PROVIDENCE – Blue Cross & Blue Shield of Rhode Island has been selected to administer the state’s medical plans for employees and non-Medicare-eligible retirees, the R.I. Department of Administration announced Tuesday.
BCBSRI replaces UnitedHealthcare, which served as Rhode Island’s third-party medical plan administrator since 2005.
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CVS Caremark was selected to return as the state’s pharmacy administrator, a role it has held since 2014.
A contract with BCBSRI is expected to be finalized this fall, Department of Administration spokeswoman Brenna McCabe said.
The three-year contract will go into effect at the start of 2020 and may be renewed for up to two year-long periods.
Selected through a competitive bidding process, BCBSRI projected fees of about $3.9 million annually through the next three years. United Healthcare estimated that it would charge the state about $6 million in annual fees over the same time span, and Aetna’s projection was the highest, at $7.4 million in annual charges.
BCBSRI beat out bids by UnitedHealthcare, Tufts Benefit Administrators and Aetna, according to the department.
Of the 17,000 people eligible for state medical plans, about 14,500 are enrolled, McCabe said.
CVS Caremark bid against BCBSRI, Express Scripts, Tufts Benefit Administrators and United Healthcare.
“Both companies have deep ties to the community and will provide significant value to our members and to the taxpayers of Rhode Island,” said Director of Administration Michael DiBiase.
Plan designs and co-pays for state medical and pharmacy coverage will remain the same for state employees and non-Medicare-eligible retirees, the department said.
Elizabeth Graham is a PBN staff writer. She can be reached at Graham@PBN.com.
