The state of Nevada had a rocky start with their state health insurance exchange for 2014. This has triggered some major changes for 2015. Xerox the contractor responsible for facilitating the state exchange was fired in May.
An audit preformed by Deloitte (an accounting firm) recommended Nevada tie it's Medicaid software into the federal system. Nevada accepted the recommendation and hired Deloitte to complete the task.
In order to do this Nevada amended their existing $28 million dollar contract with Deloitte which is the 9th amendment to the contract. The amendment adds a 16 million dollar payout to Deloitte. The contract was issued without competitive bidding for the services. Even though competitive bidding saves tax payers money the reason for not seeking bids was "there was not enough time". A hand full of blue chip companies have been awarded contracts in 17 other states.
Oregon, Minnesota and Maryland are three other states that have hired Deloitte for more than $63 million combined. Deloitte certainly has grown in the health insurance industry. Hopefully the money spent will iron out the wrinkles and make 2015 easier on consumers seeking to enroll.
