Human Services Commissioner: Health care bidding to save state $240M

The state Human Services commissioner said Thursday that competitive bidding for health care services will save the Minnesota $240 million over the next two years.

Gov. Mark Dayton and Human Services Commissioner Lucinda Jesson said that the initiative is part of a broader plan to save the state money by streamlining services.

The state required HMOs to competitively bid for state contracts in the seven-county metro area. Jesson said the bids will reduce the money taxpayers spend for health care without cutting any services.

"It's a really good thing, I think, for taxpayers and for our enrollees," Jesson said. "It's the start of how we need to rethink purchasing at DHS."

Jesson said HealthPartners and UCare won contracts to provide some services to all of the seven counties, Medica will serve Hennepin County and the department is negotiating with Blue Cross/Blue Shield to provide services in Ramsey and Dakota Counties.