A new audit finds serious problems with the way Illinois awarded $7 billion in contracts for state employees' health insurance.In a report released Wednesday, Auditor General Bill Holland says Illinois awarded Blue Cross Blue Shield contracts in 24 counties where it didn't have primary care doctors. The auditalso reveals counties were awarded to Health Link that the company did not even bid on. The audit cites other problems, including that the state's Department of Healthcare and Family Services used a consulting firm with business ties to insurers.
The audit says the problems affect more than 400,000 employees and their dependents. The contracts have been challenged in court by insurers upset they weren't chosen by the state. In a written response, Department of Healthcare and Family Services Director Julie Hamos says the overall procurement process was executed in a fair and competitive manner.
