Covering Louisiana

Apr 26, 2013 7:31 PM by AP

Jindal administration outlines Medicaid contract problems

BATON ROUGE, La. (AP) - Gov. Bobby Jindal's administration says its former health secretary, Bruce Greenstein, improperly exchanged repeated phone calls and text messages with a company bidding for a lucrative Medicaid contract.

The administration released a letter Friday, outlining its reasons for canceling the state's nearly $200 million contract with Maryland-based CNSI.

Sandra Gillen, the director of state purchasing, writes that Greenstein and CNSI officials had "hundreds of telephone calls and thousands of text messages" throughout the bid and contract award process - including on the day DHH made a change that allowed CNSI to be eligible for the contract.

The contract award is the subject of federal and state investigations.

CNSI officials had pressed for more information about why the 10-year contract for Medicaid claims processing and bill payment was terminated.

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