/

[font color=green]There is plenty of commentary on the burkablog that may be of interest to current and retired state employees. ERS indicated that 9,700 members will have to change their primary care physicians and that $450 million will be shifted to state employees and retirees.[/font]

[sonias]

1. "cost the state and its employees $1 billion"

Right there - that's the key. Once again this kind of shenanigans proves that the republican thugs in office are making out like bandits. Shuffling money to their corporate friends and probably getting some kind of secret kickback in return. While the Texas taxpayers and state employees get left holding the bag. Paying more for probably less service.

Same as it ever was.....

right there with you!

[TexasTowelie]

2. Blue Cross girds for battle with ERS and UHC

From the burka blog, Blue Cross released the following statement:

For 32 years, Blue Cross Blue Shield of Texas (BCBSTX) has been honored to administer healthcare benefits for the HealthSelect of Texas health plan of the Employees Retirement System of Texas (ERS). BCBSTX has consistently provided Texas state employees, retirees and their families with broad access to quality, affordable healthcare. Per BCBSTX’s most recent annual survey of benefits coordinators and ERS staff, BCBSTX received 93.5% “excellent” or “very good” service ratings.

To protect the interests of both the state and ERS participants, today BCBSTX is filing a formal request to re-examine the process through which ERS recently selected United Healthcare Services, Inc. (United) to become the third-party administrator for the HealthSelect plan. Because of our experience with ERS and its participants, providers and others over the last three decades, we are deeply concerned with the impact ERS’ decision will have on the state of Texas and ERS participants.

Here is the declaration of war:

Our request seeks to suspend the decision and allow for a transparent and thorough reexamination of all data and information presented during the proposal process, as well as the process itself, to protect the interests of both the state and ERS participants.

http://www.texasmonthly.com/blogs/burkablog/

[sonias]

3. "transparent and thorough reexamination"

You would hope that was the very least we could ask for. I'm not holding my breath on anyone putting all the information out there.\

I guess Blue Cross didn't pony up enough "contributions" to Perry and his minions making the decision.

[TexasTowelie]

4. Paul Burka heard from the governor's office yesterday!

A few minutes ago (around 4 p.m.), I received a call from Allison Castle, a spokesperson for Governor Perry. She wished to make several points about my writing on the subject of the ERS health insurance contract. Her main point is that the governor has only one appointment on the ERS board. Speaker Straus and Chief Justice Jefferson also have appointments. The other three members are elected by members of ERS.

Ms. Castle also said that Governor Perry had “no prior knowledge” of the award of the contract to UnitedHealthcare. She asked that I call the governor’s office for comment in the future.

She further objected to my characterization, in a comment that I posted, that the award of the contract to the governor’s former chief of staff was an example of “crony capitalism.” These are the relevant parts of the conversation. I appreciate her call — really — and I will continue to monitor developments in the battle over the contract.

Uh huh.

[sonias]

5. Wow you're rattling some cages I see

If it walks like a crony capitalism, and it talks like crony capitalism, and it takes money like crony capitalism - guess what - it's crony capitalism Perry.

[TexasTowelie]

6. Wrong Paul!

OMG, that sounds too much like Ron Paul.

I wish that I could take credit for Burka's blogs and rattling the governor, but I'm just the cut-and-paste guy that makes a few asinine comments when I feel like it.

[sonias]

7. Oops

Now I'm talking like ricky perry.