Report: UHIP has cost taxpayers $407 million so far

PROVIDENCE, R.I. (WPRI) – Rhode Island’s benefits eligibility system known as UHIP has cost $407.3 million to date, according to a new report by the state’s auditor general.

Here’s a breakdown of the expenses:

  • $207.3 million – Deloitte, lead systems developer
  • $99.3 million – Consulting
  • $51.8 million – Customer service operations
  • $22.8 million – State payroll
  • $8.2 million – IV&V vendor
  • $7.4 million – Advertising, marketing & public relations
  • $6.1 million – Computers, equipment & software
  • $1.8 million – Other
  • $1.6 million – Printing and postage
  • $565,000 – Legal
  • $357,000 – Auditing

“It surprised me,” said House Oversight Committee Chairwoman Patricia Serpa. “To learn that we’re spending almost $100 million on outside consultants, I think we have some talent in the state. We don’t need to look outside the boundaries of some of the people in this state.”

Eric Beane, acting director of the Executive Office of Health and Human Services, disputes the auditor general’s total cost of the UHIP project. The agency reports that the current total is $332.5 million, which would actually be less than the $364 million pricetag that’s been widely reported.

“He [Auditor General Dennis Hoyle] did include expenses that were almost entirely federally funded to start up the health exchange that aren’t part of the typical project costs that have been reported consistently over the years,” Beane said.

As we’ve reported, Deloitte is refunding the state $27 million for costs associated with UHIP system issues. Beane told the House Oversight Committee he anticipates another round of negotiations with the company in the coming months.