Blue Cross Blue Shield Health Insurance is Being Dropped After 25 Years in Favor of UnitedHealthCare Statewide for State Employee’s in Minnesota
San Francisco, CA -- (SBWIRE) -- 02/27/2012 -- Minnesota has announced that they will no longer be providing Blue Cross Blue Shield health insurance policies to their state employees, but will be changing the state employee’s insurance policies over to UnitedHealthCare.
Blue Cross Blue Shield has enjoyed the Minnesota state contract over the past 25 years, but it appears they came up short when negotiating prices against UnitedHealthCare. Minnesota found that they were going to be able to save a great deal of money every year by making the switch, and Blue Cross Blue Shield was unable to come up with competitive numbers.
The Department of Administrative Services Director, Carlos Castillo said, "United is going to save us a substantial amount of money year after year. It's about 5 percent, $8 million a year on average."
While the state was not upset with the treatment that they have received from Blue Cross Blue Shield over the years, in fact it was the exact opposite. The state has been quite pleased with its partnership with Blue Cross Blue Shield, but unfortunately in these tough economic times they cannot ignore such are large savings for the state. While the state is sad to see their partnership with Blue Cross Blue Shield come to an end they have every confidence that UnitedHealthCare will create a great partnership as well.
Employees of the state have been fortunate enough to have been able to deal with the same insurance company over the past 25 years, but they now have to prepare themselves for the transition over to the UnitedHealthCare plans. While Minnesota is well aware that their employees will have many questions for how this is going to affect their cost and coverage, they believe that they will be able to work out everything where the employees will be happy and be able to make a smooth transition into the new policies.
Many of the health care providers in Minnesota accept both Blue Cross Blue Shield insurance as well as UnitedHealthCare which means that the majority of employees will be able to stay with their current providers. The state is hopeful that the new UnitedHealthCare policies will be able to provide the same type of coverage and service for a significantly lower cost to the state. While not everyone will be pleased with this news they are confident that everything will work out to be a financially wise decision.
1HealthInsurance.Org (http://1healthinsurance.org/) is an online resource for free information and news on health insurance.
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