Rivals protest offering opportunities for higher profits NC Medicaid Contact
North Carolina officials bypassed low bidders on a large Medicaid Services contract to a firm that cost $ 18 million - more than twice that competitors cheaper - and competitors question the decision.
The contract is concluded for the monitoring of mental health and substance abuse. The contractor shall ensure state and federal Medicaid dollars are spent on medically necessary services.
Medicaid, one of the fastest growing elements in the state budget is the state health insurance for the elderly and poor. He 150 percent in the last 10 years, will cost $ 2.4 billion in the current budget.
Magellan Health Services of Farmington, Conn., JSP and health care Silver Spring, Md., say the state, wrongly, with a three-year contract in Norfolk, Va.-based Value Options, offering $ 31, 3 million.
APS offers $ 13.4 million bid for $ 22.5 million Magellan, after the two companies’ March 18 joint letter of protest to state officials. You want to ask the state for a new stage of bidding.
“We were surprised by the price difference,” said Russell Petrella, a High Officer of Magellan. “We only say it must be a do-almost. Something does not simply believe it. ”
GSP clients who represent more than 25 percent of the nation’s Medicaid population. The protest letter said Magellan of the nation is the main provider Managed Behavioral Health.
Options value is responsible for about three years. Estimates of services by more than 1 million beneficiaries NC Medicaid.
The tender has not always been the lowest possible price, said Debbie Crane, a spokesman for the State Department of Health and Human Services. On the technology intensive work such as the Medicaid contract is the rate of money is not necessarily as important as technical know-how, “she said.
The status of implementation of the proposed Medicaid contract, so that the money represented 40 per cent of the current decision. Sixty percent of the weight has been awarded to technical points of view, as experience, Corporate Reputation and understanding of work to be done.
Crane recalled that the State has a chance on a technology not in the year 1999, if a company needs for its new centralized child Support System.
The system continued to anger the spirit of thousands of families whose child has been taken over by delaying payments. State officials have had to pay at least $ 5.6 million more for the system, as originally agreed, the documents published during the year 2000 has demonstrated.
The winning bidders in this Treaty, systems and methods Inc, was approximately $ 9 million cheaper than its competitors, Lockheed Martin IMS. Lockheed protested at the time, indicating that the company was victorious under-staffing and equipment.
SMI State officials and later, it had recognized the role underestimated.
“It is a mistake because the outside, that the state still offers down,” said Crane, “but the state wants, what really works.”
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