State and federal probes underway into awarding of Medicaid contract to company where Bruce Greenstein once worked
Gov. Bobby Jindal's health secretary, Bruce Greenstein, has resigned amid ongoing state and federal probes into the awarding of a Medicaid contract to a company where Greenstein once worked.
The Jindal administration canceled the nearly $200 million contract with Maryland-based CNSI last week after details leaked of a federal grand jury subpoena involving the contract award.
Jindal spokesman Kyle Plotkin said Friday that Greenstein was resigning. He says the governor didn't ask Greenstein to step down.
The 10-year contract was for Medicaid claims processing and bill payment. The state attorney general's office has said the contract was improperly handled.
When the Medicaid contract was awarded two years ago, Greenstein denied any involvement in the selection. But he acknowledged that a change he pushed in the bid solicitation made CNSI eligible.
Jindal appointed current Deputy Secretary of the Louisiana Department of Health and Hospitals, Kathy Kliebert, to serve as Interim Secretary of the agency.
The Governor says Kliebert is a "longtime public servant" whom he says "will serve the people of Louisiana well."
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