AP Exclusive: California gives no-bid health pacts

[Omaha Steve]

Source: AP-Excite

By MICHAEL R. BLOOD

LOS ANGELES (AP) — California's health insurance exchange has awarded $184 million in contracts without the competitive bidding and oversight that is standard practice across state government, including deals that sent millions of dollars to a firm whose employees have long-standing ties to the agency's executive director.

Covered California's no-bid contracts were for a variety of services, ranging from public relations to paying for ergonomic adjustments to work stations, according to an Associated Press review of contracting records obtained through the state Public Records Act.

Several of those contracts worth a total of $4.2 million went to a consulting firm, The Tori Group, whose founder has strong professional ties to agency Executive Director Peter Lee, while others were awarded to a subsidiary of a health care company he once headed.

Awarding no-bid contracts is unusual in state government, where rules promote "open and fair competition" to give taxpayers the best deal and avoid ethical conflicts. The practice is generally reserved for emergencies or when no known competition exists.

FULL story at link.



FILE - In this Nov. 13, 2013 file photo, Peter Lee, executive director of Covered California, the state's health insurance exchange, talks at a news conference in Sacramento, Calif. Long before it opened its doors to the public last fall, California's health insurance exchange awarded a small contract to a business consultant, Leesa Tori, for her advice on designing a program to sell insurance to small companies The industry veteran was a friend and former co-worker of Peter Lee, the exchange's top executive. The seemingly minor deal would mark the beginning of a lucrative and far-reaching partnership between the new state agency and the boutique consulting company Tori formed last year, just as national health care reform took root across the U.S. (AP Photo/Rich Pedroncelli, File)

Read more: http://apnews.excite.com/article/20141012/us-health-overhaul-california-contracts-154348638b.html

[highmindedhavi]

1. from the article...

"The deal would mark the beginning of a lucrative and far-reaching partnership between the agency and the company Tori formed about two years ago, just as national health care reform took root across the U.S. An initial $150,000 contract with The Tori Group in March 2013 was executed by Lee, but later amendments that increased its value to $4.2 million were approved by Covered California's board, an agency statement indicated."

[JDPriestly]

2. We can do better. Who appointed Peter Leee?

[former9thward]

4. He joined the Obama adminstration in 2009.

Lee was the Director of Delivery System Reform for the Office of Health Reform for the U.S. Department of Health and Human Services, where he coordinated delivery reform efforts for Secretary Kathleen Sebelius and assisted in the preparation of the National Quality Strategy.

Lee is the first Executive Director for California's health benefit exchange, “Covered California.” Having been confirmed unanimously by the exchange Board on August 23, 2011.

http://hbex.coveredca.com/executive/

[JDPriestly]

5. Thanks. Here is what I wanted to know.

Covered California is an independent part of the state government whose job is to make the new market work for California’s consumers. It is overseen by a five-member board appointed by the Governor and the Legislature. For more information on Covered California, please visit www.CoveredCA.com.

http://news.coveredca.com/2014/04/covered-california-executive-director.html

Bios on the board available at
http://board.coveredca.com/

[Big_Mike]

3. Crap like this was why I voted against Gray Davis on the recall

He let a no-bid contract go to Oracle, and then the software was useless. Sure wish we'd have had Peter Camejo instead of Ahhnuld. But the executive is supposed to prevent crap like this. Jerry, go get 'em! You smashed Countrywide, no go after this, another rip-off of California taxpayers.

[SoapBox]

6. Well...WTF!

I'm sure hoping that the papers are going after this bullshit.

I am SO tired of crap like this.