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Mar 2, 2012 8:40 AM by AP

State approves Medicaid claim firm

BATON ROUGE, La. (AP) - The Jindal administration has approved a $185 million multi-year contract with Maryland-based company called CNSI to take over Medicaid claims processing.

The Advocate reports the signing of the contract came eight months after the state Department of Health and Hospitals chose the firm and after CNSI overcame protests from unsuccessful bidders who claimed it had "low balled" costs.

Contract signing had been delayed pending its approval by the U.S. Centers for Medicare and Medicaid Services, which is providing most of the funding. CMS signed off on the pact earlier this month.

Under the contract, CNSI will handle claims and pay the invoices for health care provided under Medicaid, the government health insurance program for the poor. The program covers more than 1 million of the state's residents.

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