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NEW: Deloitte Awarded $105m Contract to Create New Healthcare System

Thursday, January 24, 2013


Governor Lincoln Chafee announced today that in an effort to modernize the way the state administers Medicaid and other human service programs, and in an attempt to create Rhode Island’s Health Benefits Exchange, the state has awarded a $105 million contract to Deloitte Consulting to create the technology infrastructure that will “support streamlined access the health insurance coverage” in RI.

The contract, which runs over three years, is 84-percent federally funded and included federal money specifically appropriated to support the development of state Exchange systems and streamlined systems for Medicaid and other human services programs.

Under the new system, Chafee’s office said, Rhode Islanders will be able to securely purchase or access insurance from their computers, over the phone, or in person. Also, individuals, families, and small businesses will be able to compare and buy health insurance at their convenience.

“The system will guide Rhode Islanders through a process to select the right plan for their family and budget, providing easy to understand information about their options,” the Governor’s office said in a release issued today. “Eligibility for and access to state and federal financial assistance will be available for those who qualify.”

Chafee says the system will improve the efficiency of Rhode Island’s human services programs by updating the currently 20-year-old systems in place now and should make it easier to identify instances of fraud or abuse.

“Rhode Island has been a national leader in changing our health care system for the better – and this new technology will allow us to move forward even more effectively,” Chafee said. “The Exchange is a key component in our ongoing efforts to make health care more affordable for Rhode Island individuals and employers and to make the process of attaining that health care easier and more efficient.”

Rhode Island Secretary of Health and Human Services Steven M. Costantino says the early decision to integrate the technology shows the state is an “innovator” nationally.

“This investment will modernize and improve the overall process for Rhode Islanders who deserve an accountable, customer focused, and easy to navigate experience,” he said. “It will lower costs by eliminating duplication and creating new efficiencies in the operations of these programs.”

Exchange Director Christine Ferguson says the Exchange should be up and running by October of this year.

Deloitte was one of three national firms that responded to the state’s request for proposals and was chosen based on their experience with health and human services technology as well as their work with health care reform or health insurance exchange-related projects in 10 states and four federal agencies.

“Deloitte understands the challenges of meeting the requirements of a significant mandate like the Affordable Care Act, and we look forward to helping Rhode Island build a system that meets the specific needs of its citizens,” said Patrick Howard, a principal with Deloitte Consulting LLP and head of the Deloitte U.S. Firms’ State Health Care practice.


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