Billionaire Swindlers Line Up for ObamaCare Cash

health-care-costs-moneyAn information technology (IT) company in line to bid on billions in new contracts as a result of ObamaCare is the subject of a growing list of scandals and investigations in which its alleged that, among a number of abuses, the company has produced low ball bids in order to win Medicaid related contracts, only to create overages that balloon the expense of the project as it is implemented.

The name of the company is Client Network Services, Inc (CNSI) and it’s headquartered in Maryland. The company will be able to bid on billions in new ObamaCare-related IT contracts because, in order for states to receive new grants for expanded Medicaid rolls, ObamaCare requires states to have IT systems that are able to share data at so-called finger-tip access. Because most states have antiquated systems, such overhauls will often require the assistance of companies like CNSI.

In March, Louisiana Governor Bobby Jindal canceled one such contract between CNSI and his state after it came to light that a federal grand jury was investigating the relationship between one of his top aides and CNSI.

Front Page Magazine interviewed Tom Aswell, a blogger and author from Louisiana with more than three decades of news experience. Aswell has been writing about the case from the beginning.

Aswell said he first became aware something was amiss in June 2011, when Bruce Greenstein went before the Louisiana Senate Governmental Affairs Committee to be confirmed as the secretary of Louisiana’s Department of Health and Hospitals (DHH), the equivalent of the US Health and Human Services (HHS) secretary.

During the proceedings, things became contentious and confusing when Greenstein refused to divulge the recipient of a contract to upgrade the State of Louisiana’s antiquated computer system, which electronically processed Medicaid health care claims.

Greenstein went back and forth with lawmakers for quite a while before he finally admitted it was CNSI, his own former employer. He assured the state legislators at that hearing that he created a firewall between himself and his former employer during the contractual process.

That turned out not to be true, and, instead, in March 2013, news was leaked that a federal grand jury was investigating the potentially illegal relationship between Greenstein and CNSI during the process in which this contract was awarded.

Once that came to light, not only did Jindal cancel the contract, but Greenstein resigned shortly after. Aswell said that all sorts of issues were raised with CNSI’s bid ($194 million), and a number of people in the media raised concerns that CNSI would not be able to achieve the contract for the pre-arranged price.

In 2012, Southeast Michigan Healthcare Information Exchange (SEMHIE), a multi-stakeholder initiative trying to integrate a health information exchange throughout southeast Michigan, sued CNSI for breach of contract after CNSI allegedly failed to provide SEMHIE with prior agreed upon software. An email was left unreturned by SEMHIE for this story. Jennifer Bahrami, press secretary for CNSI, also didn’t respond to an email for comment for this story.

In 2011, CNSI was accused of lowballing a contract in South Dakota, only to have expenses increase exponentially as the project wore on. A local story on the affair explained:

The South Dakota Department of Social Services has paid $49.7 million so far for a new Medicaid processing system that at this point remains inoperable.

The original contract was for $62.7 million, but the new system is now expected to cost far in excess of $80 million to complete and will take two to three more years to get running, according to court documents filed as part of a lawsuit between the contractor and the department.

The most in-depth investigation of CNSI occurred in Maine in 2006, and it was conducted by the magazine CIO, a journal for IT professionals. In that piece, CIO concluded that not only did CNSI’s system end up costing 20% more than the company’s originally bid, but its implementation was a logistical nightmare.

The department’s Bureau of Medical Services, which runs the Medicaid program, was being deluged with hundreds of calls from doctors, dentists, hospitals, health clinics and nursing homes, angry because their claims were not being paid. The new system had placed most of the rejected claims in a ‘suspended’ file for forms that contained errors.

Tens of thousands of claims representing millions of dollars were being left in limbo.

About 15 IT staffers and about 4 dozen employees from CNSI, the contractor hired to develop the system—were working 12-hour days, writing software fixes and performing adjustments so fast that Hitchings knew that key project management guidelines were beginning to fall by the wayside. And nothing seemed to help.

Because CNSI is a private company, their financials aren’t published, and thus, the exact amount of business it does with our government isn’t known. Furthermore, because most IT-related Medicaid contracts are done on the state level, tracking the amount of IT business that ObamaCare will create is also very difficult to do. It is clear that one company that should be happy with the implementation of ObamaCare is CNSI because it is without a doubt a boon to a company like it. The company’s behavior before and during the implementation of ObamaCare should therefore be watched very carefully and Front Page Magazine intends to do so.

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  • us0r

    No mention of the jobs being created offshore with American tax payer dollars?

    You need to do some more digging.

  • okokok

    sorry wingnuts! lol

    ‘Obamacare’ to slash individual New Yorkers’ health insurance rates by 50 percent

    • Jsjk

      Wow. You’re really gullible, aren’t you. New York currently has one of the highest rates for medical insurance in the country. It’s astronomical to begin with. But the much touted *future*, predicted decline (that’s called “happy talk”) is contingent on the exchanges. If the exchanges flop, then there goes your premium reductions. Many analysts say that there simply will not be a sufficient number of healthy adults willing to fork over exorbitant amounts of money, especially when they’re not sick — they’ll opt out and just pay the penalty (it’s cheaper). And there goes your predicted “savings”. Remember Obama is a serial, pathological liar. His claim that Obamacare will be “affordable” for ordinary Americans is bogus, a hoax, a cruel joke. Who *will* grow enormously wealthy under Obamacare will be the IT scammers — billions of taxpayer’s monies will be spent on fraudulent schemes to get States up-to-date electronic medical files (as the above article details).

      • okokok

        ok, let’s try again! lol lol..this time try to read for comprehension!
        New York Gov. Andrew Cuomo (D) announced Wednesday that prices for individual health insurance policies are on the brink of plunging 50 percent or more thanks to provisions in the Affordable Care Act.

        A spokesperson for the governor’s office told *The New York Times* that
        the new rates mean that individuals with health policies currently running over $1,000 a month will soon be facing bills up to just $308, and even less after a subsidy from what critics have dubbed “Obamacare.”

        The change comes thanks to New York’s online insurance exchange, a key provision of the Affordable Care Act that forces insurers to compete with one another. The 2014 rates were approved for the marketplace by New York’s insurance regulator on Wednesday, and should be in effect by October. The news can only sound like relief to the 18 percent of New Yorkers who are either uninsured or pay for an individual policy — a pool of just over 2.6 million people, the *Times* estimated.

        The state shelled out more for health care per capita than almost any other state in the nation in 2009, according to the Kaiser Family Foundation. New York’s per capita health spending was only topped in 2009 by Delaware, Maine, Connecticut, Alaska, Massachusetts and Washington, D.C., Kaiser noted. The nation’s third most populous state also found itself in second place that same year for overall health care spending, Kaiser pointed out. In that category, New York ended up just behind California in 2009, despite having nearly 20 million fewer people to care for.

        Of course, if you’re living in a state with a Republican governor like Texas Gov. Rick Perry (R), who is refusing to implement key provisions of the Affordable Care Act, don’t just up and move quite yet. A study published earlier this month by the Economic Policy Institute found
        that New York City has one of the highest costs-of-living of any city in the nation, particularly for working families with children. EPI added that the biggest expenses for New York families are most often child care, housing and health insurance.

        For people living in 24 states like Texas, Oklahoma, Florida or Wisconsin, where Republican governors are refusing to set up the federally-mandated health insurance exchanges, hold on tight: the Obama administration is setting up exchanges that supersede the states, and Americans should be able to buy discounted health insurance by this time next year.

        • Jsjk

          One more time — you are counting your chickens before the eggs have hatched. There is NO guarantee that enough people will sign onto the exchanges. So, what you have is more “happy talk” about how wonderful, how delightful the future exchanges will be — which, knowing Obama, is just another one of his propaganda promises, bound for failure (as reality hits).

    • skbn113

      Yeah OKOKOK, and we have “Good jobs. Lots of jobs. High-paying jobs, too”….I’d like to sell you Manhattan, sir !

      • okokok

        Well ask ur bagger friends to stop blocking Obama job creation bills, moron

  • Avery111
  • skbn113

    It’s not bad enough that we have Medicare swindles up the yingyang, now we will have massive frauds with Obamacare, too?
    Why don’t we just kill ourselves?