Louisiana Ends Medicaid Contract Under Federal Investigation

Louisiana Gov. Bobby Jindal’s office announced it would cancel a $185 million contract with CNSI, the prospective Maryland-based operator for Louisiana’s Medicaid claims, after a federal grand jury began investigations into the state’s awarding of the contract, according to a report by the Washington Post.

The state’s secretary for the Department of Health and Hospitals, Bruce Greenstein, formerly worked at CNSI from 2005 to 2006, but denied participating in the decision to award the contact.

CNSI submitted the lowest bid and won the 10-year contract in 2011, but critics have said the company underestimated the true cost of the contract in its bid.

Louisiana Ends Medicaid Contract Under Federal Investigation

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