Company Returns $800k PPACA Navigator Grant

Sandy, Utah-based Cardon Outreach has decided to return more than $800,000 in federal grant money that was supposed to fund the company's efforts as a Patient Protection and Affordable Care Act health insurance marketplace "navigator," according to a report from The Washington Post.

Cardon — which helps people enroll in Medicaid — was one of 105 state and federal navigator organizations to receive a portion of $67 million in federal funds to help consumers navigate the new health insurance exchanges. The navigators will perform informational services for Americans who need assistance in shopping for and enrolling in plans this fall. Cardon had planned to help people in Utah, Pennsylvania, Florida and Oklahoma, according to the report.

However, Charles Kable, Cardon's chief legal officer, informed federal officials the company will return the grant, according to an email obtained by The Associated Press. The email didn't go into details concerning the reason behind Cardon's decision, and the company could not be reached for comment, according to the report.

Cardon's decision comes in the midst of increasing scrutiny surrounding the healthcare reform law's navigator program. Last week, the Florida Department of Health barred navigators from county health departments, a move HHS has denounced as a "blatant and shameful" attempt to intimidate groups working to help insurance consumers.

Last month, Florida Gov. Rick Scott, Attorney General Pam Bondi and the state's CFO Jeff Atwater expressed doubts about whether the navigators will get adequate background checks and training. Organizations that will serve as navigators in Florida have dismissed these concerns, saying there's no danger of navigators stealing consumers' identities.

Additionally, members of the House of Representatives Committee on Energy and Commerce have asked the navigators for information on how they plan to spend $67 million in federal grants. Navigator groups have responded to the requests with offense and have said the committee's demands could hurt hiring and training efforts.

More Articles on PPACA Navigators:
HHS Criticizes Florida Officials for Barring Navigators From Health Units
Navigators: GOP Requests Could Hurt Hiring, Training Efforts
Republicans Request PPACA Navigator Grant Information

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