PROVIDENCE, R.I. (WPRI) — The state of Rhode Island will be allowed to keep $30 million of the $50 million penalty being paid by Deloitte, the company that built the infamous Unified Health Infrastructure Project, the state announced Tuesday.
Gov. Gina Raimondo’s administration said it has reached a deal with federal regulators — who are covering the bulk of the project’s roughly $649 million multiyear cost — under which $30 million will stay with the state, with the other $20 million split between the U.S. Centers for Medicare and Medicaid Services and the U.S. Food and Nutrition Service.
The announcement comes nearly a year after Raimondo announced she had agreed to extend Deloitte’s contract running UHIP, a complex new system for public benefits like Medicaid and food stamps that all but collapsed when it first launched in September 2016. The administration now calls the system “RI Bridges.”
Under the terms of the extension, Deloitte will continue running UHIP through at least June 2021. The administration says it values the various concessions by Deloitte — which include credits and discounts in addition to the $50 million cash payment — at $141.5 million.
“The state is grateful to our partners at the federal government for their handling of this unprecedented contract and settlement negotiation,” R.I. Department of Human Services Director Courtney Hawkins said in a statement. “Ensuring continuity of service and system stability for the next 16 months is a key priority for DHS and this contract amendment supports this goal.”
Ted Nesi (email@example.com) is WPRI 12’s politics and business editor and a Target 12 investigative reporter. He is a weekly panelist on Newsmakers and hosts Executive Suite. Follow him on Twitter and Facebook