Ill. governor taps Canadian IT firm to build insurance exchange

Illinois Gov. Pat Quinn's administration has filed plans to award a $66.5 million contract to build the state's online health insurance exchange to CGI Technologies and Solutions, apparently beating out four other bidders.

The federal government will initially set up the online exchange for Illinois, where an estimated 486,000 individuals and small businesses are expected to compare and buy health plans in its first year. Enrollment begins Oct. 1, for coverage mandated under the Affordable Care Act to begin Jan. 1.

CGI, a Montreal-based IT firm, will help conduct preliminary work for the exchange and provide IT services to the Illinois Department of Insurance, but the bulk of the company's work would come in 2015 if the state Legislature approves a law to create a state-based exchange.

The news is the latest in a flurry of about $60 million in recent agreements the Quinn administration has announced regarding the exchange. The state selected 44 community groups to help people navigate the exchange, while also filing a notice of intent to pick Fleishman-Hillard, a unit of New York-based Omnicom Group Inc., to promote the exchange.

CGI would be responsible for setting up and maintaining an exchange that also interfaces with the state's eligibility system for Medicaid, the federal-state health insurance program for the poor and disabled.

“This federally funded contract keeps the option open for a state-based Marketplace in 2015,” a spokesman for the Illinois Department of Insurance said. “It allows the state to start preliminary work for a website for a state-based Marketplace for 2015, in the event that authorizing legislation passes the General Assembly later this year.”

At least in its first year, Illinois is operating the exchange in partnership with the federal government.

The intent to award the contract to CGI was announced on July 19 on a state procedure website. CGI's three-year month contract would begin on Aug. 2.

Deloitte Consulting and Xerox were among the other bidders, procurement records show.

Quinn taps Canadian IT firm to build health insurance exchange originally appeared on Crain's Chicago Business's website.