UnitedHealthcare Loses Appeal On HMO Contracts

TALLAHASSEE (CBS4)- A Tallahassee appeals court this week rejected an appeal by UnitedHealthcare of Florida in a dispute about major changes in HMO coverage for state employees.

The Department of Management Services earlier this year awarded new HMO contracts, largely choosing one health plan to provide coverage in each county. United, which in the past has covered government workers statewide, will be limited to 18 counties under the new system.

The company challenged the contracting process, but DMS said United had not properly filed a bond that is required in such protests. United asked the 1st District Court of Appeal to overturn DMS’ position, which could have reopened the fight about the contracting process.

But a three-judge panel Wednesday sided with DMS. The opinion did not give reasons.

(©2011 CBS Local Media, a division of CBS Radio Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. The News Service of Florida contributed material for this report)

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