Over the past fiscal year, the lack of an enacted budget has resulted in the State Employee Group Insurance Program (SEGIP) building up a large backlog of unpaid claims. With the passage of a state budget, money has been made available to pay bills in a timelier manner. However, there has not been sufficient funding provided to fully pay down the backlog of invoices accumulated over the course of the budget stalemate. Accordingly, the total of claims held by the State has risen from the last update provided by the Commission. As of the end of September, approximately $5 billion in SEGIP claims were being held by the state from various insurers, organizations, and companies. […]
Concurrently, the estimated time for claims to be held was 523-889 days for Managed Care/Medicare Advantage, 587-643 days for Open Access Plans, and 693-770 days for CIGNA.
According to COGFA, the state owes $600 million in interest on those unpaid bills.