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State: Xerox in breach of Medicaid contract

Published On: Jun 30 2014 01:08:02 PM MDT
HELENA, Mont. -

Montana officials say Xerox Corp. is in breach of its contract in developing a new computer program to run complicated Montana Medicaid payments. The state says it has lost nearly $13 million as a result of the delays.
According to a June 18 letter from the state to Xerox, the company has not delivered on any of the contract's substantive requirements and has missed numerous deadlines.
Xerox officials did not have an immediate comment to an Associated Press query Monday.
The Medicaid Management and Information System to handle payments to thousands of Medicaid providers is supposed to replace a system more than 30 years old. The federal government is picking up the tab on 90 percent of the $70 million project, which was awarded to Xerox in 2012.