In April, Frank Chan, owner of Boise-based Applied Computing, was appointed by Governor C.L. "Butch" Otter to "represent small employer business interests" on the 19-member Idaho Health Insurance Exchange Board, overseeing the state-run marketplace which launched Oct. 1.
But it turns out that Chan's company had been bidding for a six-figure contract with the exchange. In fact, the Associated Press reports that Chan turned in his resignation to the board Oct. 16, the same day his company won the contract.
According to the AP, Applied Computing, will "oversee the exchange's technology vendors as Your Health Idaho switches from a software system provided by the federal government to a state-based system to take applications for health care coverage."
Officials with Your Health Idaho told Boise Weekly that the contract, to be paid in bill-able hours, would not exceed 2,080 hours, and would have a maximum payout of approximately $375,000. The contract covers a one-year period, but may be renewed in monthly incredments if the project had yet to hit the 2,080-hour threshold.
There were no other bidders for the contract, and Your Health Idaho officials said that, while the Your Health Idaho board has set procurement policies, the exchange is exempt from Idaho's procurement regulations.