Audit Questions $7B in Ill. Insurance Contracts

March 07, 2012

Officials at an Illinois company that lost a bid for state employees' insurance contracts say they're not surprised by an audit critical of the procurement process.

The state audit was released Wednesday. It finds serious problems with the way Illinois awarded $7 billion in contracts for state workers' health insurance.

A spokeswoman for Urbana-based Health Alliance says many of the auditor's findings were pointed out in the company's original protest of the procurement.

The audit comes as the state is settling a lawsuit by Health Alliance over the contracts.

Health Alliance spokeswoman Jocelyn Browning says the company is focused on submitting a bid in a new request for proposals that's part of the settlement being worked out.

Health Alliance insures about 90,000 state employees and their dependents.

Story source: AP

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