- Associated Press - Thursday, December 7, 2017

SPRINGFIELD, Ill. (AP) - The Latest on a scrutinized Medicaid overhaul contract (all times local):

1:30 p.m.

A Republican lawmaker is challenging Gov. Bruce Rauner over a claim that the Democratic House speaker influenced the cancellation of a $12.5 million no-bid contract the administration signed.

Barrington Hills GOP Rep. David McSweeney says Republican Rauner must provide proof or apologize.

Independent chief procurement officer Ellen Daley nullified the Medicaid-related consulting contract with McKinsey & Co. Tuesday. She says it should have been let for bid.

The Chicago Tribune reported Thursday that Rauner blamed his nemesis. He said Chicago Speaker Michael Madigan has “heavy influence” over Daley. Rauner’s office did not immediately respond with elaboration.

Madigan spokesman Steven Brown called it “empty talk.” Daley did not immediately respond.

McSweeney placed his order during a House Appropriations Committee hearing in Chicago to review the Rauner administration’s $63 billion, four-year contract to expand managed care to Medicaid clients.


11:50 a.m.

Gov. Bruce Rauner’s health care chief says a $63 billion Medicaid managed care program will save up to $300 million a year because of the competitive process providers had to undergo.

Department of Healthcare and Family Services Director Felicia Norwood told lawmakers in Chicago Thursday that savings result from insurers accepting lower rates to participate.

Chicago Democratic Rep. Greg Harris is chairman of the Appropriations-Human Services Committee and a sharp critic of the four-year deal. Thursday’s hearing was one in a series to examine the plan to add 800,000 Medicaid clients to managed care.

Harris believes the contract should have been let through a traditional bidding process.

A state regulator invalidated a $12.5 million consulting portion of the package this week because HFS did not seek bids.

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