August 13, 2012
FOR IMMEDIATE RELEASE
State Health Plan Board Awards Contracts for Third Party
Medical Claims, Related Services
New Plan Options to be Rolled Out Next Year
RALEIGH – The North Carolina Department of State Treasurer
announced today that the State Health Plan Board of Trustees approved the award
of multiple contracts for health care claims and related services.
- The Third Party
Administration Services contract was awarded to Blue Cross Blue Shield of North
Carolina with services beginning July 1, 2013. Blue Cross Blue Shield of North
Carolina will provide a network of health care providers, process claims and
provide premium billing services.
- The Eligibility
and Enrollment Services contract was awarded to Benefitfocus with services
beginning July 1, 2013. Benefitfocus will provide eligibility and enrollment
services for active and retired state employees. The Plan and the N.C. Office
of State Personnel (OSP) partnered for this portion of the request for
proposals (RFP) to streamline the enrollment process for all Plan members and
OSP NCFlex participants.
- The COBRA
Administration and Individual Billing Services contract was awarded to
COBRAGuard with services beginning July 1, 2013. COBRAGuard will provide a full
range of COBRA administration and direct billing services for
Reduction-In-Force (RIF) members, former legislators and their surviving
- The Medicare
Advantage Fully Insured Plan and Related Services contracts were awarded to
Humana and United Healthcare and will be an optional service beginning January
2014. In addition to claims processing and customer service, Medicare Advantage
offers services to help Medicare Primary members effectively manage their
health. By awarding two contracts for this product, the Plan and its
Medicare-eligible members will have greater flexibility and choice.
A listing of bidders by component is outlined in the table
|Blue Cross Blue Shield of NC
|Blue Cross Blue Shield of NC
Blue Cross Blue Shield of NC
The Board made its decision based on a desire to offer
quality health benefits, provide an excellent member experience, and ensure
services are provided at a competitive cost. The potential annual
administrative cost savings under the new contracts will be approximately $22.4
million annually, which is a reduction of approximately 19 percent.
There was a high level of commitment by the new Board to a
competitive and transparent bid process. The RFP was issued in February, and
technical proposals for all components were received on May 2. The RFP was
designed to offer the Board of Trustees the flexibility to consider different
health care plans that will be in the best interest of members. The intent of
the RFP was to solicit partners who are industry leaders equipped to provide
customer service, technology, staff and a collaborative approach needed to
support the Plan’s employers and members. All contracts have a three and half
year term except for Medicare Advantage, which has a three year term.
The State Health Plan provides health care coverage to more
than 663,000 teachers, state employees, retirees, current and former lawmakers,
state university and community college personnel, state hospital staff and
their dependents. The Plan became a division of the Department of State
Treasurer effective Jan. 1, 2012.