Wrongful termination lawsuit over Medicaid contract settled
BATON ROUGE - A company whose $200 million Medicaid contract was canceled by former Gov. Bobby Jindal's administration has reached a settlement with Jindal's successor and ended its wrongful termination lawsuit against the state.
Maryland-based Client Network Services Inc., known as CNSI, announced the settlement Monday.
Under the terms outlined by CNSI, the state will change the description of the contract termination and allow CNSI to get additional reimbursement for work it performed.
Gov. John Bel Edwards' office says the state could owe up to $5 million.
CNSI was chosen for the 10-year Medicaid claims processing contract in 2011.
The Jindal administration voided the deal in 2013 and accused former health secretary Bruce Greenstein of inappropriate contact with the company throughout the bid process.
CNSI sued, saying it did nothing inappropriate.