Rhode Island Governor drops Medicaid consultant plans

Mar 4 2009

Rhode Island Gov. Don Carcieri (R) has canceled plans to hire a private consulting firm to lead the state's massive Medicaid overhaul under the so-called "global Medicaid waiver," and instead will use a team of state employees to provide oversight, the Providence Journal reports (Peoples, Providence Journal, 3/3).

Under the agreement that Carcieri negotiated with CMS last year, the state will limit Medicaid spending to $12.4 billion through 2013. In exchange for capping spending, the state will receive broad authority to change services, such as nursing home care; subsidized transportation for the elderly and beneficiaries with disabilities; health insurance for low-income children and parents; and prescription drug coverage for seniors. State Department of Human Services Associate Director Murray Blitzer said that if the state runs out of its allotted funds before the five-year mark, it will lose matching federal funds, which would force the state to pay the program's full cost or cut services (Kaiser Daily Health Policy Report, 2/5). According to a timeline released on Monday by Carcieri's office, Rhode Island Medicaid beneficiaries could begin noticing changes by June 1.

Amy Kempe, a spokesperson for Carcieri, on Monday said, "The [state] Department of Human Services is moving ahead with a very aggressive plan to get the right people in place to implement the waiver," noting that 49 job openings will be advertised between March 4 and April 1.

Eleven companies responded to the governor's request for bids to "assist in coordinating the development and implementation of (these) Medicaid reforms." Kempe said the decision not to use private contractors was made by DHS Director Gary Alexander. According to Kempe, "Since the time the [request for proposals] process was started and the waiver has been approved, the director has had the time to assess staffing needs across all ... departments and, at this time, does not need such a broad scope of services." She said the administration could reconsider the need for consultants, adding, "There may be a need for a more focused scope of services in the future, but that will be assessed as the waiver is implemented" (Providence Journal, 3/3).