LINCOLN, Neb. (AP) -- The state of Nebraska is switching health care providers in a move that will save an estimated $8 million a year without major disruptions for employees, a state administrator said Wednesday.
Department of Administrative Services Director Carlos Castillo said the change to United Health Care was based on the expected yearly savings for the state and its employees. Nebraska has been a Blue Cross/Blue Shield client for at least 25 years.
Castillo said United Health Care has established a large network in Nebraska, similar to Blue Cross/Blue Shield, so the vast majority of employees will see no disruption in their services. Some employees may have to go to a different provider, but Castillo said the networks are "pretty much the same."
"It just made financial sense for us," Castillo said. "They've done a lot to grow their network in Nebraska over the years, and so their network is comparable to Blue Cross/Blue Shield."
Nebraska self-insures, but uses the insurance company to administer its plans. The state of Nebraska and its employees spend about $184 million annually on coverage. The state pays 79 percent of premiums, and employees cover 21 percent.
The plans cover approximately 30,000 state employees and dependents. The new agreement will take effect July 1, once the contract is finalized.
The plan is also expected to let employees fill their prescriptions at Walgreens, which had been removed from the existing state plan because of a contract dispute with Express Scripts, a national pharmacy benefit manager. More than half of the enrolled state employees with prescriptions were filling them at the drugstore chain.
"When that stopped at the end of December, it was a huge, huge change — and employees were very vocal about it," Castillo said.
The change will not apply to Nebraska State Troopers, or employees within the University of Nebraska or the Nebraska State College system, all of whom have their own plans.
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