BATON ROUGE, La. (AP) — Gov. Bobby Jindal's administration announced Thursday it is scrapping a lucrative state Medicaid contract that is the subject of a federal grand jury investigation.
Commissioner of Administration Kristy Nichols issued a statement announcing the cancellation of the more than $185 million contract with Maryland-based CNSI, which was supposed to take over Medicaid claims processing next year.
"Based on consultation with the Attorney General's office, today I am terminating the state's contract with CNSI, effective immediately," Nichols said.
A Baton Rouge-based federal grand jury is investigating the Jindal administration's award of the contract, which went to a company where the governor's health secretary, Bruce Greenstein, once worked.
The investigation was first reported by The Advocate. Within hours of the story, Nichols announced the contract's cancellation.
The grand jury's subpoena issued to the governor's Division of Administration requested all documents submitted by companies that bid for the work and documents that show the date and time each response was received by the state.
Though Nichols didn't cite the grand jury review, she said in her statement, "We have zero tolerance for wrongdoing, and we will continue to cooperate fully with any investigation."