PROVIDENCE – R.I. Department of Administration Director Beverly Najarian today said the state has agreed to extend its contract with UnitedHealthcare of New England by two years, saving taxpayers another $5.5 million over the life of the contract.
The original three-year contract, effective May 1, 2005, included options for two one-year extensions. Before agreeing to exercise those options, the state negotiated $5.5 million in savings, mostly in increased pharmaceutical rebates.
In the latest agreement, the state’s total rebates amount to about $3.2 million per year. In addition, the insurer agrees to operate a $350,000 per year wellness program at no cost to the state. The program will seek to help people with conditions such as asthma, diabetes and heart disease to avoid complications.
“This is another big win for Rhode Island taxpayers,” Najarian said. Because the contract is structured so cities and towns can contract with UnitedHealthcare at the same administrative rate as the state, the negotiated change could result in millions of dollars in additional savings for Rhode Island communities.
The revised contract will expire June 30, 2010. Further details are available at ri.gov.
