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
Topics Workers' Compensation Connecticut
Was this article valuable?
Here are more articles you may enjoy.
Need Wind Mitigation? New Florida Insurer Wants to Help With That 
UK Payments Firm Moved Billions for Risky Clients Before FCA Seizure 
5 Years After Surfside Collapse: Safer Condos, More Transparency for Underwriters 
Florida’s Unemployment Rate Is Surging Even as High-Profile Companies Move In 
