AFSCME Files Grievance Against State Employee Health Insurance Switch

The Quinn administration's decision to line up new health insurance providers for state employees is now facing a challenge from organized labor.

The American Federation of State County and Municipal Employees has filed a grievance against the state over the decision to drop two longstanding insurance providers.

AFSCME spokesman Anders Lindall says the providers who won the state contracts over Health Alliance and Humana don't cover many of the doctors that state employees have used for years.

"Our grievance seeks a remedy that the current contracts would be extended so -- at a minimum -- that all of those providers could be signed up on similar plans with the new networks, and if they can't be, that Health Alliance would continue to be a contractor for the coming fiscal year," Lindall said.

The state has given employees until June 17 to sign up with a new insurer - AFSCME is advising its 55,000 members to hold off making their benefit choice until right before the deadline.

Lindall charges that the state Department of Healthcare and Family Services hasn't given any evidence that workers will get the same coverage at the same cost as the current plans. He calls that a violation of AFSCME's contract.

The union is also exploring the possibility of a lawsuit. Department of Healthcare and Family Services Director Julie Hamos predicts they won't see much success.

"Losing bidders don't typically do that well in the courts. It's a procurement process. And we followed the law we followed it to a T," said Hamos. "That has now been affirmed. So, anybody can sue, there are a lot of lawyers in Illinois."

Heallth Alliance is exploring legal action of its own. Spokeswoman Jane Hayes the company is examining all options and trying to keep members in mind and what's best for them.

State lawmakers approved a bill that would restore Health Alliance's contract for two more years - but it's possible that governor Pat Quinn could veto the measure. State officials say the new contracts will save Illinois about $100 million over the next year.