Blue Cross and Blue Shield of Minnesota is bringing on 300 employees to manage back-office work for its Medicaid programs, ending its contract with Amerigroup to manage these services, the Star Tribune reported Jan. 19.
According to the Star Tribune, Minnesota's human services department issued eight corrective action plans to BCBS Minnesota between 2018 and 2020, fining the company $13.15 million.
The department said all eight of the action plans were related to the company's transition to Amerigroup.
BCBS Minnesota awarded the contract to Amerigroup, a subsidiary of Elevance Health, in 2018.
Amerigroup told the Star Tribune previous "migration and implementation challenges have since been resolved."
"Blue Cross made a business decision not to renew our contract for 2024," Amerigroup told the Star Tribune. "Amerigroup continues to collaborate with Blue Cross to uphold our contract promise and remain focused on serving Minnesota's Medicaid enrollees through 2023."
BCBS Minnesota CEO Dana Erickson, BSN, told the Star Tribune the contract with Amerigroup was coming to an end, creating an opportunity to "reassess."
"We actually see it as a huge opportunity for us to re-think the model that we have," Ms. Erickson said.
Read more here.