AETNA EDGES BLUE CROSS FOR KEY STATE CONTRACT.

• Author: Campbell, Colin

The State Health Plan's decision to cut ties with Blue Cross Blue Shield after more than 40 years promises to shake up the health care landscape in North Carolina. The Health Plan's governing board has awarded a three-year contract to Aetna starting in 2025. That means 740,000 teachers, state employees, retirees and their dependents will have a new insurance provider, and Durham-based Blue Cross will lose a chunk of business, potentially leading to layoffs.

State Treasurer Dale Folwell said that the new contract "focuses on transparency and lower costs, with the potential administrative cost savings over the course of the contract equaling $140 million."

Details on exactly how Aetna's bid compared to Blue Cross and a third bidder, UnitedHealth, weren't available as of press time because public records haven't been released. Both Blue Cross and UnitedHealth have filed formal appeals contesting the decision, and it's possible the matter could result in lawsuits. Aetna is owned by Woonsocket, Rhode Island-based CVS Health.

For months before the move, staff and board members voiced concerns about the service they were getting from Blue Cross. One board member even suggested firing the company.

State Health Plan executive director Dee Jones mentioned that comment when she announced at Junes board meeting that the plan would open bidding on the contract, with plans to award a new contract in December.

Blue Cross is in the first year of a three-year contract, and the Health Plan has...