The state has chosen Delta Dental of Rhode Island to provide dental coverage for employees and their dependents, about 42,000 people, for three years starting Jan. 1, in a $36.2-million deal that cuts Blue Cross & Blue Shield of Rhode Island’s last tie with state workers.
Until this spring, state workers and their families got both their health and dental coverage from Blue Cross. But after a messy bidding process that ended up in Superior Court, UnitedHealthcare of New England won the health contract, valued at $674 million, including $23.5 million in administrative fees.
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This time, there was no legal wrangling – just a $36.2-million bid from Delta Dental, and a $40.4-million bid from Blue Cross. Aided by benefits consultants Hewitt Associates and a committee of state employees, the state Department of Administration determined that the Delta Dental bid was not only lower, but it met quality and service expectations.
“It’s a win-win for all Rhode Islanders,” Gov. Donald L. Carcieri said in a news release.
“Our state employees get all of the benefits that come with Delta Dental’s service, while saving Rhode Island taxpayers $4.2 million. Delta Dental has assured the state that there will be a seamless transition with no disruption in service.”
Delta Dental is the Rhode Island market leader when it comes to dental insurance, with more than 541,000 members last year, according to a report filed with the state. The PBN was unable to obtain total dental enrollment figures for Blue Cross, which often covers both health and dental insurance for its members. But Blue Cross’s dental-only membership, according to a report filed with the state, was just under 39,000 last year.
Asked whether Blue Cross was concerned about losing ground in the government employee market, spokeswoman Kim Keough said no, “We win and lose contracts every day. It’s the normal course of business.”
As for the state contract, she said, “We’re disappointed, but we also understand the decision.” Blue Cross couldn’t bid any lower, she added, because it already lost $900,000 last year on this account, and looking forward, “We didn’t want to have the rest of our business subsidize this one particular piece.”
