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State Terminates Contract with Medicaid Consultant

| June 13, 2014


AUGUSTA, Maine (AP) – The Maine Department of Health and Human Services is ending its contract with a consultant who missed deadlines and faced plagiarism accusations for a report about how to overhaul the state’s Medicaid program.

Officials said Friday that early termination will mean a loss of $450,400 to the Alexander Group. The total already paid to the consultant was $474,760, about half of which came from state dollars.

DHHS came about those figures by imposing a 40 percent penalty that’s being withheld for part of the report and a 25 percent penalty that will be reimbursed for another part.

The Alexander Group was accused of copying or improperly citing several other organizations’ work. House Speaker Mark Eves and Democratic Senate President Justin Alfond previously demanded that the LePage administration suspend payments.

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