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California's no-bid health contracts amounted to $184 million
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Oct 13, 2014
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California's no-bid health contracts amounted to $184 million
Several of the contracts went to a consulting group whose founder had ties to the health agency's executive director.
Covered California Executive Director Peter Lee speaks during a press conference regarding the number of new healthcare enrollees through CoveredCA.com, the health insurance exchange for the state of California, on November 13, 2013 in Sacramento, California. A total of 30,830 Californians enrolled through the exchange in the month of October, with a total of 59,830 people enrolled through November 12.
Covered California Executive Director Peter Lee speaks during a press conference regarding the number of new healthcare enrollees through CoveredCA.com, the health insurance exchange for the state of California, on November 13, 2013 in Sacramento, California.
(
Max Whittaker/Getty Images
)

Several of the contracts went to a consulting group whose founder had ties to the health agency's executive director.

A new investigation from the Associated Press reveals a behind-the-scenes look at California's health insurance exchange, seen as one of the most successful in the nation.

Reporter Michael Blood discovered that Covered California awarded $184 million in contracts without the use of competitive bidding.

Several of those contracts went to a consulting group whose founder had ties to the health agency's executive director.

Covered California is allowed to secure no-bid contracts in order to meet tight federal deadlines on healthcare, according to the AP report. So far, the exchange has charted success by signing up some 3.4 million state residents. It begins the second enrollment period next month.

But Covered California officials say the contracts have been used to complete critical tasks at the program. The process took place "completely with transparency and within the law," said Dana Howard, deputy director of communications for the agency. Howard said there was nothing "improper, illegal or inappropriate" about the contracts.

Covered California's Executive Director told the AP in a statement that the fledgling exchange "needed experienced individuals who could go toe-to-toe with health plans and bring to our consumers the best possible insurance value. Contractors like The Tori Group possess unique and deep health care experience to help make that happen and get the job done on a tight deadline."

For more on this, AP reporter Michael Blood joins Take Two.