Conn. AG’s Report Faults Rowland-Era $80M Workers’ Comp Deal

February 1, 2008

Connecticut Attorney Richard Blumenthal has released a report saying the Nutmeg State “badly botched” an $80 million deal to privatize payments of more than 600 state workers’ compensation claims — overpaying the contractor that set the deal up and failing to save any money.

At the center of the controversy is a company called MRM Consulting Inc., which was hired by the Department of Administrative Services to evaluate claims slated for privatization.

Blumenthal said the company – which was hired without a competitive bidding process – lacked the expertise to properly evaluate those claims, relying on college interns to perform the highly specialized analysis, and charging the state $105 an hour.

The claims were assumed by Ace Financial Solutions, a division of Ace Ltd.

The 2001 deal dates back to the administration of former Gov. John Rowland.

Blumenthal recommended that the state consider establishing a settlement fund and develop a program to settle workers’ compensation cases in-house.

He also recommended the state look at “how MRM can be held accountable for its highly troubling performance.”

Source: Conn Attorney General’s Office

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