Magellan of Idaho, the company set to take over Idaho state government’s largest contract to manage Idaho Medicaid mental health benefits, has hired three former Idaho Department of Health and Welfare employees, including David Welsh, who evaluated bids for the contract. Despite concerns about potential conflicts of interest, state officials maintain that no laws were broken in the solicitation process. The hiring of former government employees is not uncommon in Idaho, given the limited expertise in the state’s health care market.
The Idaho Department of Health and Welfare and the state legislature are grappling with legal challenges related to the contract transition, with lawsuits from two losing bidders, Optum and Beacon. While Optum’s lawsuit was dismissed, Beacon’s lawsuit is still pending in the Idaho Supreme Court. Magellan is set to take over the contract from Optum on June 30, with the state working on transition activities.
The state has faced challenges in ensuring a smooth transition for mental health providers amid the contract change but remains committed to providing high-quality behavioral health services to Idaho residents. The use of former government employees by Magellan has raised questions about accountability and transparency in the contract award process, but state officials insist that the outcome of the contract solicitation would not have changed even without Welsh’s evaluations. The hiring of state experts by private contractors reflects the nature of the free market and the need for qualified individuals to implement complex health care systems.
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