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Boston company takes credit for R.I. Medicaid waiver

3:00 PM Mon, Jun 08, 2009 |
Katherine Gregg    Email


PROVIDENCE, R.I. -- With the full state Senate poised to vote Tuesday on the confirmation of Gary Alexander as the chief of the state's health and human services office, a Bay State company, whose principals include a failed Republican Congressional candidate in New Hampshire, is taking credit for helping the Carcieri administration win unprecedented freedom in Medicaid spending.

On its Web page, the Lucas Group says it not only "worked with governor's Office and [Department of Human Services] to transform Rhode Island Medicaid with the first ever Global Compact Waiver,'' it did the lion's share of the work.

The company, whose partners include former New Hampshire health and human services commissioner and candidate John Stephen claims to have: "Constructed...the concepts developed for the Global Waiver included the rebalancing of the long term care system ...Led efforts to identify all programs in the state budget that were funded by the state without any federal participation...Led negotiations with federal Medicaid officials to achieve successful outcomes.''

With respect to "low income populations that were at-risk for institutional care,'' the company said: "Lucas Group then successfully negotiated inclusion of these populations in the Wavier, resulting in over $100 million in additional federal funds over the 5 year period.''

The company's claims appear to conflict with Alexander's own statements that he was the driving force and the chief negotiator who convinced federal officials to grant Rhode Island first-in-the nation freedom to redesign its health insurance for the low-income poor and elderly, in exchange for agreeing to live within a spending cap.

Alexander did not respond to a request for comment.

Nor has he answered this question from The Journal in recent weeks: has the Lucas Group or John Stephen requested payment for its role in helping Rhode Island win the Medicaid waiver?

The controller's office has said no payment has been made, but Alexander has been unwilling to say if payment has been requested.

He referred the question to the governor's press secretary Amy Kempe, who has also left the question unanswered. A lawyer for the governor, Daniel Majcher, said last week that the administration has up to 30 business days under the state's open-records law to reply.

Attempts to reach John Stephen were also unsuccessful. A woman who answered the Lucas group telephone identified him as a partner in the company, but said: "I don't believe he is in the office right now.''

As reports surfaced about the company's behind the scenes role, Kempe acknowledged its participation but said repeatedly that it had "volunteered'' its time, without any expectation of payment, though it was free to bid on any contracts that might be offered in the future.

But the company said the waiver Rhode Island won, with its help, during the closing days of the Bush administration "will, among other things, establish a new expedited 45 day approval process for any changes to benefits or program during the 5 year demonstration period; establish new levels of care for the determination of nursing home eligibility that will serve to place priority on high quality and less expensive community based placements over costly nursing home care...allow for benefits in any optional and mandatory program to be "customized" to fit the needs of the person; allow for priority to be placed on preventative services; establish a healthy choice account that will reward healthy behaviors with appropriate incentives; and allow new purchasing strategies that focus on quality and competition.''

Each of these are concepts for which the Carcieri administration has taken credit.

On its Web page, the company, which bid for a administration contract - later canceled - for the Medicaid waiver, the company said: "Governor's Office and DHS brought in The Lucas Group to improve operations and meet budgeted savings goals targeted by the Legislature.''

It further said the company identified a potential $388 million in savings for DHS;
"assessed the status of FY 09 Medicaid initiatives and quickly determined that, of the $109 million in budgeted Medicaid savings initiatives, only $47 million was on target to be achieved...Identified an additional $60 million in new Medicaid savings initiatives that were inserted into a supplemental budget to ensure that the budgeted savings were on track.

The company Web page says it also "helped DHS refine existing savings initiatives, identified new initiatives that focused on areas, such as, nursing home diversion and transition, shared and independent living arrangements for persons with disabilities, emergency room diversion, competitive purchasing strategies and more cost-effective pharmacy benefit management.''

Alexander's May 20 Senate confirmation vote was postponed after The Journal brought to light a previously undisclosed contract with the Lucas Group.

The Senate is scheduled to vote on his nomination Tuesday.

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Comments

mer said:

So of course we're supposed to believe LUCAS did the lions share of the work for FREE?!?!?!?!?

And of course Alexander refuses to answer questions AS USUAL...

And OF COURSE he will be confirmed ANYWAY...



gda said:

that's right 'mer'

that's exactly how it's going to happen




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