CNSI: State losing millions by canceling contract

(Source: MGN Online)
(Source: MGN Online)

Associated Press

BATON ROUGE, La. (AP) - A Medicaid contractor whose work was canceled by Gov. Bobby Jindal's administration amid ongoing criminal investigations says the state is losing millions by scrapping the contract.

The claims from Client Network Services Inc., or CNSI, are the latest salvo in ongoing legal disputes between the company and the state.

CNSI says the state will pay $75 million more over three years with another contractor for Medicaid claims processing and spend up to $5 million for rebidding the contract.

Jindal administration lawyer Liz Murrill says the state is evaluating the cancellation costs - along with legal options for recovering the money.

State and federal investigators are reviewing the award of the $200 million contract to CNSI. Health secretary Bruce Greenstein, a former CNSI vice president, resigned after the contract was terminated.

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