One company submits proposal for Medicaid contract

Published 7:50 am Wednesday, September 25, 2013

BATON ROUGE (AP) — The Jindal administration says one company submitted a proposal to help the state decide what kind of system it needs for Medicaid claims processing and eligibility determination for the more than $7 billion government health insurance program for the poor.

The Advocate reports (http://bit.ly/1fC2Inb) First Data is in negotiations with state health agency officials for what is described as “staff augmentation.” A decision on the contract award is expected to be reached by Oct. 17. No price has been determined.

Ruth Johnson, a special adviser for the State Division of Administration, said she was “shocked to hear” that only one firm sought the work. But, she added, “Right now across the country … everybody’s got a project of some type going on.” Johnson said a lot of work is associated with preparations for implementation of the federal Affordable Care Act.

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First Data is described as a global claims processing company.

The outside professional help is being sought as the Jindal administration prepares to seek a replacement for its fired Medicaid claims processor Client Network Services Inc. CNSI lost a nearly $200 million contract earlier this year because of alleged improprieties. The company is suing the state for wrongful contract termination.

Health Secretary Bruce Greenstein, a former CNSI executive, resigned as news broke of a federal investigation into the contract award.

A state grand jury probe also is underway.

If First Data gets the “staff augmentation” contract, the firm will also provide input on another system that verifies a person’s eligibility when they seek Medicaid coverage.

The hope is the two systems can be integrated to achieve savings, Johnson said.