Insurer sues Illinois over new health contracts

SPRINGFIELD — An Urbana insurer is suing the state to block its decision to award health insurance contracts that cover tens of thousands of state employees to other providers.

Health Alliance Medical Plans filed its lawsuit Friday in Springfield. The company claims the bidding process wasn't fair and wants to reverse the award of contracts to Blue Cross and Blue Shield, HealthLink and PersonalCare.

Mike Claffey of the Department of Healthcare and Family Services told The (Champaign) News-Gazette that the department is confident it followed state code. The department says the new deals will save money.

Health Alliance has said the contracts will require many of the 79,000 state employees it insures to travel to see new doctors. Many doctors in the Champaign area have exclusive contracts with Health Alliance.