Health contract reviewed

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AUGUSTA — A special appeals panel Thursday opened a hearing into the contested award of a potentially lucrative state contract to a Blue Cross and Blue Shield of Maine Inc. subsidiary. HMO Maine, the Blue Cross subsidiary, won the contract in April in a second…
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AUGUSTA — A special appeals panel Thursday opened a hearing into the contested award of a potentially lucrative state contract to a Blue Cross and Blue Shield of Maine Inc. subsidiary.

HMO Maine, the Blue Cross subsidiary, won the contract in April in a second round of bidding after it originally priced its offer for providing health maintenance organization services to more than 20,000 state employees and retirees substantially above two competitors.

The award was appealed by the original low bidder, Healthsource Maine Inc. of Yarmouth. Under a new state law, the appeal is being heard by a three-member panel named by state finance officials.

“The committee has two options,” said Assistant Attorney General William Stokes. “It can only do two things. It can validate the contract, or it can invalidate the contract.”

The disputed HMO Maine bid would cost the state $150 a month for individuals electing its coverage and $383 for families. Subscribers and family members seeking HMO coverage are expected to total about 8,000.


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