Jindal health secretary resigns amid investigation

Bruce Greenstein
Bruce Greenstein

BATON ROUGE, La. (AP/WAFB) - Gov. Bobby Jindal's health secretary, Bruce Greenstein, has resigned amid ongoing state and federal probes into the awarding of a Medicaid contract to a company where Greenstein once worked.

The Jindal administration canceled the nearly $200 million contract with Maryland-based CNSI last week after details leaked of a federal grand jury subpoena involving the contract award.

The governor's office announced Greenstein's decision Friday. His resignation takes effect May 1. Jindal spokesman Kyle Plotkin says the governor didn't ask Greenstein to leave.

The 10-year contract was for Medicaid claims processing and bill payment. The state attorney general's office has said the contract was improperly handled.

When the Medicaid contract was awarded two years ago, Greenstein denied any involvement in the selection. But he acknowledged that a change he pushed in the bid solicitation made CNSI eligible.

CNSI released the following statement:

We have no comment regarding the secretary's resignation.  However, despite his resignation, it remains our position that our contract was wrongfully terminated.  We are going to challenge that termination utilizing all legal avenues available to us.

Kathy Kliebert has been appointed by Gov. Jindal to serve as interim secretary of DHH.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)