United HealthCare Services, Inc. Awarded HealthSelect Contract

United HealthCare Services, Inc. Awarded HealthSelect^SM of Texas Contract

On February 21, 2012, the ERS Board of Trustees agreed to enter into contract negotiations with United HealthCare Services, Inc. to serve as the third party administrator (TPA) for the self-funded HealthSelect^SM of Texas health plan, starting September 1, 2012.The United HealthCare Services, Inc. call center and claims processing unit is located in San Antonio, Texas.

ERS rebids Texas Employee Group Benefit Program (GBP) contracts regularly to ensure members get quality benefits at a reasonable cost. United HealthCare Services was selected after a rigorous eight-month selection process.

HealthSelect is a self-funded managed care point-of-service (POS) plan. The ERS Board of Trustees and Texas Legislature determine the benefits covered by HealthSelect within the available funding. Because ERS controls the plan design, a change in administrator does not mean that benefits will change. The HealthSelect administrator, currently Blue Cross and Blue Shield of Texas, is contracted to pay claims, provide customer service, offer health and wellness programs, and manage the HealthSelect provider network.

The new contract is expected to save $41 million through lower administrative costs and efficient care management. Saving money for the program benefits all HealthSelect members. It helps offset the rising cost of medical care. While it can help lower the rate of contribution increases and the need for design changes that shift costs to members, it will not prevent these types of changes.

If you are a member of the Humana Medicare Advantage Plan, Scott and White Health Plans, or Community First HMO, this administrative change does not affect you.

If you are a HealthSelect member, read more...