Report: Gov. Paterson's wife's firm got no-bid contract

Legislative investigators are looking into a $297-million federal contract Gov. David A. Paterson's administration awarded to a health-care provider that employs his wife Michelle, according to a published report Monday.

The 3 1/2-year contract subsidizes insurance for the uninsured as part of President Barack Obama's new health care reform act.

The New York Post is reporting that the contract awarded to Group Health Inc., a subsidiary of Emblem Health, was done without competitive bidding or public notice.

Michelle Paterson is director of integrative wellness for the company, which the Post reports could receive up to $30 million in administrative costs as a result of the contract received.

According to the Post, "an Insurance Department spokesman insisted that the selection of GHI had nothing to do with Michelle Paterson's working for parent company Emblem."

Michelle Paterson reportedly earns $152,000 a year.

Some officials have found it disturbing that New York chose to award the contract to GHI instead of joining more than 20 states who opted to have the federal government administer the program, the Post reported.