Back in May, shortly after Texas filed suit against Xerox and removed the company as the lead contractor in the Texas Medicaid and Healthcare Partnership for its failure to properly handle Medicaid orthodontic prior authorizations leading to $1.1 billion in program expenditures, the State of New York awarded Xerox a $550 million dollar contract to build a new Medicaid management system for the state.
Now, based on the Texas lawsuit and actions occurring in other states such as Alaska and Nevada against Xerox, both Hewlett-Packard and Computer Sciences Corp which were competing for the New York contract have filed complaints with the state comptroller’s office alleging the contract was improperly awarded.
New York’s Medicaid system is probably the largest in the country and spends $54 billion per year.