The state of Nebraska is being sued by Blue Cross Blue Shield for a planned switch to a new health insurance company.
The lawsuit has been filed to block the move because the state allegedly lobbied 'improperly' for the insurer United Healthcare.
The Lincoln Journal Star reported Blue Cross saying recently that the chairman of the Nebraska Republican Party violated state rules by lobbying on behalf of United Healthcare.
Nebraska officials contend that changing the health insurer will save taxpayers and state employees a combined $8 million annually. This is why the state planned to change to United Healthcare on July 1.
Blue Cross officials say that the change will actually increase costs by an additional $10 million per year because of limits in the United Healthcare network.
Blue Cross Blue Shield has administered Nebraska's health insurance plan for nearly 30 years.