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Timing Uncertain for Medicaid Computer System

FILE: Medicare, Medicaid, Health
David McNew/Getty Images

PIERRE, S.D. (AP) — State officials say they do not know when work will resume on a new computerized Medicaid management system because negotiations have not been completed with the company hired to do the work.

The state signed a $62 million contract in 2008 with Client Network Service Inc. of Maryland to develop a new computerized system for the program that pays medical expenses for poor people. The state ended the contract in 2010 because of a dispute on the timing and quality of the work, but the state and the company have since agreed to resume the project.

State Social Services Secretary Kim Malsam-Rysdon says the project’s timing is uncertain because negotiations continue on what will happen when work resumes.

The federal government is paying 90 percent of the new system’s cost.

Copyright 2013 The Associated Press.

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