Gov. Peter Shumlin says the state of Vermont is going to save $10 million a year by switching the company that manages the health insurance plan for state employees.
The state says officials recently completed a competitive bidding process for health care administration, pharmacy, and dental benefits.
The new contract was awarded to Blue Cross Blue Shield of Vermont. Currently health benefits are managed by Cigna.
The State also selected its current providers, Express Scripts and Northeast Delta Dental, to contract for its drug benefit program and dental coverage.
The state insures more than 23,000 employees, retirees, and dependents.
The new plan will expand the ability of people in the program to improve their health through a new wellness program.
The new contract takes effect Jan. 1.