Jindal Drops Hot Potato Medicaid Contract


COOL-BEAN-AND-A-HOT-POTATOJust when they thought they thought they were real cool Beans, the Jindal administration was handling a very HOT POTATO. Witinin a matter of hours after news broke that a federal grand jury was investigating the administration’s award of the contract, the Hot Potato was dropped!

Commissioner of Administration Kristy Nichols read from a prepared text: “Based on consultation with the Attorney General’s office, today I am terminating the state’s contract with CNSI, effective immediately. The state will work with the current contractor, Molina Medicaid Solutions, to provide services during this transition and until a new RFP (request for proposal), overseen by the Division of Administration, is completed.”Exploding Potato

The Baton Rouge-based federal grand jury subpoenaed documents related to the state’s awarding of the contract for Medicaid claims processing to Gaithersburg, Md. based Client Network Services Inc. The tie is that Greenstein was an executive with CNSI from 1995 to 1996.

The company got the contract in 2011 amid some complaints that the company “low balled” the price and made erroneous assumptions in its proposal.

The contract was awarded by the state Department of Health and Hospitals and signed off on by the Jindal administration amid complaints from other vendors.

At the time, state health secretary Bruce Greenstein, a one-time CNSI executive, said he took himself out of the contract dealings. Documents revealed Greenstein influenced a document change that allowed CNSI to compete.


Chaos in the office...
Chaos in the office…

Commissioner of Administration Kristy Nichols said the state Division of Administration complied with the federal subpoena and delivered the documents requested. She said the subpoena was handled by the division’s general counsel and she only recently became aware of its existence.