The state will pay 10.5 million
dollars to a Texas company to settle litigation that began when the
Department of Health and Human Services canceled its contract with
The state had hired Affiliated Computer Services to complete a
massive Medicaid system overhaul. In 2004, the company one a
five-year, 171-million-dollar deal to modernize the state's Medicaid
billing system that pays about one-point-seven million claims
The department ended the deal last July after complaints that
Affiliated Computer Systems had missed deadlines. The system
upgrade was supposed to be completed last year.
The company sued in January, accusing state regulators of not
providing enough information and not conducting timely reviews.