Posted 10/15/2012 12:00 am
Updated 2 years ago
You might have seen the news report that says the University of Arkansas System has canceled the contract under which QualChoice of Little Rock handles the third-party administrator duties for the UA’s employee health plan.
Since the UA System took bids on the contract, it was safe to assume that some savings was expected by switching to the new administrator, UnitedHealthcare of Hartford, Conn., on Jan. 1.
Now we know that the savings will be significant — about 15 percent.
The UA expects to pay about $5.7 million to United. It paid $6.75 million to QualChoice for the fiscal year that ended June 30.
The UA also said it didn’t have to pay QualChoice for termination of the contract. The contract officially ended on June 30. All the UA had to do was give a 90-day notice of cancellation, which it did.