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DHHS Sec. defends no-bid contract, says agency is stronger (video)

Dr. Aldona Wos defended her agency’s decision to award a $6.8 million, no-bid contract to a Washington, D.C. firm to help the state agency better organize its Medicaid finance office.

Wos credited the outside consultants at Alvarez and Marsal with helping improve the predictability of the Medicaid program, which has been plagued for years with cost overruns. This year, the agency projects it will return $63 million to the state’s general fund.

Still some members of the Joint Legislative Oversight Committee on Health and Human Services were unhappy with the decision to pay the out-of-state firm a rate that amounts to about $473 an hour.

“We had an emergency in the department. We didn’t have enough people, and the right people, and we couldn’t get it right with the information, and the data, and the numbers and the budget, and everything else you’re asking us. That was an emergency,” explained Sec. Wos.

Wos pledged the department would be even stronger when they tackle Medicaid reform next year.

As Sarah Ovaska reported earlier on the Pulse, DHHS is opposed to a Senate proposal that would remove Medicaid from Health and Human Services, making it a stand-alone agency.

The oversight committee will look for another progress report from DHHS leaders when it meets again October 14th.

To hear some of Sec. Wos’ remarks from Tuesday’s meeting, click below:

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