Computer Problems Complicate Medicaid - KFBB.com News, Sports and Weather

Computer Problems Complicate Medicaid

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HELENA, Mont. (AP) - An expensive state computer program that will run complicated Medicaid payments is behind schedule. 

The Montana Department of Public Health and Human Services has rejected the first phase of the $70 million computer program from the contractor, Xerox.

The company has told the state it is developing a new timeline for finishing the project. And it is shifting more resources to the Montana project since it has just completed similar computer programs in two other states.

Ron Baldwin, the state's chief information officer, says he remains confident Xerox will be able to complete the tricky program.

But based on experience with software programs, Baldwin says the state wrote a contract that makes sure Xerox doesn't get any money until the state is satisfied with the product.

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