States Award Contracts to Run Medicaid Billing Systems

(MoneyWatch)  Two different states announced that they awarded contracts to run their Medicaid billing systems. New Jersey extended the contract of Unisys and North Carolina hired CSC. Previously North Carolina had utilized EDS to run their system. The New Jersey contract is reported by WashingtonTechnology.com here and is worth over $200 million if all options are exercised. The News & Observer has the story on the CSC award. EDS has the right to protest the award. The North Carolina contract is worth about $265 million. In both cases the Federal Government will pay most of the actual cost of running the system. Many states such as Florida as reported here have been investing in upgrades to their health care management systems in order to get more of the money they are owed payed. This is to offset declining revenues with the economic troubles of today.