Company objects to Medicaid disqualification

LITTLE ROCK, Ark. (AP) - A Maryland company is objecting over Arkansas' decision to disqualify it from bidding for a Medicaid contract over concerns about a neighboring state canceling a similar agreement with the firm.

State Finance and Administration officials told a legislative panel on Monday that it had disqualified Client Network Services Inc. from bidding for the state's Medicaid Management Information Systems contract after Louisiana had terminated a similar contract with the company.

CNSI's president and attorney told lawmakers they believed Arkansas unfairly disqualified the company for the claims processing contract. State officials said they believed procurement officials followed proper procedure in disqualifying the company.

CNSI is suing the state of Louisiana for cancelling its $200 million claims processing contract with the company.