Settlement Reached in SD Medicaid System Dispute

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PIERRE, S.D. (AP) – A South Dakota official says work on a new computerized Medicaid management system should resume soon because a settlement has been reached between the state and 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 managing the system that pays medical expenses for low-income people. The state ended the contract in 2010 because the work was behind schedule and of poor quality.
But federal officials persuaded the state and Client Network Service to enter mediation.
State Social Services Secretary Kim Malsam-Rysdon says the mediation led to a settlement and work should resume later this summer. She says the new system should be completed within about three years.


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