Blue Cross Blue Shield of North Carolina owes the state’s residents more than $2.05 mn from the carriers failed lawsuit over the North Carolina State Health Plan awarding contracts to Aetna, according to a letter from Dale Folwell, state treasurer, according to BestWire. This was outlined in a letter from State Treasurer Dale Folwell to BCBS North Carolina President Tunde Sotunde.
Folwell stated the contract was awarded to Aetna through a “well-reasoned and correct procurement process,” with the plan’s board properly approving Aetna’s bid.
BCBS had argued in its lawsuit that the board failed to follow proper procedures and acted arbitrarily in scoring the proposals. However, in July, a judge ruled the board acted appropriately in awarding the contract to Aetna.
In the letter, Folwell criticized BCBS leadership for filing the lawsuit instead of taking responsibility for its shortcomings. He urged the company to learn from its mistakes and improve its services.
The case incurred high legal fees for the state because BCBS hired attorney Matt Sawchak, who previously represented the State Health Plan as North Carolina solicitor general. This created a conflict, forcing the state to seek outside legal representation, Folwell explained.
Folwell pointed out that while $2.05 mn may seem minor for a company that paid its CEO over $4 mn in 2021, the amount is significant for the State Health Plan, which is grappling with rising healthcare costs and potential insolvency.
The demand for payment stems from an exit audit conducted on major state contracts. BCBS has 30 days to remit the $2.05 mn. A BCBS spokesperson declined to comment on the demand letter but emphasized the company’s focus on ensuring a smooth transition for State Health Plan members.
