State employee health plan board denies appeal over wellness program contracts

The board overseeing the health plan for state employees voted Monday to deny an appeal filed by a wellness company that challenged a letter of intent to award contracts to a competitor.

In February, the Group Insurance Board signed off on starting negotiations with WebMD Health Services, based in Portland, Ore., to administer services related to well-being, mental health and chronic condition management for the Well Wisconsin Program.

Atlanta-based Sharecare, one of the finalists for the contracts, appealed the decision in March, per a memo from the Department of Employee Trust Funds.

In general, the company argued the evaluation process was unfair and contracts were awarded to a higher-cost vendor. An investigation by the department found the procurement process was appropriately followed and the board fulfilled its role, per the memo.

“Properly exercising your fiduciary duty includes engaging in a thoughtful process and weighing all relevant factors in deciding on the best wellness vendor for the Group Health Insurance Program,” Diana Felsmann, general counsel at the department’s Office of Legal Services, told board members Monday. “That’s what happened here.”

Tim Steiner, director of the department’s Bureau of Budget, Contract Administration and Procurement, told board members that both proposals by WebMD and Sharecare were “highly competitive.”

“However, the evaluation committee unanimously concluded that WebMD had a stronger proposal and would best meet the goals of the state’s benefit programs,” he said.

In a letter responding to the department’s memo, Zachary Bemis, an attorney for Sharecare, continued to express concerns about the board’s decision to award contracts to WebMD.

“Sharecare continues to believe that it offered an overall superior solution that would cost Wisconsin taxpayers and health plan participants far less money and provide a greater return on investment,” he wrote.

A Sharecare spokesperson said Tuesday they’re disappointed in the board’s decision, but appreciated members’ time and consideration. They declined further comment.

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