HARTFORD, Conn. (WTIC Radio) - After a competitive bidding process, the Office of the State Comptroller has awarded the CVS Health company "Aetna" the new Medicare Advantage contract to administer the state's health plan.
The new three-year contract, according to Comptroller Natalie Braswell, is expected to save an estimated $400 million than actuaries had originally projected.
"This year, we spent about $226 million. Next year, when this agreement begins, we'll spend about $100 million less, reducing cost by over 50% for our retiree population," Braswell said.
Additionally, the savings are estimated to reduce the state's unfunded Other Post-Employment Benefits (OPEB) liability by about $7.5 billion, she said.
Braswell is reassuring retirees currently enrolled in the state's health plan that their benefits will remain consistent.
"I look forward to working with Aetna to give our retired workers the quality and dependable health care they deserve," she said.
The final contract is still under negotiation, but Braswell said it's expected to go in effect on January 1, 2023.
Currently enrolled retirees will be automatically transitioned from UnitedHealthcare to Aetna once the contract is implemented.