R.I. administration to pay $370,000 for 'voluntary' work
5:39 PM Fri, Jun 12, 2009 | Permalink
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By Katherine Gregg PROVIDENCE, R.I. -- Three days after the Senate confirmation of a new state chief of health and human services amid unanswered questions about the role played by a no-bid, no-contract consultant on Rhode Island's Medicaid overhaul, the Carcieri administration has announced a $370,000 settlement with the Boston-based Lucas Group. The partners in the company include former New Hampshire health and human services commissioner and unsuccessful 2008 New Hampshire GOP congressional candidate John Stephen. On its Web page, the Lucas Group took credit for having "originated" and "constructed" and then "led" the negotiations with federal officials that resulted in Rhode Island's winning a far-reaching Medicaid waiver credited with saving the state $7 million this year and millions more later by steering the elderly away from nursing homes, redefining who is sick enough to be eligible for certain services and creating "selected" treatment networks for the people enrolled in this state- and federal-financed medical coverage program for the elderly and poor. On Friday the Carcieri administration acknowledged the company's role, having previously described it as "voluntary'' with no promises or expectations of renumeration. According to a statement by the governor's legal office: "The Lucas Group requested payments totaling $468,127 for services the company performed in assisting the State on the Global Medicaid Waiver and identifying significant savings initiatives and reforms, a dispute arose. "After several months of disagreement, a settlement was reached after intensive mediation facilitated by retired Associate Justice, Richard Israel. The Office of the Governor agreed that even though no formal contract had been signed by the time the Waiver was completed, the State did benefit, and payment to the Lucas Group is appropriate under the circumstances.'' Under the terms of the settlement, the Lucas Group will be paid $370,000 by the Department of Human Services, in two payments: $150,000 to be paid on June 12, 2009 and $220,000 to be paid on or before July 3, 2009. Extra: 
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You wonder why we do not trust this administration!
Lies & slick language....Gary Alexander didn't think these people were ever paid..... so smooth. Who helped Mr. Alexander come up with this slick language? I am sure this person is on the payroll!
Carcieri's administration gets what they want (Alexander's confirmation) -and- then they come clean and pay the company and oh my, this information comes out late on a Friday afternoon.
Our country, our state cheat the hard working tax payer and are challenged to provide for the needy. I love our country, our freedom and I love so many wonderful people here, but there is so much self serving greed, it makes me sick.
This administration complains about special interest groups. This administration acts like it takes the moral high ground. The General Assembly stole so much money from hard working RI's in the past and RI has no money! Wall Street greed caused the US economy to crash.
We send people to prison for stealing a small amount of money, while the white collar greedy get sentenced to a great pension! Many hard working RIers have their $25,000. pensions on the line at a time when all RIer's investments and home values have crashed.
Where is the justice?
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How can he pay $370K without a bid when the rest of state government cannot buy pencils without three quotes and months of delay?
The Don sure has his own set of rules
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I heard that we cant buy pencils, but we ran out of paper and ink to print that memo...Thanks for nothing governor.
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This stinks to high heaven. It was planned from the start. Lets see some phone records subpoenaed get some wire taps and go hunting.
Hopefully Projo will investigate this further and maybe our do nothing AG's office will try and score some election points by getting into this also.
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