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Thu January 10, 2013
State's Medicaid Contract Gains in Value
A $185 million multiyear contract with a company to take over the state's Medicaid claims processing is getting more lucrative.
State Department of Health and Hospitals Undersecretary Jerry Phillips tells The Advocate Tuesday that an amendment will add about $8 million to the money CNSI will receive under its contract.
CNSI won the state contract, overcoming protests from unsuccessful bidders who claimed the business information processing firm had "low balled" costs.
DHH Secretary Bruce Greenstein had once worked for CNSI. He repeatedly has denied having anything to do with CNSI's selection by DHH.
The change increasing the contract by $8 million is pending approval by the governor's Office of State Purchasing.
CNSI will take over processing the Louisiana Medicaid claims at the end of 2014.