Second Group Sues State Over Health Care Contracts

ST. PAUL, Minn. (AP) - A second Minnesota health insurance group is suing the state after losing out on a bid for a contract to cover low-income residents.

South Country Health Alliance stands to lose contracts next year in 10 of the 11 counties where it currently provides coverage to residents on MinnesotaCare or Medical Assistance. Reports the group filed a lawsuit against the state earlier this week.

The organization of counties joins Minneapolis company UCare in lodging legal complaints to win back some of its business. UCare would lose roughly 370,000 customers if the state's bidding moves forward. South Country currently covers about 32,000 residents on public health programs.

The state says its bidding process will save about $450 million. A mediation hearing is scheduled for Sept. 16.