Lawmakers who are seeking more information about the recent cancellation of a nearly $200 million Medicaid contract aren’t getting any details for now. The now-scrapped contract for Medicaid claims processing had been awarded to CNSI, a Maryland-based company with ties to Gov. Bobby Jindal’s health secretary, Bruce Greenstein. The contract award is under investigation by a federal grand jury and the state attorney general’s office. State Inspector General Stephen Street told the House Appropriations Committee today that he has asked that the Jindal administration not comment on specifics of the investigation. Greenstein didn’t show up for the discussion of his budget, instead leaving it to his chief deputy. Appropriations Chairman Jim Fannin, D-Jonesboro, says it was irresponsible for Greenstein to miss the hearing. A department spokesperson, however, says Greenstein missed the meeting due to a “prior family engagement,” and had informed Fannin that he would be absent prior to the today’s meeting. CNSI, which was supposed to take over the Medicaid work next year, is challenging the termination of its contract by the state. Greenstein worked for CNSI from 2005 to 2006. CNSI won the 10-year contract in 2011, beating three other companies for the work, but critics said the company underestimated the true cost of the job and made incorrect assumptions to win the bid.
Editor’s note: This story has been changed since its original publication to include a comment from a DHH spokesperson regarding Greenstein’s absence from today’s meeting.
