Aetna sues New York City, union leaders over Medicare bidding process

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Aetna has filed a lawsuit against New York City and various union leaders over what she claims is a “flawed” bidding process for the city’s $ 34 billion Medicare contract.

The insurer filed a complaint earlier this month after losing the bidding process to Alliance, a consortium that includes Anthem / Blue Cross Blue Shield and Emblem Health, according to the New York Post.

The lawsuit targets both the city and the municipal labor committee, accusing them of unfairly promoting Alliance’s bid and violating procurement processes.

“OLR [the city’s Office of Labor Relations] selected an inexperienced and unqualified bidder in a procurement process that violated New York procurement law, lacked transparency, and violated the principles of public trust and fairness for a market that could last up to a minimum of five years or up to eleven years and generate $ 34 billion in claims revenue, ”the lawsuit said.

Specifically, the lawsuit claims that Aetna’s numbers were leaked at a union meeting and that Alliance oversold a Colorado contract to meet a registration requirement, presented a more expensive plan, and was ultimately selected by a state arbitrator, who was not mentioned as part of the procurement. to treat.

A spokesperson for the Alliance said the consortium is not commenting on pending litigation.


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