(The Center Square) – North Carolina Treasurer Dale Folwell wants insurance company BlueCross BlueShield of North Carolina to reimburse the state for $2 million in legal fees spent defending a lawsuit filed by the company.
BlueCross sued the state after the board of the North Carolina State Health Plan in December 2022 chose another company, Aetna, to administer the state employee health plan, Folwell said.
“From the beginning, it was clear that the plan and its board performed a well-reasoned, high integrity and correct procurement process,” Folwell wrote in a letter to BlueCross.
A court ruled in favor of the state’s decision, but North Carolina had to spend more than $2 million in legal fees to outside counsel, Folwell said.
“Therefore, I demand that you finally take responsibility and repay the people of North Carolina for the cost of your failed attempt to overturn our lawful procurement process,” Folwell wrote.
In a news conference Tuesday, Folwell said he has “no idea how BlueCross is going to respond to this,” because the company has been “unpredictable” since losing the contract.
The Center Square was unsuccessful getting comment from BlueCross BlueShield on Folwell’s request prior to publication.
The lawsuit had the potential for creating uncertainty among state employees over their health-care coverage, Folwell added.
“Once the judge’s ruling came down, they chose not to appeal,” the treasurer said of Blue Cross.
In his letter, Folwell demands payment within 30 days.
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He said he will consult state lawyers about the next steps to take if BlueCross does not respond to demand.
Folwell is leaving office in January after two four-year terms in the position and will be replaced by fellow Republican Brad Briner. Folwell ran for governor earlier this year but lost in the primary to Lt. Gov. Mark Robinson, who lost to Democratic Attorney General Josh Stein.