Payments Suspended by Illinois Comptroller for an Online State Employee Health Insurance Program

Illinois Comptroller Susana Mendoza has suspended $5.7-million in payments on an online state employee health insurance program.  There will be a review of the contract with the Georgia-based Morneau Shepell before deciding on payment.  She made an announcement on Monday, on that and the new requirement that state agencies complete annual reports for the public, on the progress of their information technology deals exceeding $5-million.  A state audit last week found that the previous administration’s contract with Morneau Shepell, for a custom-benefit portal that was supposed to save the state $500-million a year.  The program was not done correctly, which auditors believe was done in the house, will end up costing taxpayers $10-million extra a year, and still is not delivering the services promised.  Two dozen officials were found to be involved in choosing Morneau Shepell, including Rauner’s office, the Executive Ethics Commission and the Central Management Services, failed to file conflict-of-interest disclosures.  Despite Morneau Shepell’s explanation that is routinely signed public contracts, that required minority participation.