State AG Investigating Cancelled Medicaid Contract; Jindal Stands By Greenstein

The State Attorney General’s office confirmed that it is also investigating the Louisiana’s now-cancelled contract with CNSI to process Medicaid claims. A Baton Rouge Grand Jury is also looking into the contract.

It was disclosed Friday that the Grand Jury had subpoenaed the state seeking documents related to the bid process where CNSI, DHH Secretary Bruce Greenstein, won the $185 Million, 10-year contract.

Greenstein publicly claimed to stay out of the bid process but documents revealed that he made changes to the RFP which allowed CNSI to gain the contract.

CNSI was the low bidder however they have been accused of “low-balling” their bid to gain the contract and they have sought multiple increases to the contract amount. The total amount of the increases would put CNSI’s bid above the 2^nd lowest bidder.

Assistant Attorney General David Caldwell believes that the contract should never have been given to CNSI.

"We conveyed to them (the state) the original bid submitted by CNSI was non-responsive and should never have been let in the first place," Caldwell said.

While the Grand Jury subpoenaed the information in January, the Jindal Administration just took steps this past Thursday to cancel the contract.

Despite the Grand Jury and AG investigations, Governor Jindal has not taken any action regarding Greenstein.

In a written statement, Jindal’s Chief of Staff Paul Rainwater said, “We have confidence in Bruce.”