Missouri Quietly Scraps PPL Contract
The red flags keep on coming around the Wisconsin Department of Health Services' (DHS) decision to award a contract to New York-based Public Partnerships LLC (PPL) to serve as the sole fiscal agent for Wisconsin's IRIS Medicaid program.
IRIS is the state's long-term care program for older adults and those with disabilities. Enrollees direct their own care, and often hire loved ones using Medicaid funds to provide their care. About 30,000 individuals are enrolled in IRIS, which carries a $1.4 billion per year budget line item.
The MacIver Institute has learned that earlier this year the state of Missouri revoked a contract it had initially awarded to PPL due to concerns about the proposal that secured the contract. MacIver's Annette Olson broke the news of the Missouri contract this morning on the Vicki McKenna Show.
In a letter announcing the revocation of the contract, Stacia Dawson of the Missouri Department of Mental Health pointed to language in the PPL proposal claiming the company "had never experienced a delay in transitioning award programs." PPL has experienced well-publicized delays in serving programs in New York and Pennsylvania.
The DHS selection of PPL earlier this year has raised many questions. The MacIver Institute began reporting on this issue in January, highlighting PPL's ties to the powerful Service Employees International Union, PPL's problems running similar programs in other states, and allegations of bid rigging surrounding New York state's contract with PPL. Last week, the U.S. Department of Justice filed suit against PPL and senior members of New York Governor Kathy Hochul's administration alleging a "sham bid process." Similar to the Missouri case, the suit alleges that PPL submitted an "artificially attractive proposal" to secure the contract.
Patients and advocates have voiced concerns for months over the move to consolidate all payroll operations for IRIS under one company. These latest developments raise even more questions and should prompt calls to re-open the bidding process to ensure Wisconsin taxpayers and patients are well-served by the selection of such an important vendor.
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