Regence Heads to Court in September
A lawsuit against the state for stripping lucrative state employee contract will get its day in court
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Regence wants the judge to stop state officials from awarding a lucrative contract to its competitor, Providence Health Plans. Following an extensive bidding process, Regence lost its contract with the Public Employees Benefit Board to insure over 120,000 state employees and their dependents, which is worth millions of dollars.
Regence accuses state officials of violating its own bid procedures and basing its choice on incorrect cost comparisons and unfair conclusions.
On Sept. 3, the judge will also determine whether to move the court proceedings to Marion County because that’s where similar disputes have been resolved, said Keith Dubanevich, special counsel to Attorney General John Kroger.
State officials will begin open enrollment in Oregon with Providence assuming the two-year contract in January.
Regence had protested the board’s decision in May, but the board refused to reconsider since Regence had participated in the selection process and had submitted a detailed bid proposal.
According to Joan Kapowich, PEBB administrator who responded to Regence’s protest on May 20, “Regence cannot now complain about having placed second in a race that set in motion and in which it participated voluntarily every step of the way.”
By having two competing renewal offers, she added, the board was able to “negotiate a much better deal.” Regence, on the other hand, “fell short in its ability to accommodate to the new budgetary environment in which the board must operate.”
For related stories about Regence's dispute with PEBB, a story that broke here at TheLundReport before any other media outlet, click here.
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