Call Centers Got Big Contracts From Health Law, But How Big Is Unclear

Before the Affordable Care Act was even open for enrollment, Viviana Alvarado was already taking calls from people who wanted to know more.

She and about 40 of her colleagues are answering the phones for , the company Connecticut contracted to run its call center. The contractors running the troubled federal healthcare.gov website have been under intense scrutiny in the past month, but those businesses arent the only ones being paid to roll out Obamacare.

Call Centers Got Big Contracts From Health Law, But How Big Is Unclear

In the states that are running their own health care exchanges, call center practices vary.Oregon, for instance, set up its own; other states, like Connecticut, farm that business out to companies like Maximus.

“Its a huge opportunity and it remains so, says , an analyst at Gartner, a technology research firm.“The bottom line is there are millions of millions of folks coming in for insurance coverage.That represents great opportunity for both commercial carriers and for those contractors who are servicing health care.”

How much is Maximus making in Connecticut?In a press release, the company over three years, for staffing and operating the call center.But that lump sum is all the information the company provides.

Access Health CT, the states exchange, wouldnt confirm the $15 million price tag.And while it will say that it is paying a per minute fee per call, it wont say how that fee is calculated. In fact, its contract with Maximus that it blacks out all language that has to do with pricing.

That means that taxpayers cant know how much the state of Connecticut is paying Maximus.

The question is: Why?

“Well, redactions are things that typically relate to privacy and competitive issues from vendors,” says , CEO of Access Health CT, the states new insurance marketplace. Counihan says state law allows vendors like Maximus to redact what they think is proprietary information from public documents.

But should pricing be proprietary in a government contract?

“Is price something that someone should be able to redact? I sure think so. Whats the whole point? If everybody knows what everybody is pricing, everybodys going to be pricing at the same level. And that doesnt drive a good deal,” Counihan says.

Maximus refused to comment on its Connecticut pricing. In a statement, the company says call centers are in a “highly competitive industry.”

In emails tothe state, the company justifies its position by saying that releasing its pricing information would “result in irreparable economic damage to Maximus and significantly weaken its competitive position in the marketplace.”

Maximus also has a contract in Hawaii. But in thatstate it doesn’t have to disclose its contracts at all because the health insurance marketplace, the Hawaii Health Connector, is .

Vermonts exchange handled things differently. It has posted on the Internet a The document spells out everything from how long a call can be on hold to how quickly it must be answered.

, the head of Vermonts exchange, explains: “We are spending taxpayer dollars and we understand our responsibility to ensure that theres transparency in how those dollars are being spent, to whom theyre being given, and what we get in return for them.And we want to make sure that its easy for Vermonters or others to find that information.”

According to the contract, Vermont pays Maximus 86 cents a minute for calls, and the state estimates a call volume of about 573,300 minutes per month.That comes out to about $500,000 a month.

Rick Howard, the Gartner analyst, says that, in an ideal world, none of the call center prices would matter.Everyone would sign up on the Internet.

“This is just a really complicated, initially, enrollment cycle, Howard says.Once the websites continue to evolve, then I would expect, over time, call center activities to be greatly reduced from what they were here in the first months or year of the marketplace.”

Until that happens, theres money to be made.But in Connecticut, the public just cant know how much.

This piece is part of a collaboration that includes , , and Kaiser Health News.

Related Topics

InsuranceAffordable Care ActCost and Quality

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