Court dismisses suit alleging 'favoritism' in $237M BCBS Medicaid contract

The Michigan Court of Appeals panel tossed a lawsuit accusing the state of "blatant favoritism" in awarding Blue Cross Blue Shield of Michigan part of a $659 million contract to manage children's Medicaid dental benefits, The Detroit News reports.

MCNA Insurance, a Florida-based company, alleged the state showed favoritism by allowing BCBSM to change its bid for the Healthy Kids Dental contract. MCNA Insurance lost its competing bid to manage the benefits.

Carlos Lacasa, vice president and general counsel for MCNA Insurance, told The Detroit News, "Taxpayers deserve a full accounting of this deeply flawed and highly political bidding process which has undermined Michigan's stated commitment to fairness, transparency and competitive bidding."

Michigan's budget and management department said it followed due process when awarding the $237 million contract to BCBSM instead of MCNA Insurance and other applicants.

MCNA Insurance intends to take its lawsuit to the Michigan Supreme Court, the report states.

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