State Auditor Jim Zeigler asks panel to delay $8M contract for Medicaid RCOs

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Alabama State Auditor Jim Zeigler is asking for yet another Medicaid contract delay.

On Tuesday, Zeigler asked the Alabama Legislature’s Contract Review Committee to delay a contract for $8 million in consulting services for implementation of the regional care organizations (RCOs) to deliver Medicaid healthcare. 

Zeigler said the contract needs to be scrapped, and has filed a written request for the maximum delay of 45 days to allow such action.

“This huge consulting cost needs substantial review by all in authority,” Zeigler explained of his request. “A contract of this size does not need to be approved and should be scrutinized and scrapped.” 

Medicaid is seeking to pay $8 million to the Chicago firm of Navigant Consulting for implementing the new system of private providers in each area of Alabama instead of the present statewide administration by the state Medicaid agency. 

Zeigler continued, “It appears that the plan for regional care organizations as now formatted will cost the state millions instead of saving the state millions. This plan needs to be halted now, before millions are spent in the implementation stage. Approval of this contract would be throwing good money in front of bad.”

Designed to be the state’s solution to the perennial problem of rising costs of Medicaid, RCOs have become a controversial topic in the Yellowhammer State this year.

Last month, Zeigler filed a separate request for another delay of a controversial $1.3 million contract. The Committee approved the request for delay.

The review panel will meet Thursday, Nov. 3 at 1 p.m. to review proposed contracts from state agencies, and will consider Zeigler’s request then.

Below is a copy of Zeigler’s Nov. 1 request to the Contract Review Committee:

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