Jindal Administration Cancels Contract After Investigation, Contractor Challenges

A Maryland company whose Medicaid contract with the State of Louisiana has become the subject of a federal grand jury investigation is telling the state government that they can't do that.

Maryland-based CNSI was supposed to take over Medicaid claims processing next year, but after word got out about a federal investigation, Governor Bobby Jindal's administration pulled the plug on the deal.

CNSI says the state can't just cancel the agreement without prior notice.

The federal government is investigating how the Jindal administration awarded the contract.  The governor's health secretary, Bruce Greenstein, was formerly employed by CNSI.